4 December 2023
November saw a number of developments in the intersection between the metaverse and the world of high fashion as the use case for metaverse applications in high-end settings continues to build.
Beauty brand Lancôme debuted its Lancôme Happiverse in November. This immersive platform invites users to explore the Louvre Museum in Paris within the metaverse using personalized avatars, creating a distinctive intersection of art and beauty. Users engage in a variety of activities, play games, and unlock exclusive rewards, including a 15% discount for online Lancôme purchases.
The implications of Lancôme’s foray into the metaverse extend beyond the beauty sector. The collaboration of gaming elements and virtual rewards within the Happiverse demonstrates the opportunities for potential collaborations between the gaming and beauty industries by presenting innovative experiences for players. Furthermore, the ability to create and shop Happiverse looks for avatars introduces a fusion of virtual and physical experiences, creating a new space for the fashion industry to encourage personalized self-expression. The Lancôme Happiverse is thus not only a transformative force in beauty but is also a harbinger of broader trends in digital engagement and self-expression.1
Likewise, Gucci extended its reach into the metaverse by introducing “Gucci Cosmos Land,” an exploration of Gucci’s London-based historical exhibition, Cosmos, within The Sandbox virtual world game this November. This metaverse experience provides an interactive tour of Gucci’s historical journey and iconic designs, providing global accessibility through this virtual experience. The virtual journey guides users through decades of Gucci’s creative evolution, showcasing themes and designs previously unseen.
Gucci’s presence in the metaverse is far from novel. The luxury brand previously launched the Gucci Vault experience and showcased its Milan Fashion Week on various metaverse platforms beginning in 2022.2
Company Specific Updates
In its Q3 earnings report, Roblox exceeded expectations with a significant surge in bookings, a crucial metric indicating increased spending within the platform. Bookings, driven especially by Europe and Asia, reached $839.5 million, surpassing analyst projections of $822.2 million.
Notably, Roblox witnessed substantial growth in daily active users, reaching 70.2 million—a 20% YoY increase. The platform’s revenue also outpaced expectations, totaling $713.2 million compared to the anticipated $686 million. This robust financial performance suggests a potential turning point for Roblox, indicating heightened user engagement and a notable increase in user spending on virtual currency through in-game purchases.3
Roblox is also cognizant of the necessity of evolving alongside its maturing user base. To align with this evolution, the company is transitioning towards more photorealistic 3D simulations, envisioning a metaverse where realistic avatars engage in activities like chatting, dancing, and learning in true-to-life environments. Roblox has implemented facial tracking, voice chat, and enhanced avatar customization to create more realistic virtual representations, as well as introduced Roblox Connect, an avatar phone call product, highlighting its commitment to innovative user interactions within the evolving metaverse landscape.4
Matterport, the leading spatial data company digitizing the built environment, revealed robust Q3 results, with subscription revenue surging to $22.9 million, marking a 20% year-over-year increase and surpassing guidance. Total revenue reached $40.6 million, exceeding the high end of expectations. The company’s subscriber base expanded to 887,000, reflecting a substantial 35% YoY growth. Matterport’s Spaces Under Management surged to 11.1 million, up 28% YoY.
With 35 billion square feet of spaces digitized, Matterport is leading its scanning competitors by 100x and counts 25% of Fortune 1000 companies as subscribers. Serving diverse verticals, including real estate, AEC, facilities management, travel, hospitality, and insurance, Matterport’s digital twins will be key to photorealistic metaverse journeys through real-world spaces.5
Investing in the Metaverse with MESH ETF
Looking to invest in the Metaverse? Consider the Evolve Metaverse ETF (MESH ETF), Canada’s first metaverse ETF. MESH ETF provides investors with an actively managed diversified portfolio of companies involved in the development of the metaverse. To learn more about MESH ETF, please click here: https://evolveetfs.com/mesh/.
Portfolio Strategy and Activity
For the month, Coinbase Global Inc made the largest contribution to the Fund, followed by Snap Inc and Roblox Corp. The largest detractors to performance for the month were Sea Ltd, followed by Alibaba Group Holding Ltd and eXp World Holdings Inc.
- McQuarrie, L., “The Lancôme Happiverse Offers an Immersive Exploration of the Louvre,” Trendhunter, November 6, 2023; https://www.trendhunter.com/trends/lancome-happiverse
- Hayward, A., “Gucci Cosmos Land Opens in The Sandbox Metaverse Game,” Decrypt, November 8, 2023; https://decrypt.co/204761/gucci-cosmos-land-opens-sandbox-metaverse-game
- Garfinkle, A., “Roblox is shedding its meta shell to become a budding Wall Street darling,” Yahoo Finance, November 9, 2023; https://finance.yahoo.com/news/roblox-is-shedding-its-meta-shell-to-become-a-budding-wall-street-darling-165209448.html
- D’Anastasio, C., “Roblox Attempts Realism as Players Stick With Absurdity,” Bloomberg, November 24, 2023; https://www.bloomberg.com/news/newsletters/2023-11-24/roblox-attempts-realism-as-players-stick-with-blocky-absurdity
- “Third Quarter 2023 Financial Results,” Matterport, November 6, 2023; https://investors.matterport.com/static-files/2a5f8b1e-fc7d-4b43-b9e8-2e655f04f1a8