SINGAPORE — Virtual goods represent an untapped opportunity for brands to expand their footprint in Asia and more effectively connect with the world’s largest youth population, a study from Virtue, the creative agency powered by VICE, has revealed.
With surging interest in the metaverse and NFTs across APAC, Virtue’s survey of 3,000 consumers found virtual goods are no longer considered niche purchases, with more than eight in ten (82%) of respondents having already purchased a virtual good and less than five percent saying they had no intention of buying a virtual product.
Across all virtual goods, fashion is a constant theme. More than nine in ten (94%) say they see digital fashion becoming mainstream, of which 67 percent predict it will become mainstream in the next five years. One in three said they would purchase full virtual outfits.
Huiwen Tow, Head of Strategy at Virtue APAC said while virtual purchases are currently predominantly manifesting in fashion, there are significant opportunities in categories such as beauty and alcohol.
“Despite all the hype around the fortunes that can be made from investing in virtual goods, the biggest motivator for many buyers is identity,” Tow said. “For a region with such a large youth population, this represents a massive opportunity for brands to play a relevant and influential role in helping a coming-of-age audience express their unique individuality and deep exploration of other potential selves beyond digital twinning.
“This is true for all categories where image and identity are amongst the biggest factors in driving brand preference. While we are seeing some moves being made in this space, the market remains in its infancy and brands that act quickly will reap the rewards from an audience who crave authenticity and uniqueness.”
Digital fashion has introduced a new perspective for design needs, one that is no longer reliant on functional necessities, but one that prioritises emotional and social needs, with one in two of the global respondents saying digital fashion will make fashion more creative.
Tow added: “In a region where creativity is fast emerging as an aspirational value in the mainstream, this represents an opportunity for brands to connect with the emerging creative class in Asia to give them a platform to experiment and showcase their unique talents, as well as forge a sense of belonging and community. The idea that a digital asset could be a passport to multiple brand experiences is a way for brands to extend the customer relationship in ways unlike before.
“Virtual goods represent an untapped opportunity to extend and expand the footprint of brands amongst their audiences. The good news is that brands don’t have to go to Decentraland or Fortnite to tap on this opportunity. The best strategy is to play in spaces where people are familiar – filters for social media and virtual events are easy accessible spaces to start.”
The ‘Screenwear Paper’ was developed by the Virtue Futures team, a dedicated division within Virtue Worldwide that helps brands innovate in new platforms, technologies, and spaces in culturally relevant ways, in partnership with THE DEMATERIALISED, the digital marketplace creating a new reality for fashion.
For access to the full report, click the link here.
