Today, 2/3 of Gen-Alpha are already engaged in games like Roblox, where they spend an average of two hours daily.
Brands have recognized an opportunity to directly market and establish brand awareness (building brand loyalty), as seen in platforms like Roblox, where children spend time independently, away from parental supervision.
Gen-Alpha children are allocating their pocket money for virtual clothing for their online personas.
Gen-Alpha and Gen-Z represent a lucrative and rapidly expanding consumer demographic. By 2030, their spending is expected to grow three times faster than that of other generations.
A remarkable 52% of Gen-Z gamers have reported feeling more authentic in the Metaverse than in the real world.
Morgan Stanley estimates that by 2030, the Metaverse will contribute to a $50 billion increase in revenue for the fashion industry. This is not surprising, considering that a single set of virtual fashion items (skins) in the online game Fortnite generated $50 million in revenue. Despite being a free game, the average Fortnite player spends approximately $100 per year. As Gen-Alpha and Gen-Z consistently invest time and conduct commerce in video games and the Metaverse, these behaviors are likely to persist.
Owners of retail assets should pay greater attention to how they can attract and appeal to Gen-Alpha and Gen-Z consumers to ensure their engagement remains relevant.
Failure to do so may lead to the loss of consumers to other platforms, such as social media and online games.