If you read the news today, you might think that Web 3.0 was over before it even started. Meta (META: Nasdaq), the company that used to be called Facebook and is the biggest supporter of widespread use of the metaverse, has let go of thousands of workers. Every day, the prices of cryptocurrencies go down, and NFTs, which were all the rage a year ago, are now falling to new lows. But luxury marketers would be wrong to think that the metaverse is just a passing fad, even though these economic signs aren’t great. The metaverse is coming, and Millennial and Gen Z shoppers will change luxury shopping forever by making deeper connections with brands through their metaverse interactions.
The metaverse is a level playing field that is important for keeping the loyalty of young consumers, who give brands a very high lifetime value. For young people who have never lived in a world without computers, the metaverse is not a strange idea. Instead, it is a place where they feel very at home interacting with others and shopping. In fact, a recent report from Global Voices shows that nearly a quarter of Millennials and Gen Z are not only aware of the Metaverse but also want to buy into it. Almost 20% of Gen Z and Millennials say they would buy something in an online game.
15% have already bought an NFT or digital item. When you look deeper into developing countries that are crazy about luxury, the numbers are even more shocking. About 47% of Chinese shoppers under the age of 34 look for products on Metaverse. Half of the same-age consumers in India have shopped in an online store. About 42% of Gen Z and Millennial customers in the UAE have bought NFTs. These shoppers are the power shoppers of the future, and luxury brands need to court them in the metaverse now to make sure they will still be important in the decades to come.
Now is the right time to make a plan for the metaverse. As more young people born between 1996 and 2012 join the workforce, each year their buying power will grow. Bank of America says that by 2030, Gen Z will make $33 trillion and control more than a quarter of the world’s income. Morgan Stanley thinks that by 2030, the metaverse will bring in $50 billion for the luxury and fashion industries. This may not be a coincidence.
It’s not too late to start something new in the luxury world of the Metaverse. Few luxury brands have fully used or even tried out the potential of the metaverse, but Gucci and Dolce & Gabbana have been the most innovative so far. Gaming is by far the best way to work together and try new things because you can sell virtual goods and NFTs to people who are already playing. They have also made virtual stores of luxury that can be used to connect to other metaverse interactions. Dolce & Gabbana went one step further and auctioned off a nine-piece collection of both NFTs and real clothes. The collection sold for 1,885.719 Ether, which was worth $5.7 million at the time.
Gucci, on the other hand, has done more to make sure that its brand stays ahead in the metaverse. In September, the company said that Robert Tryfus, who has a lot of experience in the luxury market, would be CEO of its new Vault and Metaverse Ventures. Both the job and the division are new to Gucci. They show the company’s overall commitment to the growing importance of gaming and the role Web3 will play in their larger business goals.
For all consumers, the lines between virtual and real will continue to blur. This will be especially true for people born after 2016. Now is the time to come up with a metaverse strategy that will bring in new customers and more brands for a long time to come. deep trust, and closeness. You have to be in it to understand it.
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