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Luxury market on the metaverse: strategies and opportunities

Updated: Dec 7, 2023


Simone from Vision Factory

Author: Simone Bellezza

Date of Publication: 18/04/2023





The luxury market has undergone a fundamental transformation in the previous ten

years to become more technologically avant-garde. The haste to create their

brand.com e-commerce platforms was where it all began. The next factor was their

online presence and reactivity.


Also, over the past five years, it has been their capacity to establish an environment that

is really omnichannel. This way, the brand may connect with additional people and

touch points along the client journey. What’s more, during the lockdown, brands were

challenged to become more digital. Therefore, they would provide the same luxury

experience through virtual appointments or AR stores. Yet this wasn’t far from the

metaverse.


Luxury experience - metaverse

Opportunities and strategies to use on the Metaverse for a luxury experience


Game developers, after having paved a new way of living in digital realities, have also

integrated the game economy and real life. Through game currencies, purchased in cash,

consumers and players can buy skins for their avatars.


In particular, the first luxury brand to enter this market was Louis Vuitton in 2019,

designing skins for ‘League of Legends’. Other platforms where users can dress up their

own avatars in digital fashion are Zepeto and Snapchat for example. So, these activities

serve as a means of communication that spreads awareness of the brand among

consumers. Apart from that, ideally, prompts them to make in-person purchases.


Moreover, it gives companies the chance to better understand the market's desire for

digital assets. As a result of them, NFTs—individual cryptographic tokens created on the

blockchain—can then be implemented.


Opportunities and strategies to use on the Metaverse for a luxury experience

Luxury experience in mixed reality


The metaverse also opens the potential for improving the shopping experience via the use of mixed, augmented, and virtual reality. Specifically, brands have tried different

features. For example, they used web-based augmented reality with the creation of an

Instagram filter or investing in VR headsets. This last one can be used alternatively to

attend a fashion show or to experience new digital projects showcased.


Opportunities to make fashion luxury more transparent


Smart contracts have control of all transactions on the ''blockchain Metaverse''. In

fact, this implies that all transactions are subject to the terms of the contract itself. So,

these are fixed in a computer contract and cannot be changed.


Fashion industry - luxury experience in mixed reality

Blockchain and supply

chain

Actually, this feature ensures confidentiality and fairness among the participants. This way, it enables the innovative execution of new business prospects. What’s more, blockchain can follow items through the whole supply chain in the fashion industry. From the producer to the customer and beyond it is used in conjunction with tracking tags. Since blockchain cannot be altered, it is an excellent tool for supply chain and inventory management. What’s more, it boosts traceability and transparency.



All in all, luxury brands are still investing in new technologies that can lead to a better

approach to the metaverse. This way, they can enhance the luxury experience

further.


 

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