UAE-based luxury retailer Chalhoub Group has released its insightful report GCC State of the Metaverse and its Potential for Luxury Retail which spells out core implications of the metaverse for luxury retail, its potential opportunities in the GCC and consumer sentiment towards it.
According to some analyst reports and affiliated with Chalhoub Group, the metaverse industry is worth $40-$65 billion and is predicted to surpass $13 trillion by 2030, with fashion and luxury retail accounting for $50 billion.
Chalhoub Group surveyed 1,600 luxury consumers across the GCC to gauge the actual adoption rate of crypto, NFTs and the potential consumer sentiments towards the phenomena. The results demonstrate heightened awareness levels regarding crypto— 77 per cent— alongside 49 per cent and 46 per cent regarding NFTs and the metaverse correspondingly. The trend is mostly driven by young affluent males from the UAE, Saudi Arabia and Oman.
The survey finds that 89 per cent of the GCC respondents would like to try out products in the metaverse, while 71 per cent claim to be already engrossed in the virtual experience.
Regarding adoption rates, 84 per cent of those surveyed have already invested in crypto, and 23 per cent admit to be fully engaged with NFTs and metaverse platforms.
Eighty-seven per cent of luxury consumers seem to have clear expectations for their preferred brands to be featured in the metaverse. At the same time, the overwhelming majority—89 per cent—wish to test out products in the digital universe.
Equally important, the report findings underlined that the GCC has the solid foundations to buoy metaverse initiatives, spurred by tech-savvy youngsters.
Other crucial factors responsible for the favourable environment for metaverse development include high disposable income in the GCC, the regional enterprises’ accelerating experimentation with the metaverse and mushrooming start-ups worth more than $500 million of funding.
GCC governments are also tapping into the metaverse potential to enhance their digital economy and boost virtual job opportunities in the region. A case in point is Dubai’s recent approval of the new phase of the Emirate’s Metaverse Strategy which strives to create 40,000 virtual jobs and bring $4 billion to the local economy over the next five years.
Chief strategy officer at Chalhoub Group, Jasmina Banda, said: “We believe that the GCC exhibits the right elements for the implementation of the metaverse strategies.
“The region’s vibrant innovation ecosystem paired with empowering regulatory framework provides a solid foundation upon which the metaverse can be explored further. With this growth potential, it is only natural for global luxury groups to experiment with the metaverse and adopt it gradually across the full customer journey from awareness to retention.”
As of today, Chalhoub Group has created various Web3 initiatives such as the NFT launch of Christofle and a recent phygital NFT for the limited-edition sneaker by Level Shoes in a tie-up with Lanvin.
“The GCC is known for its young and tech-savvy consumers who are very knowledgeable about the metaverse, while being luxury enthusiasts,” said head of corporate innovation at Chalhoub Group, Nick Vinckier.
“For us at Chalhoub Group, we recognise that leveraging the power of Web3 enables us to reinvent the entire customer journey whether it’s building awareness, increasing brand engagement, enhancing conversion, nurturing loyalty or launching new business models. We deployed multiple experiments in the last 12 months, and we’re gradually increasing the velocity and size of our future initiatives.”
