Will luxury brands drive the growth of virtual goods?

The purchase of virtual goods in virtual worlds is increasing and most worlds now incorporate this element into their propositions. But which categories or types of products will be most successful from revenue-generation and demand perspectives?

Backing up on this point slightly, let’s talk about the area of revenue sharing for brands in virtual worlds. By this, I mean real world brands earning out of virtual transactions.

This is a concept I think we’ll see a lot more of in the virtual worlds sector. And it makes sense. If a company brings their brand into a third-party world and part of the offering is to allow residents/users to purchase virtual branded items, then surely the brand is entitled to a share of revenue. I think we’re about six months away from seeing this type of arrangement take hold.

Back to luxury brands.

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Virtual dress sells for $1,700 (that’s real money)

Last week I wrote about how luxury brands may hold the key to stimulating and driving the virtual goods (clothing) sector [readWill luxury brands drive the growth of virtual goods?].

New World Notes reports today that as part of the American Cancer Society’s Relay for Life campaign in Second Life, a virtual evening gown made by Eshi Otawara was bought for L$460,000 – approx. $1,700. Impressive – exciting – strange? – expect a whole lot more of this.

Two points:

1. People are starting to pay larger sums for virtual goods

2. Non-profits can successfully leverage virtual worlds for fund-raising

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