The Luxury Fashion Slingshot Into The Metaverse. Another Brand Enters The Virtual World To Blow Up Revenue
Last month, data from Dune Analytics revealed that major brands including Nike, Gucci, Dolce & Gabbana, Adidas, and Tiffany & Co. have amassed $260 million in revenue from NFTs.
This makes it clear why Hermes has also decided to enter the virtual world.
The Paris fashion house is preparing to enter the parallel world with a project that will lead it to explore the wide range of opportunities that Web3 offers to high fashion.
This was revealed by Michael Kondoudis, a lawyer specializing in trademarks who announced the patent application filed by the descendants of Thierry Hermès.
THE STORY OF HERMES
Today, Hermes has a turnover of almost 9 billion. But the history of Hermes began in 1837 when Thierry Hermès founded a horse saddlery in Paris.
During its first 100 years of life, the company only produced items for animals, but in the 1930s it started making bags and suitcases for men and women.
Subsequently, the iconic Birkin Bag and Kelly Bag were introduced which have traveled around the world, becoming must-have items for women all over the planet.
Over the years, the company has continued to expand. Today, it is a real giant in the sector with over 14,000 stores in more than 100 countries.
THE LATEST CREATION OF THE MAISON
Hermes’ decision to explore the world of NFT comes after the creation of his latest masterpiece: the Birkin B24 Bag in collaboration with Ethereum co-founder Vitalik Buterin.
The bag was designed to be worn in the virtual world and has already been sold at auction for the modest sum of 113 ETH, or about 170 thousand dollars.
The entry into the Metaverse represents an important step for Hermes, which hopes to benefit from this new expanding market.
It is not the only luxury brand to have taken this path: Louis Vuitton has recently presented its collection of NFTs, in the form of digital works of art.
This is a real paradigm shift that will lead the big luxury brands to make big sales thanks to the virtual world.
Sifting deeper, we learn the brand’s programs include the creation of a platform dedicated to gaming, as well as the development of an infrastructure for the on-chain purchase of Hermès products.
GUCCI HAS BEEN ON TRACK
One of the many examples to cite is undoubtedly the one offered by Gucci, a brand that already accepts Ethereum, Bitcoin, and other assets for purchase in some of its selected boutiques and is a trailblazer for a constantly evolving project.
The haute couture house based in Florence, Italy has certainly ended up in the observatory of those who, in Hermès, is in charge of guiding its evolution in a Web3 key: the Italian Maison has long been involved in the Metaverse.
In this regard, we recall the extraordinary collection of virtual jewels launched by Gucci as part of the famous decentraland blockchain game.
THE EMPLOYMENT CREATED BY THE METAVERSE
So far, much of the profits generated by the Metaverse have benefited start-ups and emerging artists. But with the entry of big brands like Hermes and Gucci, it’s easy to predict a race to take over the virtual territory by the richest and most powerful companies in the world.
A gold rush will lead the latter to secure a substantial slice of the NFT market, with all the resulting profit opportunities.
It’s an interesting asset if it weren’t because it’s currently unknown to most people. That is, the money circulating to us is already a lot, but the opportunities to do business are not lacking because the mass is not yet interested in it, a recent study claims.
FEW KNOW THE METAVERSE
According to analysts and companies in the sector, the Metaverse will blossom in five or ten years, it is strange to discover that very few still know what the Metaverse really is.
– There is an analysis conducted by Forrester Research in the United States, shows that only 23% of adults truly know the Metaverse or are slightly familiar with it.
– The results of the research involved just under 25,000 typical consumers (a statistically significant number).
– The results worsen if we move to Europe: in Germany, for example, the Metaverse is known only by 14% of adults.
Americus Reed, professor of marketing at the University of Pennsylvania, commented on the findings, explaining that:
“I think the biggest challenge will be getting to know people. Nobody really knows what it is and it’s very difficult for people to understand. Average users, struggle to understand its value. Many ask themselves: why should I care?”
THE METAVERSE IS AN ECONOMY INTENDED TO INCREASE ITS GROWTH
It goes without saying if it is a new and virgin territory from an economic point of view, there are endless business opportunities that await anyone who wants to take advantage of them in time.
The big luxury brands certainly do not intend to be caught unprepared when the Metaverse becomes a consolidated reality. On the contrary: as we have already said, many have already taken this path and invested in its future.
Just think, in just one year, the value of the NFT market has grown exponentially: from only $20 million to the current 500 million.
These numbers are destined to rise a lot in the next few years, thanks to the entry into the market of new players and the spread of awareness of the existence of this parallel reality.
What will happen when ordinary people also begin to take an interest in the Metaverse and become familiar with it?
What happens with today’s internet and social networks: it is a phenomenon that starts with a few “early adopters” spreading exponentially like wildfire.
Companies today cannot help but be on social media and on the web. As it results in further economies and jobs.
In new, Facebook or Google is ready to explode. Among these, I think of The Sandbox or, Decentraland or Somnium Space.
What does all this mean for us, mere mortals who live outside the Metaverse?
We must learn everything about it and, understand it thoroughly. Because it is a phenomenon destined to change the way we work, do business, and entertain social relationships.
While these new technologies open the doors to really interesting earning opportunities, it is equally true that this is an uncharted territory full of pitfalls.
For this reason, anyone who wants to jump into the Metaverse business must be ready to deal with the volatility of the market, the thousand unknowns, and the risks it entails.
But if you are willing to invest the time and energy to learn how to navigate this new world, the rewards could be very interesting indeed.
As we have said, it is a market that is still under development and the opportunities are destined to grow exponentially in the coming years.
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