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.
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.
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.
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.