The luxury of Metauniverse sells for a higher price than the one that stands out

Compared to luxury brands such as jewelry and watches, luxury ready-to-wear, leather goods and footwear have a better presence in the meta-world.

Some people think the "meta universe" is real, but as the concept has grown in popularity, luxury and tech companies alike have planned for the future of the meta world. .

Morgan Stanley's analyst team recently released a report:Social games in the meta-world (like online games and concerts where people participate with virtual IDs) and NFTs take two approaches."

According to a report by Bain Consulting, the global luxury industry will show Type V returns in 2021, but will remain below 2019 levels. The Meta Universe has opened a new path for the luxury industry, but the biggest challenge remains the return of the Chinese luxury goods industry.

1,Open your social game store and open the door to thousands of dollars of investment.

Millennials and Generation Z, who spend a lot of time in the virtual world, see themselves as virtual (avatars) as an extension of their image. In the platform game Roblox, a fifth of players buy virtual goods and clothes to express themselves and change their virtual ID on a daily basis. In virtual reality, photos are everything.

This gives the entry point into the luxury industry. Analysts on the Morgan Stanley team show that luxury companies have had the ability to sell virtual goods in the meta-world. The company increased revenues by more than 10% and revenues before interest and taxes increased by 25%.

Balenciaga, a subsidiary of Kering Group (KER), has been selling the unique game "Skin" of the popular game "Fortnite" for around $ 8 since September of this year.

Also part of the Kering Group, Gucci launched the Gucci Garden Experience at Roblox. It has become the barometer of interest in the virtual fashion store. A leader in the luxury industry has created a virtual space with a swimming pool, open doors and a shopping area. When the digital version of the Bacchus bag hit stores, the price rose to over $ 4,000, more than the actual bag sold at $ 3,400.

Blockchain industry news agency Cointelegraph believes Metaverse can help expand consumer luxury as well. For example, Roblox players are now predominantly teenagers, and 70% of fashion industry sales are female. The Meta Universe will give luxury companies the chance to appeal to new-age consumers who previously did not engage with their audiences.

He estimated that the sports community could bring in between $ 10 billion and $ 20 billion in revenue for the luxury industry.

2,Take advantage of NFT's new demand and solve the artifact problem

Luxury companies are also entering the NFT market, ensuring the status quo for Metaverse. In September, world-famous designer Karl Lagerfeld announced 777 NFT at DEMATERIALIZED, a digital retailer, priced at 77 euros (around $ 87). Lagerfeld's jobs were sold in seconds on player expectations, hence the enthusiasm for this new path opened by the luxury market.

In October, Dolce & Gabbana's first NFT series went on sale at luxury retailer UNXD, and nine NFTs sold for $ 5.7 million. Morgan Stanley analysts say consumer appreciation of NFT products will create increased demand for luxury companies in the medium term.

In addition to stimulating demand, luxury companies receive DTV for two reasons. First of all, luxury goods sales do not make money for luxury companies, this is also a problem that has plagued the luxury industry for many years. During this time, a certain percentage of sales have been generated. In addition, since NFTs have their own characteristics, they can solve the problem of false luxury.

What worries analysts most is how much of new revenue can be converted into revenue. For example, OpenSea, the NFT platform, has a commission rate of only around 2.5%, while platforms like Alibaba and Tmall or e-commerce platforms like Farfetch have a commission rate of between 15% and 40%. %.%. They believe they are more dependent on the NFT industry to sell luxury goods, leather and shoes than on luxury goods which sell jewelry and watches.

Due to Gucci's expectations in the metaverse, HSBC revised the Kering Group's rating from “keep” to “buy”.

Three,The big challenge: to return from the luxury industry to China

Since China's stance on the cryptocurrency issue is also strong, some may think China has the same stance on the metaverse. But in fact,Chinese tech companies have developed online stores similar to Metaverse, including the Taobao, Tmall, JD.com, and WeChat platforms and apps.

China Economic Research Group analyst Kerstin Brolsma (Kerstin Brolsma) said, “Some companies in China have invested a lot in making consumers more aware and accessible. the leader. in the world of sports. "

Brosma points out that Millennials and Gen Z grew up with games, are acclaimed for virtual fashion or character outfit, and are potential fans of the meta world.

Brosma also said, “People in this group want to buy. The combination of physical and digital equipment is very attractive. There is demand. As long as businesses are luxury. very willing to do so, they will be welcome. In fact, the singers of China A Duo announced their first NFT musical single "Water KNOW" on May 25, and the price rose to 304,271 yuan.

But he also pointed out that the growing demand for digital knowledge in Western countries is due to long-term shutdowns or exclusion from transmission, and China, which in the past controls the infection, now has different values. .

Brosma is "The location of the headquarters of luxury companies will affect how they develop their global meta in the next 5, 10, 15 years, and China's current needs are different from those of other Western countries., which also highlights the wider competition for the luxury industry: the recovery of the Chinese luxury industry. "