Metaverse: a $50 bln revenue opportunity for luxury – MS

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MILAN, Nov 16 (Businesshala) – Digital demand for fashion and luxury brands is expected to grow from current low levels and result in additional sales for the industry reaching $50 billion by 2030, according to Morgan Stanley.

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“The revenue stream from digital means for luxury brands is negligible. We think this is about to change,” US investment bank strategists wrote in a note on Tuesday.

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“The metaverse may take years to develop, however, NFTs and social gaming (for example, online games and concerts attended by avatars of people) present two near-term opportunities for luxury brands,” Said it.

According to Morgan Stanley, NFTs (fungible tokens) and social gaming could expand the luxury conglomerate’s total addressable market by more than 10% in eight years’ time and increase the industry’s earnings before interest and taxes by about 25%. Huh.

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Noting how one in five Roblox gamers updates their avatars daily, it said the luxury brand is exploring multiple collaborations with gaming and the Metaverse platform.

It also said that Italian brand Dolce & Gabbana’s recent sale of nine NFTs for $5.7 million, albeit small, highlights the huge potential for virtual and hybrid luxury goods in the years to come.

“We expect the whole sector to benefit from the arrival of the Metaverse, but soft luxury brands (ready-to-wear, leather goods, footwear, etc.) are positioned particularly well as opposed to hard luxury (jewellery and watches). See me,” it said.

Reporting by Danilo Masoni; Editing by Saikat Chatterjee

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