MILAN (Reuters). – According to analysts, digital demand for luxury brands and fashion is likely to rise and increase from its current low level. The industry could generate additional sales of up to $50 billion annually by 2030. Morgan Stanley (NYSE:).

The U.S. investment bank strategists wrote Tuesday that “Revenue streams via digital mediums are negligible…We think this is about change.”

The Metaverse is likely to take many years, however, the NFTs, social gaming (e.g. concerts attended online by people’s avatars), present near-term opportunities and luxury brands have two options.

Morgan Stanley claims that NFTs (nonfungible tokens), and social gambling could increase luxury groups’ total market addressability by over 10% in just eight years, and potentially boost the industry earnings before interest tax by about 25%.

The Roblox gamer community is updating their avatars on a daily basis, so luxury brands have been exploring collaborations with Metaverse and gaming platforms.

It also said Italian brand Dolce & Gabbana’s recent sale of nine NFTs for $5.7 million, albeit small, highlights the virtual and hybrid luxury goods’ huge potential over the coming years.

We expect that the entire sector will benefit from the introduction of the Metaverse. However, we see soft luxury brands such as ready-to-wear and leather goods (soaps, shoes, etc.) being particularly well positioned. “We see the Metaverse as particularly well-positioned, as opposed to hard luxury such as watches and jewelry,” it stated.