Fashion has always been a way to express our true essence and identity. It functions as a visual language that allows us to tell our story, showcasing who we are and the goals we aspire to achieve. It’s no wonder, therefore, that this industry has gained prominence in the Metaverse universe, where digital identity is realized through avatars and virtual environments.
As the boundaries between the real and digital worlds merge, luxury brands find a new space to stand out in the Metaverse. Just a few years ago, the idea of traditional luxury brands entering the digital universe of the Metaverse might have seemed intangible, worthy of science fiction. Today, however, this reality is already a palpable revolution. Through digital products, NFTs, and virtual stores, major brands are driving fashion in the Metaverse. Thanks to the unique characteristics of NFTs, such as ownership verifiability, data immutability, and smart contract functionality, fashion brands are leveraging these technologies, and companies themselves are also adopting NFT development solutions to optimize their supply chain, logistics, and other business processes.
About the Metaverse
The Metaverse is a term that refers to a collective virtual space resulting from the convergence of the physical universe with virtual universes. This space is accessible via the Internet and consists of various 3D environments and experiences, inhabited and created by both machines and human users. The concept combines elements of social networks, virtual reality, augmented reality, and online video games, allowing users to interact in an immersive digital environment. In simpler terms, the Metaverse can be seen as a three-dimensional and participatory evolution of the Internet as we know it. With the advancement of virtual reality technology and the increasing digital interconnectedness, the Metaverse has gained popularity as the possible next step in the evolution of the Web and online interactions. In an era where the Metaverse gains prominence, one of the most widespread concepts is that of NFTs (Non-Fungible Tokens), unique and non-reproducible digital assets that represent objects or properties in the virtual universe. Like in other contexts, NFTs are based on blockchain technology to ensure authenticity and ownership. Within the Metaverse, an NFT can represent various items, such as virtual clothing, avatars, lands, buildings, and even works of art or other virtual goods present in these digital environments. The holder of an NFT in the Metaverse has property rights over that specific digital object, being able to use it, sell it, or perform other actions following the rules of the respective Metaverse. It is crucial to note that, due to their uniqueness, each NFT has a distinct value and can reach high prices in the market. And this is a business opportunity that luxury brands are not willing to ignore.
Evolution of luxury brands vs. Metaverse
At the forefront of the Metaverse, leaders of luxury brands are beginning to realize the potential of augmented reality (AR) and virtual reality (VR), acting quickly to seize the new opportunity at the marketing level. According to a recent study, 53% of fashion brands are investing $300 billion in the online gaming sector, exploring Instagram filters, digital avatars, and virtual stores. On the other hand, in the digital world of the Metaverse, luxury brands like Louis Vuitton and Balenciaga, for example, are beginning to recognize revenue opportunities, and analysts predict that the virtual luxury goods market could reach $50 billion by 2030.
In this way, fashion brands are launching NFTs with special utilities. Some NFTs are redeemable and provide physical products as rewards or discounts. In this context, fashion brands are also creating digital twins of their products. Moreover, they are opening virtual stores in the Metaverse for users to explore their services in an immersive virtual world.
The Metaverse is still under construction but evolving rapidly, composed of different parts. One of them is an immersive digital experience that does not require blockchain, using technologies such as augmented and virtual reality. The other part is a transactional location, where blockchain plays a crucial role. Elements of blockchain functionality ensure security through encryption, which makes use of an unbreakable code, validated and connected, creating a kind of fortress. In monetary terms, when we think about the direction the Metaverse might take, it is possible to envision an evolution of e-commerce, similar to the role that social platforms are currently playing by allowing transactions. Let’s see who is already making waves in this unique universe.
Gucci
Gucci not only takes the lead in the fashion industry but also in the Metaverse. The Italian luxury brand stood out in the digital scene with several innovative initiatives, reaching new heights. Last year, it innovated in the NFT space by releasing a film inspired by its Aria collection, achieving success when it was sold at an auction conducted by Christie’s, in collaboration with digital artist Lady PheOnix. But Gucci didn’t stop there! It partnered with the popular gaming platform Roblox to create the digital experience Gucci Garden, inspired by the brand’s real-life fashion show in Florence. In this way, users could explore thematic rooms and even acquire Gucci NFTs for use in the game. It’s worth noting that the virtual version of the iconic Dionysus wallet was sold for a record price of $4115, surpassing the value of its real-world counterpart. Since then, Gucci has continued to push the boundaries of virtual worlds, games, blockchain, and NFTs. The luxury brand collaborated with toy manufacturer Superplastic and the NFT narrative project 10KTF, announcing plans to further expand its Metaverse and gaming strategies. On the other hand, the initiative The Gucci Vault is another significant example. It functions as a digital museum where users can dive into the brand’s rich history and explore decades of design and fashion. This experience allows users to enjoy the brand’s heritage and establish a connection between the physical and digital worlds, aligning Gucci with the latest technological trends.
