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- Metaverse is believed to be worth $5 trillion by 2030.
- Many industries are heavily investing in metaverse R&D.
Metaverse is in its early stages, destined for greater heights, and could greatly impact society. Almost everyone is excited about its future prospects. Moreover, the facilities required for its further development are already in place. Growth in Artificial Intelligence is bound to affect the growth in metaverse as both are in a symbiotic relationship.
Multiple industries are embracing metaverse, largely due to its supposed economic impact. If estimates are to be believed, this technology could be valued at almost $5 trillion by 2030.
How Metaverse Will Impact Different Sectors
A report from McKinsey & Co. suggests that metaverse will have noticeable influence on various sectors including Banking, Insurance, Media, Retail, Transportation among others. It is expected to generate up to 4 to $5 trillion by 2030. Multiple sectors have already involved the technology in their business module, and with the possibilities the technology promises, many more might follow suit.
Multiple Use Cases of Metaverse
The possibilities of metaverse are endless and companies and industries of various sectors are experimenting relentlessly. For instance, in terms of product marketing, Coca-Cola launched some digital assets, as part of their marketing campaign, like NFT auctions on International Friendship Day.
For customer engagement, fashion brand Gucci launched Gucci Garden on Roblox, a virtual space where players can purchase Gucci gear for their avatars and many more possibilities. Going into next-generation commerce, AnamXR uses game engine technologies to create virtual e-commerce platforms for the immersive experience.
To fuel brand loyalty, Adidas’ Bored Apr Yacht Club released certain NFTs to provide its owner physical access to new launches. For recruitment purposes, Havas Group created a village in Sandbox to host recruitment services for enhanced onboarding experiences. BMW plans to launch digital twins of their design products and entire factories. Wonderland will allow users to travel to fantasy destinations.
Impact on Fashion & Luxury Industry
The fashion and luxury industry is rocking the digital arena, with numerous online shopping options. Moreover, it is one of the sectors that can be both virtual and physical, and this ability makes it more promising for the metaverse’s expansion. The upcoming Decentraland’s Metaverse Fashion Week, which will be held from March 28-31, 2023, enforces this technology’s great possibilities for the fashion, apparel, and luxury industry.
What is the Current Scenario?
The nascent technology is being experimented with by the fashion industry. They have launched virtual items of clothing in games like Roblox, etc. Balenciaga released their new collection of gear and apparel in Fortnite and in the real world, simultaneously. The launch led to a 40% increase in brand searches in just two days.
Gucci also sold virtual versions of their Dionysus bags for around $6 on Roblox, which later sold for prices of around $40,000 per bag. Adidas’ NFT collaboration with the Bored Ape Yacht Club had more than $100 million in sales. Gucci, Adidas, and the Hundreds used NFTs to strengthen brand loyalty, providing holders early access to the latest collections.
Engaging in the metaverse also helps these brands fight counterfeiting; the inherent qualities of blockchain technology facilitate immutability and authentication. Luxury brands invest heavily in developing immersive virtual spaces, which anyone from anywhere can access to get a boutique-like experience. Of course, the metaverse is still in its infancy and already garnering so much attention from various industries. It is bound to greatly impact society as we know it.
Disclaimer:
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
