The metaverse and luxury fashion are on a collision course, but will the outcome be long lasting or help improve sustainability? The luxury fashion market is predicted to increase to $278 billion by 2031 (Statista). The metaverse’s predicted market size is reported to grow to $1.8 trillion by 2030 (Acumen Research). Let’s take a deeper look at how some brands are using the metaverse to stay relevant while positioning themselves to tap into the sustainable solutions the metaverse can provide.
According to the Business of Fashion (BOF) 50% of consumers are expressing an interest in buying a digital asset and although driven by a younger audience, 72% of consumers have entered a virtual world within the last year.
Luxury in the Metaverse
1. Gucci and Roblox
Visitors were able to try on and buy digital products for their avatars during a two-week virtual art exhibition. This collaboration also produced a Gucci Garden space where users could discover different brand campaigns.
Players not only had the opportunity to buy Balenciaga items, but they also get to hang out together in a newly created hub.
3. Louis Vuitton
Creating a clever way to celebrate a major birthday, Louis Vuitton launched a treasure hunt for players to find 200 birthday candles along with the opportunity to get free non-fungible tokens (NFTs).
As reported by BOF, in the near future, up to 15% of our wardrobe will be digital. This high adoption rate allows luxury brands access to new sustainable solutions provided by the metaverse.
Digital Fashion and Metaverse Benefits
In summary, the metaverse allows for luxury brands to better measure their carbon footprint, maintain relevancy, and build new revenue streams all while tapping into a younger audience. The crash course of the metaverse and luxury fashion may very well provide a win-win for luxury brands, the environment, and finally, the consumer.
Learn how to invest in your future experiences with Fount ETFs
The Fount Metaverse ETF (MTVR)
The Fount Metaverse ETF (MTVR) seeks to provide investment results that, before fees and expenses, generally correspond to the performance of the Fount Metaverse Index. The index was designed to measure the performance of companies that develop, manufacture, distribute, or sell products related to metaverse technology.
MTVR may be an attractive vehicle for investors looking to invest in the metaverse.
For a full list of MTVR holdings, please click here.
The Fount Subscription Economy ETF (SUBS)
The Fount Subscription Economy ETF (SUBS) seeks to provide investment results that, before fees and expenses, generally correspond to the total return performance of the Fount Subscription Economy Index. The Index was designed to measure the performance of companies engaged in the business of providing subscription services, i.e., companies that sell products or services for recurring subscription revenue.
SUBS may invest in companies that offer subscription-based pricing models, including those in the technology hardware industry.
For a list of SUBS holdings, please click here.
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call 855-425-7426 or visit our website at www.fountetfs.com. Read the prospectus or summary prospectus carefully before investing.
Exchange Traded Concepts, LLC. serves as the investment advisor to the Funds. The Funds are distributed by SEI Investments Distribution Co., (SIDCO) 1 Freedom Valley Drive, Oaks, PA 19456. SIDCO is not affiliated with Exchange Traded Concepts, LLC. or Fount Investment Co. Ltd.
Investing involves risk, including possible loss of principal. There is no guarantee the Funds will achieve their stated objectives. In addition to the normal risks associated with investing, international investments may involve the risk of capital loss from unfavorable fluctuation in currency values, differences in generally accepted accounting principles, or social, economic, or political instability in other nations. Emerging markets involve heightened risks related to the same factors, as well as increased volatility and lower trading volume.
The Funds’ concentration in an industry or sector can increase the impact of, and potential losses associated with, the risks from investing in those industries/sectors. For MTVR, the Fund may be concentrated in the entertainment and interactive media & services industries. The entertainment industry is highly competitive and relies on consumer spending and the availability of disposable income for success, which may cause the prices of the securities of companies to fluctuate widely. The prices of the securities of companies in the interactive media & services industry are closely tied to the overall economy's performance. Changes in general economic growth, consumer confidence, and consumer spending may affect them. MTVR may also be subject to the specific risks associated with metaverse companies. These risks include but are not limited to small or limited markets, changes in business cycles, world economic growth, technological progress, rapid obsolescence, and government regulation. Smaller, start-up companies tend to be more volatile than securities of companies that do not rely heavily on technology. Metaverse Companies may rely on a combination of patents, copyrights, trademarks, and trade secret laws to establish and protect their proprietary rights. There can be no assurance that these steps will be adequate to prevent the misappropriation of their technology or that competitors will not develop technologies that are equivalent or superior to such companies’ technology.
For SUBS, the Fund may be concentrated in the software industry. Technological changes, pricing, retaining skilled employees, changes in demand, research & development, and product obsolescence can affect the profitability of software companies causing fluctuations in the market price of company securities.
Both Funds are subject to communication services sector risk, which can involve the same risks as being concentrated in the software industry. Network security breaches, potential proprietary or consumer information theft, or service disruption can negatively affect companies’ stock prices.
The Funds are non-diversified. The Funds are new and have limited operating histories for investors to evaluate. New and smaller funds may not attract sufficient assets to achieve investment and trading efficiencies. In addition to the normal risks associated with investing, investments in smaller companies typically exhibit higher volatility.