According to Morgan Stanley, digital demand for fashion and luxury brands is predicted to rise from present low levels, resulting in additional revenues of $50 billion for the industry by 2030.
“Luxury companies’ revenue streams from digital channels are negligible… This, we believe, is going to change “The investment bank’s strategists said in a letter on Tuesday.
“While the Metaverse will take many years to develop, NFTs and social gaming (e.g., online games and concerts attended by people’s avatars) present two near-term prospects for luxury brands,” it stated.
According to Morgan Stanley, non-fungible tokens (NFTs) and social gaming could increase the total addressable market for luxury goods by more than 10% in eight years and increase earnings before interest and tax by roughly 25%.
It was reported that luxury brands are investigating a number of collaborations with gaming and Metaverse platforms, citing the fact that one in every five Roblox gamers updates their avatars on a daily basis.
It also stated that the recent sale of nine NFTs for $5.7 million by Italian company Dolce & Gabbana, despite being minor, demonstrates the virtual and hybrid luxury goods’ great potential in the coming years.
“We expect the Metaverse to help the entire sector,” it stated, “but see soft luxury brands (ready-to-wear, leather goods, shoes, etc.) as particularly well-positioned as compared to hard luxury (jewelry and watches).”
