According to a recent report by Chalhoub Group, a Middle East’s leading retail operator, metaverse fashion and luxury retail will account for $50 billion by 2030.
Data acquired from 1,600 customers and discussions with key players in the GCC show that luxury fashion brands are increasingly approaching Web3 through various use cases.
Virtual try-on, cryptocurrency payments, digital gifts, and virtual stores are just a few of the most popular efforts undertaken by brands like Prada, Gucci, and Dior on some of the most popular metaverse platforms, including Roblox, The Sandbox, and Decentraland.
According to the research, GCC luxury customers are well-versed in crypto (77%), NFTs (49%), and the metaverse (46%), with 48% having previously invested in crypto and 23% participating in NFTs and the metaverse.
Regarding customer expectations, 87% expect favorite brands to be present in the metaverse, while 89% want to preview items in the metaverse.
As a result, fashion brands must match customer expectations by implementing strategies that include offering innovative solutions, such as crypto payments, new ways to express identity, and user participation in developing new products.
These efforts would also serve as a bridge to attract younger generations, who, according to a recent Roblox survey, believe that the metaverse and virtual clothes for avatars allow them to express themselves more freely than or comparable to in real life.
The metaverse and Web3 in general seem to offer consumers new ways to shop while boosting social interaction, removing conventional barriers associated with in-person shopping, such as traffic and a lack of options within short distances. These advantages are expected to develop as technology and VR-enabled devices evolve.