In a new Web3 study, Publicis Groupe digital agency Razorfish seeks to understand consumer behavior surrounding virtual goods, finding that 71% of respondents see virtual goods as a luxury item and believe they are equal to or more valuable than physical goods.
Virtual goods include intangible goods such as NFTs, video games “skins,” mobile game purchases, and digital clothing collections for avatars -- digital items which could present an opportunity for retailers to find new connection points and revenue streams with consumers.
Notably, all respondents in the study currently own or have owned a virtual good, and therefore are considered “early adopters.” Half of this group identified as Gen Y, while 26% identified as Gen X, 21% as Gen Z, and 3% as Boomers. Thirty-five percent were female, while 65% were male.
Forty percent of these early adopters said they are likely to spend at least a quarter of their discretionary income on virtual goods, and 35% have already dropped at least $1,000 on their virtual portfolio. A majority anticipate they will increase their spending on virtual goods within the next year.
A quarter of the 71% of respondents who see virtual goods are equal to or more valuable than physical goods are looking for novel ways to engage with brands’ products and experiences -- especially in a community setting -- while 43% would be willing to reconsider a brand from which they don’t normally buy and 35% would be willing to buy a physical good from a brand they don’t usually buy from.
“The rise of Web3 is exciting because of the amazing potential it has to revolutionize how people engage with the digital world,” says Cristina Lawrence, executive vice president, consumer and content experience at Razorfish.
The report shows that value is taking on new meaning in the virtual space.
“For mass brands in particular, this signals an opportunity to create new products, experiences, and services,” Razorfish says. “Virtual goods offer an opportunity to reach beyond the functional and expected, engaging people on a more emotional level by helping them curate their virtual identity and persona.”
Virtual goods may also lend to long-term brand building, as brands can use Web3 spaces to build relationships with loyal consumers by rewarding them via a seamless virtual experience.
Razorfish’s report comes soon after the agency unveiled new Web3 brand-offerings -- including Reef, Wave and Drop -- in September, each one aiming to help brands connect with customers in emerging Web3 spaces.
Kejserens nye klæder.
I've got a whole new set of clothes for the Emperor open for bidding.