Over the past year, the metaverse has arguably become one of the hottest topics of conversation worldwide. According to tech titan Mark Zuckerberg who recently rebranded Facebook to Meta, the Metaverse is sure to represent “the next chapter for the internet.”
The Metaverse has kick-started debates about what it is and what it can do all around the world.
It’s loosely conceptualised as a network of 3D virtual worlds focused on social connection and shared digital space.
Nonetheless, considering the deep dive into the thousands of articles written on the topic, it’s clear that an accepted understanding of its purpose or clear definition still eludes us.
And yet, just like the internet that came before it, excitement is bubbling. There’s talk about the potential ways it will revolutionise our lives and allow us to connect and interact like never before.
Perhaps this has been compounded by the global pandemic and the shared experience of disconnection it brought to our lives, or perhaps it’s because the world has already been adapting to the metaverse – we just didn’t know it.
Although this shift might be seen as the antithesis of the values we have come to associate with traditional luxury brands, fashion brands have been among the successful early adopters of the concept.
For example, at the height of the pandemic, several of the world’s most loved fashion brands, from Saint Laurent and Louis Vuitton to Puma and Alice & Olivia, pivoted from the well-dressed front-row to the digital world as part of #TikTokFashionMonth.
This immersive series of fashion shows live streamed by TikTok reached a projected audience of 800 million people, zooming in from the comfort of their own homes.
The metaverse’s prospective financial and advertising benefits have also enticed brands. While tech giants, online gaming developers, and social media platforms may be considered the frontrunners in the field, luxury brands have set up grounds for fair competition.
Here are some considerations for luxury brands to be mindful of when leaping into what, for many, is still the unknown:
1. A deeper understanding of customer demand
The metaverse could give luxury brands the power to easily carry out trend-checks, evaluate production quantities and understand whether they need to manufacture or revive specific products based on virtual demands.
This is crucial because it provides brands with the possibility to gather customer feedback and therefore plan for the future.
Brands can also utilise the metaverse to share progressive ideas with interested users and corporates or virtual prototypes. These ideas can be tested on virtual platforms before they get dismissed or fail in the real world.
2. Establishing long-term relationships between brands and consumers
With the growing influence of the digital world, it is not far-fetched that people will live out a chunk of their social lives on digital platforms. Herein lies the chance for brands to harness this curious audience with engaging content/products online, and capitalise on this to build loyalty for their brand.
For example, younger customers can purchase their ‘dream’ luxury items in virtual worlds without splurging too much, which is a terrific way for brands to build long-term loyalty.
3. Designers and artists can delve deeper into their creativity
The metaverse presents opportunities for businesses to experiment and expand their horizons, which were previously beyond their reach.
Luxury brands can now re-define their narratives and bring virtual experiences to life, in tandem with capitalising on their heritage in the real world.
For example, the first high-end luxury fashion brand to emerge in the online gaming sensation Fortnite was Balenciaga.
The brand aims to create a robust online presence with the younger generation by encouraging gamers to buy digital outfits inspired by their products.
Another great example is Louis Vuitton who created Louis the Game to let fans discover the brand’s heritage with fresh insight whilst reflecting its integrity and creativity.
4. Shop ’til you drop – but make it meta
E-commerce in the metaverse is sure to accelerate in the coming years. The metaverse will allow users to engage with digital showrooms and visually purchase products, taking us light-years beyond today’s shopping world.
As the adoption of technology continues to grow, it will bring more features that merge offline and online shopping.
The digital world is still far from replacing physical shopping; the experience of visiting a store and the need to touch and feel high-priced luxury goods before buying them isn’t going anywhere any time soon. Instead, brands will use it to complement their physical stores and cater to larger audiences.
According to Whitney Browne, Director of Experience Consulting at EPAM, some companies have it easier than others, depending on their target demographic and goods/services.
Nike, for example, has a user base that includes young folks who are actively participating in these virtual worlds — and because everyone owns a pair of Nikes, the brand can easily participate in this sector.
5. Recommendation for luxury brands that would like to enter the Metaverse
According to Morgan Stanley, the Metaverse will be worth around 10 percent of luxury corporations in ten years. Given the influence of the digital revolution on our contemporary beliefs, luxury brands must be at the forefront of this shift.
As a full-service digital agency we believe that the virtual world can be used to enhance the physical world by providing experiences across various touch-points and platforms.
However tempting it is to jump into all of the opportunities the metaverse seems to offer, luxury brands should not neglect the physical world “just for the hype”.
Matt Moorut, a senior principal analyst at Gartner, told Vogue Business that it’s important to highlight that most consumers are still not regularly engaging with the metaverse, which is especially true among the older age group that make up for an important segment of the luxury consumer market.
When used correctly web 3.0 can definitely benefit brand advocacy and legacy – but in order to reap the full benefits of this new world, digital and physical must find a way to co-exist in perfect harmony.
Murat Yoldas Ertugrul, vice president MEA & Turkey, Emakina.
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