After taking a major blow by Covid-19, what's next in digital for Fashion? Why we see more and more brands investing in Metaverse, NFTs, and social games?
"The Metaverse will likely take many years to develop; however, NFTs and social gaming present two nearer-term opportunities for luxury brands."
says Morgan Stanley.
If you are wondering why most luxury brands are engaging with the virtual world already, it's because there is some business to be made, but mostly because they are about storytelling and also likely because the end consumer is quite complementary to their existing base - more male than today's average and clearly young.
Marketing experts also believe that generation Z who grew up with video games and social media will one day become big customers and are starting to adopt the Metaverse as their promotional tool.
According to Morgan Stanley; NFTs (non-fungible tokens) and social gaming could expand luxury group's total addressable market by more than 10% in eight years and boost industry earnings by around 25%.
We already see some of the luxury brands are expanding their strategy in digital world with getting into Metaverse.
5 Fashion Brands that are in Metaverse:
1 - Dolce & Gabbana
Luxury fashion brand Dolce & Gabbana recently sold nine items of NFTs (non-fungible tokens) for almost $6 million.
A curated marketplace for digital luxury and culture, Collezione Genesi that is conceived with and auctioned by UNXD, was said to be the most complex fashion NFT created and offered so far.
Since the announcement, the cryptocurrency’s value has climbed making the collection now worth $6.1 million as the payment to Dolce & Gabbana will be made at market rates rather than values at the auction’s close.
“These prices are not surprising,” said Nick Jushchyshyn, program director for Virtual Reality and Immersive Media at Drexel University. “You have world-renowned designers creating something absolutely unique, with attention to detail — it is beyond what you expect to see in a typical digital rendering — and it’s a one of one. It makes perfect sense that there would be an NFT collector in the world who would value it.”
The Gold Glass Dress NFT designed by Dolce & Gabbana and constructed by UNXD, a digital marketplace. Credit UNXD and Dolce & Gabbana
2 - Louis Vuitton
Louis Vuitton on the other hand, took a different approach and celebrated its 200 years with an adventure-based game where there are 30 embedded NFTs you can find throughout the game, designed by artist Beeple.
Each NFT is collectible that can only be found through playing the game and cannot be sold.
Dubbed Louis the Game, the phone app follows our protagonist, Vivienne, through six different worlds, where she needs to collect 200 candles to commemorate the birthday of Louis Vuitton.
It is obvious that Louis Vuitton is venturing way beyond fashion, and is paying homage to its founder by depicting his journey to building the now global luxury fashion house. The game is also a way for LV to tap into its younger audience, the Gen-Z consumers that are hard to impress, by creating a challenge that everyone can be a part of – without having to purchase anything. It is a way to be a part of the LV universe, as well as the perfect opportunity for the brand to introduce itself to new consumers.
The Louis The Game by Louis Vuitton
Credit Louis Vuitton
3 - Burberry
Burberry has recently announced it is partnering with Mythical Games to launch a non-fungible token (NFT) collection in their flagship title, Blankos Block Party, a partnership of firsts paving the way for the future of digital ownership in gaming.
Blankos Block Party is a ground-breaking, multiplayer party game featuring digital vinyl toys known as Blankos that live on a blockchain, inherently providing players with proof of verified ownership and authenticity. Burberry is the first luxury brand to feature in Blankos Block Party.
Adorned with Burberry’s new TB Summer Monogram and inspired by the brand’s Animal Kingdom house code, the limited- edition, limited-quantity Burberry Blanko – a shark named Sharky B – is an NFT that can be purchased, upgraded, and sold within the Blankos Block Party marketplace. As part of this collection, Burberry will launch its own branded in-game NFT accessories, including a jetpack, armbands and pool shoes, which players can apply to any Blanko they own. Sharky B can also be trained to master an array of powers, including speed and agility, ensuring both the toy’s uniqueness and rarity.
Sharky B
Credit Burberry Blanko
4 - Adidas
Fashion brand Adidas announced recently that it has purchased a Bored Ape Yacht Club NFT and is collaborating with Bored Ape creators Yuga Labs and others in the space to enter the metaverse—an emerging vision of a future internet in which users interact in shared 3D worlds with their owned NFT collectibles.
Adidas purchased Bored Ape Yacht Club NFT #8774 and will turn it into a metaverse character named Indigo Herz. According to public Ethereum blockchain data via marketplace OpenSea, the NFT was purchased in September for 46 ETH, or just over $156,000 at the time.
5 - Balenciaga
Balenciaga, always one of the leading luxury fashion brands when it comes to innovation and futurism; also partnered up with a well-known online video game Fortnite.
In the game, players can not only choose new Balenciaga outfits and accessories, but they can also enter a Balenciaga store and do a custom Balenciaga dance.
Users who make a purchase and play in their new Balenciaga looks can also submit photos of their characters to be included on virtual billboards within the Fortnite town square. In the real Times Square, real humans can find a Doggo billboard and travel up Madison Avenue to the Balenciaga store, where they’ll be able to shop a fully fleshed-out collection of Fortnite and Balenciaga products.
The expansive partnership has obvious benefits for both the luxury maison and the video game: Balenciaga will meet a new audience of engaged players, and Fortnite will enter into the high-fashion lexicon.
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