Louis Vuitton
Another renowned brand making its mark in the Metaverse. The French maison launched a mobile game in collaboration with artist Beeple, called Louis The Game, as part of the celebrations for the 200th anniversary of its founder. This narrative game leads users through seven virtual worlds, representing the seven fashion capitals. One of the most exciting aspects of the game is the opportunity for players to earn exclusive NFTs. The game features a total of 30 NFTs, including ten designed by Beeple. However, its most attractive feature is the ability for players to customize their avatars with a variety of available LV patterns — the game currently has a base of two million players. Unlike other brands that release NFTs for sale on the open market, Louis Vuitton stands out in this regard. The game’s NFTs or tokens are not intended to be publicly sold. On this point, Louis Vuitton CEO Michael Burke clarifies: “This is not a commercial experience, but an educational and pedagogical experience intended to be fun, emotional, and dynamic.” In summary, we can consider that gaming in the Metaverse represents a brilliant marketing strategy for the brand to engage interactively with its customers.
Prada
Prada and Adidas Originals joined forces to conceive an innovative project that conquered the virtual world, creating a futuristic environment where fashion meets technology. Through the limited edition NFT collection, named Adidas for Prada Re-Source, the two brands challenged the conventions of traditional fashion, bringing together a diverse group of three thousand participants from the fashion, design, and cryptography industries. The talented individuals were tasked with creating individual NFT blocks, later compiled into an NFT world by renowned digital artist Zach Lieberman. The result? An epic and unprecedented collaboration that features user-generated art owned by the creators themselves. This innovative collection pushes boundaries and was auctioned on the SuperRare platform, with profits going to Slow Factory, an NGO dedicated to empowering local communities and community creators. It is also relevant to highlight Prada’s partnership with Polygon Studios, enabling the creation of NFTs on the Polygon network and taking this project to a new level. The fusion of fashion, art, and technology present in the Adidas for Prada Re-Source collection is a unique experience!
Hermès
In a recent trademark application, the fashion house revealed major initiatives in the Web3 area, including the launch of a virtual marketplace and associated financial services. But the ambitions don’t stop there: the luxurious French house also intends to introduce its own virtual currency, linked to digital collectibles and NFTs. Furthermore, the trademark application suggests that Hermès is planning to hold fashion shows and commercial events in augmented reality and virtual reality environments. In this way, anyone can watch a fashion show from the comfort of their own home. It seems that Hermès is taking significant steps in the Metaverse, preparing to explore the numerous possibilities that the virtual world offers.
Burberry
At the forefront of trends, the exquisite Burberry embraces the Metaverse world by partnering with Mythical Games’ Blankos Block Party to create an exclusive collection of NFTs. With Sharky B, the stylish shark character with the Burberry monogram, the maison gives users the opportunity to acquire, upgrade, and sell the token in the Blankos Block Party market. This collection is not limited to figures only, including also modern game accessories, such as armbands, pool shoes, and jetpacks, as well as the ability to unlock a variety of superpowers. After the success of the first collaboration, Burberry introduced Minny B, a new unicorn NFT character, along with a line of NFT accessories. The innovations don’t stop there: this fashion giant also launched a collection of virtual wallets for the Metaverse in the Roblox game environment.
Balenciaga
From Paris Fashion Week to the virtual universe, the luxury brand is taking its style to new heights. Balenciaga made history in 2021 by becoming the first fashion brand to launch an NFT capsule collection in the popular video game Fortnite. Now, players have the possibility to explore the Fortnite x Balenciaga store, where they can acquire virtual Balenciaga pieces, such as the Hourglass Bag glider and the Speed Sneaker pickaxe. In addition, limited edition physical products are available, including sweaters, shirts, jackets, and caps with the logos of Fortnite and Balenciaga. This release not only resulted in a significant increase in online searches for Balenciaga but, with the Metaverse gaining importance, the brand is even establishing a dedicated business unit for this new domain.
