Tapping into the metaverse – a $5 trillion beauty opportunity

by | Jun 12, 2023

The Red Tree, a leading international beauty brand consultancy, has launched its Metaverse whitepaper – a one-stop shop for understanding the social and economic influence of the digital marketing solutions of the future

From AR filters to non-fungible tokens, you might have gotten your head around some of the metaverse, but very few are true experts when it comes to Web 3.0. 

To help you master your understanding and realise the opportunities of the metaverse, Red Tree’s whitepaper unpicks all of the terms you need to know before taking your online strategy to new worlds. 

Released just in time for Metaverse Beauty Week, which is running from the 12th to the 17th of June, the whitepaper will help you to realise the importance of digital development for future growth. 

Here’s what we learnt from the whitepaper… 

The metaverse could catalyse new – and important – revenue opportunities for beauty 

By 2026, the metaverse market will be worth $758.6bn, with the beauty industry supporting $5 trillion worth of value by 2030. This growth comes off the back of the boom of social shopping on platforms like TikTok and Snapchat and the popularity of virtual influencers.

In-app purchases aren’t the only source of revenue for beauty brands, AR filters, 3D design and Direct-to-Avatar skins are becoming increasingly influential for conglomerates and emerging brands alike. 

Non-fungible tokens really do work 

‘NFTs are unique tokens that cannot be replaced with something else. They can digitally represent any asset, including online-only assets like digital artwork or physical assets such as real estate,’ reads the report – clearly defining a digital system which has had brands scratching their heads for some time. 

From Shisedo’s #AliveWithBeauty campaign, which sees five female pioneers work with the brand on Web 3.0 wellness to the 17 trademark applications filed by L’Oréal relating to the metaverse, NFTs are still making waves. In fact, the whitepaper highlights that $22bn worth of NFT sales were made in 2021. 

The metaverse is all about community 

Sure, social shopping provides a direct revenue stream for brands, however, a majority of the digital strategies that come to life in Web 3.0 are all about your brand community – which is more important than ever these days. 

Whether customers choose to paint the cheeks of their avatar with NFT blusher – something that still feels too sci-fi – or they follow a virtual influencer that you harness for a brand deal, the metaverse is about building brand awareness and nurturing your brand community in its new, exciting, home. 

You can read the whitepaper here

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