Readers may recollect that we had previously published “Intellectual Property in the Metaverse Era”. This is a continuation; however, here we talk about how “Luxury Brands are making money in Metaverse”. The Metaverse is a virtual reality world where users can experience things as they would in the real world; Mark Zuckerberg claims that one-day mankind will migrate into the metaverse, leaving reality behind.
Virtual characters are already often used by gamers. To enter and engage with others in these 3D “worlds,” where they represent themselves as avatars, real people use online games and applications. These online communities’ actions mirror those in the real world. Even Manchester City, the English Premier League champions, is prepared to invade the metaverse. a virtual environment that can be accessed by headsets and hand controllers that makes use of technologies like blockchain, virtual reality, and artificial intelligence (AI). Fans may have the opportunity to see actual games in the virtual stadium.
The fashion industry also appears to be hopping on this trend that has gained international recognition. For designers, clothing and retail companies, and customers alike, the metaverse is presenting limitless opportunities. The metaverse is an online virtual environment where fashion firms wager that consumers would spend money on virtual attire. Numerous companies, ranging from Nike to Balenciaga, already have a presence in the Metaverse. Seven trademark applications by Nike are connected to metaverse technology.
- In September 2021, Dolce & Gabbana said that a nine-piece collection of nonfungible tokens, or digital NFTs, together with some real clothing had been sold at auction for a total of 1,885.719 ether, or almost $5.7 million. It was said that Collezione Genesi, developed and marketed by UNXD, a curated marketplace for digital luxury and culture, was the most intricate fashion NFT has ever produced.D&G Dress From a Dream in gold source: Dolce & Gabbana
1.Balenciagahas become the first high fashion label to drop in Fortnite; players can buy digital outfits inspired by real-life Balenciaga pieces in a virtual version.
2.Louis Vuittonlaunched a video game, “Louis: The Game,” available both in the Apple Store and Google Play. Players could find “precious” NFTs.
3. The Gucci Garden, a pop-up on Roblox sold the brand’s designs. A Digital-Only Gucci Bag was sold for $4,115 on Roblox.
4.Burberry- In November 2020, Burberry collaborated with Tencent Games, creating designs for popular Chinese online battle game Honor of Kings.
According to Bernard Arnault, CEO of LVMH, the world’s largest luxury goods company, what makes this new era of fashion so appealing for designers is the removal of real-life and physical constraints.
Growth of luxury fashion brands in the metaverse
NFTs (non-fungible token) make up one of the largest markets virtually. Luxury fashion brands have joined hands with NFT developers or have themselves launched their NFT collections in the Metaverse.
Most virtual luxury goods are released in limited quantities, and users who purchase them receive an NFT as a virtual certification of ownership that runs on blockchain technology. With this proof of authenticity, an owner can showcase a handbag or dress on VR Chat, where millions of users interact daily through avatars — and flaunt their outfits.
Zuckerberg says, “Avatars will be as common as profile pictures today, but instead of a static image, they’re going to be living 3D representations of you, your expressions, your gestures that are going to make interactions much richer than anything that’s possible online today. You’re going to have a wardrobe of virtual clothes for different occasions designed by different creators and from different apps and experiences.”
Established brands could look at metaverse as an ever-growing opportunity to connect with their audience. How the luxury brands augment their presence and liaise in the digital space today may determine their future success in the years to come.
Over time, we have seen how brands have made their way into the world of digital, styling virtual clothing, entering into gaming, art, collaborating on NFTs with other creative industries. While this change may seem quite progressive in terms of the luxury world, over the last few decades, the luxury industry has undergone many radical changes and it has grown to become a global and social phenomenon.
Fashion and luxury brands Paco Rabanne, Dolce & Gabbana, Etro, Tommy Hilfiger, Dundas, Cavalli, Nicholas Kirkwood, Elie Saab and Imitation of Christ had joined the official lineup for the first-ever Metaverse Fashion Week (MVFW), which took place on 23-27 March. The four-day event focused on digital fashion collections staged daily on virtual runways and ongoing shopping experiences in Decentraland, a metaverse platform.
