In case you missed it, digital fashion is set to be the next big lucrative venture for the fashion industry. With Facebook’s rebrand to Meta already attracting the attention of luxury brands, demand for fashion and luxury brands is expected to grow from current low levels and result in extra sales for the industry that could reach $50 billion by 2030, according to Morgan Stanley.
“Revenue streams from digital mediums for luxury brands are negligible… We think this is about to change,” strategists at the US investment bank wrote in a note on Tuesday.
This news is unsurprising when noting the fact that one in five Roblox gamers update their avatars daily, suggesting luxury brands will be exploring a number of collaborations with gaming and Metaverse platforms.
Recent sales of NFTs for US $5.7 million in the luxury fashion world have also highlighted the potential for capitalising on virtual luxury goods over the coming years. “We expect the whole sector to benefit from the advent of the Metaverse, but see the soft luxury brands (ready-to-wear, leather goods, shoes, etc.) as particularly well positioned as opposed to hard luxury (jewellery and watches),” Morgan Stanley said.
It seems almost certain that fashion is about to take a profitable swerve into the digital realm, whether we like it or not.