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Back to news From business to fashion: the future of luxury is in the metaverse From business to fashion: the future of luxury is in the metaverse

From business to fashion: the future of luxury is in the metaverse

The luxury market is increasingly central in the metaverse: in addition to the success of the best fashion brands in the virtual world, the business world is also growing bigger in the metaverse.

6/14/2022

The luxury market is increasingly central in the metaverse: in addition to the success of the best fashion brands in the virtual world, the business world is also growing bigger in the metaverse. Here’s an analysis about the growing trend of the luxury and fashion market in the virtual world.

TABLE OF CONTENTS:

Business in the metaverse: how and why

Business in the metaverse: hot to do - Santandrea Luxury Houses It is not the first time that we write about the increasingly central role that the virtual world, or rather the metaverse, is playing in the business world, and, more specifically, with respect to the luxury market. In fact, we have already mentioned both the growth of the luxury real estate market in the metaverse and the massive investments of the most famous fashion brands in the virtual world, culminating in the Metaverse Fashion Week. Focusing on the latter trend, business success stories in the metaverse have multiplied in recent months. One of the most recent is that of Exclusible, a startup founded by Thibault Launay and specialized in creating digital experiences for luxury brands in the metaverse, through NFTs, to which we have dedicated an article focused on the world of art. The metaverse has now become an established frontier of business, even fundamental to be able to expand the market of luxury brands to the virtual world and, mostly, to the market segment of the youngest, already accustomed and very active in the digital world.

Another similar reality is the Mioo start-up, born from the collaboration between Mion S.p.a. and Valuart, with the aim of promoting the sustainability of the fashion sector - which we discuss in another article - through metaverse interactive objects, namely digital products that can be collected and traded in the virtual world exploiting the blockchain technology, which generates digital certificates of authenticity and uniqueness for the objects, also favoring the tracing in all the steps of the production chain, starting from the raw material to the purchase. Another success of the business in the metaverse is Wear3 by Avawear, the project of the entrepreneur Andrea Panconesi, who has created a marketplace for the sale and purchase of NFTs that identify clothing items to be used in the virtual world. As anticipated, however, the business in the metaverse also concerns the world of works of art, with the so-called “crypto art”, namely all that set of digital works, or physical works of art subsequently digitized, identified by a specific data structure, formed by a temporal chain of blocks, which make it unique and authentic. Crypto art is the basis of a dense commercial network of unique works, which can be purchased and sold as exclusive contents at mind-boggling figures. Suffice it to say that, over the course of 2021, crypto art generated an amount of 24,9 billion dollars linked to the sale of digital works of art.

Meta-fashion: desing in the metaverse

Business in the metaverse: luxury meta-fashion- Santandrea Luxury Houses If the luxury sector is already a protagonist in the metaverse, the real forerunners are the fashion brands, which immediately rode the commercial opportunities offered by the so-called “meta-fashion”. This expression indicates the whole sector of the sale of virtual goods in which luxury brands are already investing, especially to attack the market segment represented by those born after 2000, the so-called Generation Z, which represent an annual turnover of over 200 billion dollars. There are several fashion brands that have already undertaken strategies and invested in meta-fashion. Such as, for example, Hugo Boss and Gucci, with the digital artwork "Gucci Aria NFT" auctioned by Christie's, or with the virtual garden "Gucci Garden Experience", which attracted more than 19 million visitors and the sale of virtual Gucci Dionysus bags at an average price of around 1.600 euros, or at the cost of a real luxury bag.

Also Balenciaga entered the metaverse thanks to a partnership with Epic Games on Fortnite, creating four virtual dresses and various accessories for the video game avatars. But also Ralph Lauren and Louis Vuitton have signed various accessories and virtual products designed for the gaming world, in addition to Burberry which has collaborated with Tencent Games. All this confirms what has already been noted regarding the Metaverse Fashion Week. In recent months, the metaverse - or rather, the various autonomous metaverses that already exist - has become the scene of the sale and purchase of luxury items and, according to an estimate by the lender Morgan Stanley, will represent more than 10% of the market for goods of luxury by 2030, for a figure that is around 45 billion euros compared to the more than 400 total in the sector.

Technological trends between metaverse and NFT

Business in the metaverse: trends, nft and crypto art - Santandrea Luxury Houses Turning instead to the technological trends relating to the metaverse and NFT, it can be said that one of the sectors affected by the biggest growth, as anticipated a few lines ago, is that of crypto art works. To access this market, you need to open a digital wallet, in which to store the cryptocurrencies required for transactions. After opening a wallet and filling it with cryptocurrencies, it is necessary to identify the marketplace - that is virtual shop - most suitable for the type of NFT that you intend to buy or sell.

To give an idea of ​​the value of art NFTs, we can take as a reference the most expensive in the world, which can even reach 91 million dollars ("The Merge by Pak"), or stand just below the level of value (“Everydays, The First 5000 by Beeple” sold for 69,3 million dollars and “Clock by Pak and Julian Assange” for 52,7 million dollars). In general, therefore, the business is rapidly moving into the metaverse, both as regards the luxury market and with respect to fashion in general - with meta-fashion - and to the world of art. In fact, in the coming months, industry experts expect rapid and exponential growth of the metaverse, where more and more users are accumulating cryptocurrencies in their virtual wallets.



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