The metaverse will account for 10% of luxury sales by 2030

The metaverse is no longer a child's business. Sales related to the digital universe, including gaming and NFTs, could account for 10% of the total turnover of the luxury industry by 2030, according to estimates by American consultant Morgan Stanley.

This phenomenon will result in a 25% increase in the sector's gross output (ebit) over the next ten years, generating a billing opportunity of about €50 billion, the consulting firm foresees.

Mientras que el negocio en el metaverso tardará varios años en alcanzar su potencial, los NFTs y el gaming ya han comenzado a hacerse un hueco en el sector, respaldados por los grandes de la moda de lujo como Dolce&Gabbana, Balenciaga y Gucci (estas dos últimas, propiedad del conglomerado Kering).

El metaverso emprende su conquista: los artículos híbridos de lujo alcanzarán una facturación de hasta 25.000 millones de dólares hasta 2030. Clic para tuitear

Specifically, the NFTS market will grow up to $300 billion by 2030, and more specifically, luxury hybrid items (digital but complemented by physical objects) will reach a turnover of up to $25 billion. Currently, luxury accounts for only 1% of NFTs' total revenue, due to the danger perceived in brand value, says Morgan Stanley's report.

For its part, the gaming business, composed of sales of virtual items for avatars or digital universes accessible through video games, will add between $10 billion and $20 billion to the luxury target market over the next ten years. Some of the first to launch this phenomenon were Prada, hand in hand with the historic Final fantasy saga in 2012, or Louis Vuitton with League of legends in 2019.

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Gaming is also the most exploitable category for luxury within the digital universe: according to Morgan Stanley, it has more potential to generate revenue than the others, assuming 40% of total turnover in the metaverse by 2030. On the other hand, it is the NFTs that grant a greater ebit.

Also, the US consultant's report points to a possible merger of these two concepts, which will fall under the umbrella of the metaverse, driven by the recent brand renewal of the Facebook network, which became Meta. "for the time being, the interoperability of these markets is years away," says Morgan Stanley.

El salvador del lujo

On the other hand, Morgan Stanley's projections point to the digital world becoming the savior of the luxury industry, which suffers from the slowdown in the development of the Chinese economy, the key market for the sector since the last crisis.

Last month, US investment banks Goldman Sachs reduced the sector's growth forecasts to 9% in 2022, 4.5 percentage points below originally estimated. The company also contracted estimates for 2023, up to 7 per cent year-on-year, compared with 11.5 per cent previously established. In this context, the metaverse could be a way of escape for luxury in the face of the difficulties of the physical environment.

Source: fashios.es