Direct-to-Avatar business model gaining traction: Michael McQueen

Direct-to-Avatar (D2A) is a business model expected to gain traction in the next 18 months, according to Michael McQueen, author of The New Now, which explores ten megatrends reshaping our world.

Megan Motto, CEO, Governance Institute of Australia and Michael McQueen, author of The New Now

McQueen spoke at the Governance Institute of Australia’s 2022 National Conference focusing on ‘modern philosophies’ this afternoon and told audiences that the D2A model will change the way that customers engage with products.

“Direct-to-Avatar is an entirely new model of creating stuff for people's avatar to wear and use. In other words, like products that don't even exist,” said McQueen.

He highlighted brands including Ralph Lauren, Nike and Gucci who are already engaging with the model.

“Brands like this develop the entire product ranges for avatars to use and wear,” he said.

Gucci for example has a digital version of a handbag available for purchase in the metaverse for $4,115, while the physical version costs $3,400.

According to McQueen the Avatar skins market worldwide last year was worth $40 billion.

Speaking to an audience of c-suite executives and non-executive directors, he said, “If that's something that seems weird to you, and I say this as someone who's 40, it just means you’re showing your age. Because as an old person, I'm like, ‘Why would you bother? I don't get it’. Okay, but young people, this is something they do and something that they value.”

McQueen pointed to Coefficient’s 2021 Consumer Trends Survey, where 45 percent of Gen Z and 43 percent of Millennials stated that they felt most like themselves online as opposed to offline. This is in direct contrast with Boomers where only 7 percent said the same.

It is this generational difference that is driving the growth of the D2A market, he believes.

“That's significant, because that's what's driving this consumption of products and services to personalise and express themselves in a virtual environment.”