A number of luxury brands ranging from Gucci, Louis Vuitton Balenciaga pie began its expansion into the virtual world of Metaverse developed by Facebook CEO, Mark Zuckerberg. Those brands are also called to be launching special collections that can only be purchased on Metaverse.
Because the collection is virtual and the transaction is also done di marketplace virtual, fashion companies like LV and Gucci barely charge any fees for the products they sell.
LV, Gucci to Balenciaga Starts Expansion to Metaverse
Because, at Metaverse, they only sell virt luxury which is a digital item. Thus, the profit achieved by the fashion company can reach 100%. Whereas, in the real world, production processes for luxury goods can take days and cost high raw materials.
As quoted by The Richest, the first virtual item to Sold on Metaverse is a silver-colored sweater that sold on December 12, 2020. This product, which is only a digital render, sells for US$137 or almost IDR 2 million.
Then, what are those virtual products for?
Every user in Metaverse has an avatar that himself in the virtual world. Like in the real world, avatars can buy things according to their tastes and abilities, including Gucci’s luxury item fashion.
Virtually every product that can be purchased in the real world is available in Metaverse virtual marketplace. Upon successful purchase of virtual goods, users will get Non-fungible Tokens (NFTs) that can be exchanged for real money.
Handbag sales from Gucci fashion houses in Metaverse called to have surpassed sales of similar products in their physical stores. This bodes the economic potential of a virtual world.