Fashion Metaverse: How Luxury Brands Can Embrace the Opportunity

22/04/2022 By Ghia Marnewick Reading Time: 5 Minutes

Metaverse, metaverse, and did we mention, metaverse? Everyone is talking about it, brands are investing in it and the rest of the world is left waiting to see how it all comes together.

Adding to the hype of it all is the fact that the metaverse market is estimated to be worth $800 billion! Bet we’ve got your attention now…

The interest in shared online worlds, 3D interactions, data synchronisation and the joining of both digital and physical worlds have all contributed to this booming industry. With the projected value of the metaverse, it’s easy to see why businesses are taking note of it. Not only is it a great business opportunity, but it also opens the doors to a reimagined world of advertising.

One of the industries already taking note of and utilising the metaverse is the fashion industry. Luxury brands have started looking into ways to use this emerging technology to their advantage, and in most cases, brands are succeeding.

The role of Gen Z in the metaverse

As with any new technological development, there needs to be a force driving the change. When it comes to the metaverse, Gen Z happens to be the trendsetters and game-changers.

This generation is a great example of how users and operators will need to come together within the metaverse to drive further technological development.

The influence Gen Z has over older generations is also beneficial in promoting engagement and investment into the metaverse. They’re essentially a tech-enabler and are pivotal to the success of the metaverse and the transaction happening within it.

Think of how Fortnite’s Rift Tour included a 15-minute concert featuring Ariana Grande. This virtual experience attracted over one million viewers – four times more than the world’s largest stadium ever could handle. This global scale of the metaverse was put to the test with this, and its no limit capacity continues to be one of the biggest selling points.

5 Ways fashion brands are leveraging the metaverse

Luxury fashion brands leveraging metaverse open themselves up to a new world of user integration and interaction. As with any emerging technology, brands need to find ways of getting on board and riding the wave if they are to remain relevant.

Digital clothing shopping options have already become a standard given the recent pandemic. In fact, in 2021, NFT sales amounted to almost $25 billion in 2021 alone. Picking up on this trend was the luxury fashion brand Dolce & Gabbana. Their nine-piece NFT collection set records after selling for $5.7 million.

So, how are fashion brands using the metaverse to their advantage? Here are 5 simple ways:

1. It promotes a more sustainable way of doing business, with the carbon footprint of a digital clothing item estimated to be 97% less than that of an actual piece of clothing.

2. It reduces the risk of overstock by using 3D renders to showcase the designs, and only delivering products once orders have been confirmed.

3. More people are taking part in digital spending, with over 2.14 billion having made online purchases in 2021. With this number set to increase, there is certainly room for brands to enter the metaverse to drive sales.

4. 5G technology provides the infrastructure needed for the metaverse to thrive. By expanding 5G coverage, more brands and businesses will be able to use the metaverse to their advantage to build seamless ecosystems.

5. With people having the time and freedom to explore brands in the virtual space, brands are enabling them to discover the complete range so consumers can make more informed purchase decisions.

What does the metaverse mean for brands?

The metaverse means that brands need to rethink their entire way of doing business. It’s more than just asking “How do you market in the metaverse?”, it’s about asking how you can survive within the space.

Traditional ways of developing, marketing and selling products are no longer applicable in the metaverse. Think of Sims, that game you played as a kid, and how your avatar interacted within the world you built. The metaverse is that world, and you are the Sim. Does that put it into perspective?

The metaverse is an online world with a virtual currency and a whole bunch of people interacting within that space. Luxury fashion brands need to find ways of seamlessly blending into these online worlds and offer products that make sense in that space. Comparing that with the traditional business world, it's easy to see how everything will need to change.

Which brands are in the metaverse?

Examples are always a great way to illustrate the power of an emerging trend and technology, so without beating around the bush, let’s take a look at luxury brands successfully leveraging metaverse.

1. Gucci and Roblox

These two luxury brands launched a two-week art installation that allowed visitors to try on and buy digital products for their avatars. They could then walk through the virtual Gucci Garden space and discover different brand campaigns.

2. Fortnite

Players are now able to buy digital Balenciaga merchandise that has been inspired by existing spaces. This hub also provides a space for players to hang out together – virtually of course.

3. Louis Vuitton

To celebrate two centuries of Louis Vuitton, the brand launched a virtual game where players were required to find 200 birthday candles. Along the way, 30 NFTs were up for grabs.

Unleash endless opportunities with the metaverse

The virtual world of the metaverse offers so many opportunities for luxury clothing brands to take their business to new heights. With so many major players already using this technology to their benefit, it reaffirms the need to develop fashion metaverse strategies.

The world is changing and becoming virtual. Are you ready to take on the metaverse and unleash your brand’s true potential?

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22/04/2022 Branding, Digital Marketing, Technology, Strategy Luxury-brands, Luxury Fashion, Luxury, Luxury Brand Marketing Strategy 0. Comments BY Ghia Marnewick