Big Data – The Global Games Industry Market

Post-Covid consumers have adapted to physically disconnected & emotionally connected interactions with brands, the virtual world offers limitless possibilities for Fashion Brands.

According to e-marketing [1], gamification is the use of game-based mechanisms in areas that are not games. It starts from something that is not fun and adds game techniques to bring fun to it. In the Fashion industry, this trend emerged in 2017, with the “custom skins” that allowed players to purchase online clothing to customize their avatar.

This simple idea kick-started a new trend and brought new marketing opportunities for brands that are always looking for new and innovative concepts based on everyday usage patterns. Gamification was identified as an excellent opportunity to connect with consumers and the very desirable younger demographics. It also offers a tremendous opportunity for luxury brands to define what a luxury experience should look like in the virtual world [2].

Since then, gamification has become a playground for luxury brands, allowing them to meet new business challenges in experience, loyalty, and engagement. Indeed, it is a way to meet new consumers, create a privileged link with them, efficiently boost brand awareness and engagement, and collect data.

Thus, fashion actors have expanded their marketing operations and communication strategies by adapting gaming’s visual code. The gaming industry market has risen exponentially in the past few decades. The chart below illustrates how the industry has changed and grown since the 1970’s and why the Fashion Industry wants a piece of the digital pie.

50 Years of Gaming History, by Revenue Stream (1970-2020) [3]

According to a recent report by Newzoo senior market analyst Tom Wijman, the global gaming market generated $159.3 billion in revenue in 2020. That was 9.3 percent year-over-year growth. What’s more, Newzoo projects the industry to surpass $200 billion in revenue in 2023 [4].

Players are usually millennials and generation Z with a unique set of values and expectations which will drive the fashion and luxury industry in the next few years. 50% of gamers are women, and the average age of male and female gamers is 39. According to The True Luxury Global Consumer Insight 2019 report, by 2025, more than 50% of luxury consumers will be millennials and represent a target with significant purchasing power.

This provides luxury brands with an invaluable opportunity to target and get the attention of millennials and Generation Z who are already defining the new targets for tomorrow’s luxury industry. Particular attention is given to the true-luxury consumers, who constantly search for extravagance, fun, and new forms of creativity in brands and products.

They generate about 30% of the global luxury market, which is expected to reach 395 billion Euros by 2025. According to the Boston Consulting Group, faithful luxury consumers are mainly from China, the driving force, and they will be responsible for market growth of 75% by 2025.

Discuss

• What is your understanding of gamification?
• Have you experienced or participated in a form of gamification? If yes, where and what did you think of it.

Please participate in the discussion and engage with your peers in the comments down below.

References:
1. Gamification definition https://www.e-marketing.fr/Definitions-Glossaire/Gamification-241886.htm
2. To read: Why Gamification Is A Necessity For Luxury Brands To “Level-Up”
3. https://www.visualcapitalist.com/50-years-gaming-history-revenue-stream/
4. https://www.reuters.com/article/esports-business-gaming-revenues-idUSFLM8jkJMl