ArticleWhy should people invest in Metaverse today?
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Why should people invest in Metaverse today?

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Talk of the Metaverse has been ubiquitous over the past several months. But it is not just a buzzword. It’s facilitating a new way for people to interact on the internet, manifesting now in gaming and social platforms. It’s often portrayed as the next frontier in the technology industry. The Metaverse is a collection of digital platforms focused on Virtual and Augmented Reality opportunities. But some people envision the Metaverse including hardware, primarily headsets and smartphones.

Although no one can predict the future, many are making big bets on the future of the Metaverse. In 2021 alone, Meta spent $10 billion dollars designing its own Metaverse. That’s an immense amount of capital to invest in the future of the Metaverse.1

According to a new report by McKinsey and Co, the Metaverse could be worth $5 trillion by 2030. According to the report, e-commerce is seen as offering the greatest opportunity with a forecasted market value of $2.6 trillion, while virtual learning is expected to hit $270 billion, followed by advertising-$206 billion, and gaming with $105 billion.2

 

In the fashion and luxury industries, several brands have decided to invest in the Metaverse and have launched their first marketing operations. These operations remain technically complex, and their implementation requires elaborate marketing plans, especially collaborations between brands.
 
Fashion & Luxury Brands approaching Metaverse in different directions:
  1. Betting on a single virtual universe (Roblox, Fortnite);
  2. Developing their universe (Balenciaga);
  3. Optimising solutions based on Augmented Reality (Immaterial Reality in our case).
Metaverse initiatives in the fashion and luxury sectors start from the generation of additional revenue (Gucci, Nike, Vans), conquering new brand territories (Balenciaga, Gémo) & simplifying the customer experience (Luis Vuitton, Zara).

However, 70 % of C-suite technology executives at large enterprises are exploring and investing in digital twins. This interest, combined with rapidly advancing supportive technologies, is driving market estimates for digital-twin investments of more than $48 billion by 2026—a 58 % compound annual growth rate.3  We at Sense – immaterial Reality define the way of fashion & luxury brands as “Immaterial Twin today, Metaverse tomorrow” or “From one Twin to the Metaverse”.

When companies interconnect two or more immaterial twins, they can simulate the complex relationships among different entities and generate richer behavioural insights for even more sophisticated use cases and greater value. As organizations begin to connect these multiple twins of different business domains, functions, and operational ecosystems, the enterprise Metaverse could start to take shape. Finally, companies can add a unified consumption layer to give employees and customers integrated, immersive experiences that leverage Immaterial and Virtual Reality.

Inside Sense, Metaverse is accompanied by a path that is integrated within the client’s strategy. Our aim is to recognise the real business of the virtual world. Sense’s main frontier for brands is to translate Metaverse activities into sustainable revenue streams. Fashion companies focused on immaterial innovation and commercialisation could generate more than 5 % of revenues from virtual activities over the next two to five years. And around 30 % of the global spending on virtual goods (which has reached an estimated $110 billion in 2021) is attributed to virtual fashion.4

Finally, the Metaverse has great potential in marketing. Fashion & Luxury Brands that plan and execute now will benefit most from the future of the Metaverse. The size of the audience grows exponentially when you move the experience online. Think about car shows and the potential reach if they moved to the Metaverse. Put on some virtual reality glasses and “sit” in a car to experience and see it from the inside out. These types of events could be very creatively done. 
 
Remember to think big as you begin to think about the best way to engage with Web3. Even the sky isn’t the limit in the Metaverse.
  1. Forbes Digital Assets “Metaverse cryptocurrencies and ETFs” https://www.forbes.com/sites/qai/2022/09/18/what-is-the-metaverse-today-heres-what-investors-need-to-know/?sh=754bea0e3354
  2. McKinsey and Company, “Value creation in the Metaverse” https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/value-creation-in-the-metaverse
  3. “Digital Twin Market worth $48.2 billion by 2026,” Markets and Markets https://www.marketsandmarkets.com/Market-Reports/digital-twin-market-225269522.html?gclid=Cj0KCQiAm5ycBhCXARIsAPldzoX1wfYKv7T3MCpdbbvyW298WYqWOU-WM36ZVkLnS3btbpcGPI-4ADUaAmd0EALw_wcB
  4. Business Of Fashion, “Fashion’s Metaverse Reality Check”https://www.businessoffashion.com/articles/technology/state-of-fashion-technology-report-metaverse-digital-goods/

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