Why would someone pay hundreds of dollars for clothing that they’ll never get to wear in the real world?
The funny part of this story is… Gamers already have a long-standing history of using clothes and accessories to create their virtual identities, and there’s every suggestion that metaverse users will do the exact same thing.
Executives of top brands are taking the trend very seriously and are moving quickly to capitalize on the opportunity to sell virtual versions of their products to folks in the metaverse.
In the new world of the metaverse – a tireless, shared virtual world that users can access through various devices and platforms – in this world avatars are everything. And that means some users will pay big money to outfit their avatar in the coolest stuff.
How Does It Work?
Most virtual goods are released in limited amounts, and users who buy them receive an NFT as a virtual certification of ownership.
The Benefits of Virtual Goods for Brands
Eradicate Overstock. Virtual goods can solve the problem of oversupply for brands.
The most brand has overproduction or overstock, and noticeably has end-of-season stock, especially in the fashion industry. So you start reducing prices, and that’s an endless story. You see 90% reductions in outlets now. That devalues the worth of the brand.
Now by selling goods in the metaverse brands won’t have to run as many sales with deep discounts to unload their overstock.
Huge margins. Creating goods in the metaverse doesn't take up any real raw materials, and labor is insignificant. That means selling virtual goods equals almost all profit. Designers also have a huge amount of creative leeway in creating virtual goods because the boundaries normally imposed by market sensibleness don’t apply.
Businesses can bring old products back. Most of the top brands have decades of archival products that they can convert into virtual assets, providing a new digital revenue stream with little investment.
Our metaverse consultants even say that not everything companies create in the metaverse needs to be new. They can pull from their many years of history and tradition and introduce their legacy to new generations. Nostalgia is a very powerful emotion, and at the end of the day, creativity always wins.
Sustained resale revenue. Many of the smart certificates or NFTs for virtual items contain royalty fees or revenue shares on future dealings when the item changes hands. That means ongoing income for the original creator and fewer difficulties with knockoffs.
To understand more about doing business in the metaverse and technology trends that are transforming today’s top companies, contact us.