The possibilities for commerce in the Metaverse are endless. A space that has the potential to be a gathering place for people from every corner of the globe and a place where (virtual) money can be made by anyone who has an idea and the drive to make it a reality. This is why luxury brands have been moving into the Metaverse over the last few years, building their presence and making millions in revenue. Read this article to learn more about 5 luxury brands that have taken advantage of these opportunities and created an impressive presence in Second Life.
Nowadays, virtual reality is one of the hottest trends in entertainment. The VR industry is expanding quickly and involves tech giants like Facebook, Google, Samsung, and Microsoft. The first VR headset was released by Sony in 2016. At this moment, more than 50 headsets models that can be used with smartphones are available. By 2022, the market for VR is expected to reach $80 billion.
For consumers, virtual reality offers highly engaging experiences.
Luxury Brands Are Already Making Millions in the Metaverse
The luxury goods market in the metaverse is expected to grow exponentially over the next ten years. These virtual stores are already generating millions in revenue and this trend will continue as more people enter the metaverse.Brands like Gucci, Louis Vuitton, and Burberry are making millions of dollars by selling their products in virtual worlds. These brands are looking to the future and want to be involved in the metaverse, to ensure their brand's longevity.
1. 5 Luxury Brands Who Are Making Millions in the Metaverse
Five luxury brands have seen their market value grow thanks to their investments in virtual reality. LVMH and Richemont are making a great deal of money from their VR investments.Ralph Lauren and Tommy Hilfiger are also enjoying success in the Virtual reality world. VR/AR will always grow in popularity, and according to a Vice President of Interactive Marketing at Google, 11% of all site activity involves some kind of mixed-reality or augmented-reality components. Share of voice in web search (where a developer may or may not be able to create a massive mixed-reality site on their own) is also expected to increase over the next 2 years.
We are at the beginning of a brave new world of sites, and creative marketers should be thinking seriously about how their services can be incorporated into these new platforms.
2. The 5 brands profiled: Cartier, Louis Vuitton, Gucci, Burberry and Chanel
Chanel is the most valuable luxury goods brand in the world and is worth $9 billion. Best-known for its iconic handbags and perfumes, Chanel is also world-renowned for its high-fashion clothing and accessories. For the last few years, the internet has been buzzing with whispers that the fashion and jewelry brand could be on the verge of making a huge move in the metaverse to capitalize on the huge growth in VR and AR and capitalize on the fast growth in digital spending and consumer interest in the products.Their recent investments show the exact opposite — they are reportedly investing no more than $250,000 in the metaverse. The Verge reports that if their venture works, their business model will look like this: Enter a movie studio and equipment rental company, the MetaCinema, who show movies in "theatre rooms" that are set up in the metaverse. They charge theaters a fee of $250 per showing, and users will get an "immersive movie experience." The Verge piece is an interesting look at one of the more "promising start-ups" in the entertainment industry in the past few years.
How investment in VR and AR has changed the lives of these brands
Virtual Reality and Augmented Reality investments in the consumer market have been mainly for profit. Wealth is measured by the valuation of assets, which VR/AR games typically provide to users. The immersive component of the VR/AR games creates an increased sense of immersion, typically by creating worlds that visitors do not realize they are living in. This also means that users are more likely to come back again.AR investments have been for other purposes, including ownership of the real estate, augmented reality TV/entertainment, teleworking, and even spiritual and religious experiences. But the most expensive investment among these five has been in the realm of technology with its implications for marketing.
When you look at the world with fresh eyes, you can see opportunities where others might not even realize them to be possibilities. If you have a huge brand with a lot of name recognition, it only makes sense to leverage this and move into new markets, such as the Metaverse and Second Life.
The world of virtual reality is a new frontier in both business and leisure but it's one that can be conquered by those who understand its potential and put in the hard work to make it a reality. The luxury brands that have already made their move into the metaverse are reaping huge revenues and now have a massive competitive advantage over those who haven't yet made their move.