Top 10 luxury fashion brands experimenting in the metaverse

Clothes are not about comfort in the world of high fashion - Fashion is a channel for self-expression. Although, this is now a known reality, the perspectives that technologies like the metaverse are offering future fashion is considerable.

The metaverse is home to many companies releasing exclusive collections and making millions. Luxury brands are increasingly depending on digital activations to not just survive but thrive. The continued success of luxury brands serves as further proof of the meteverse's resiliency. Below are the top fashion companies to use Metaverse most effectively going into 2023.

1. Gucci

Gucci is a world-famous fashion house that specializes in high-end accessories and clothing. They recently launched “The Gucci Vault Discord”, which is intended to drive and foster open discussions about the future of the metaverse. It is expected that this will be the brand's official server, hosting its creative space and allowing the past, present, and future to coexist peacefully. As part of the new vault, Gucci creatives will also discover new digital spaces and will be able to filter some of the House's vintage products and top designers. Gucci has also joined Superplastic, which specializes in rare vinyl toys and collectibles. These NFTs heavily incorporate the brand's distinct patterns, symbols, and icons. The Gucci Garden space was open for two weeks, allowing collectors and gamers to purchase collectibles and several rare Gucci accessories.

2. Louis Vuitton

Users of "Louis the Game" gain knowledge about the historic company as they travel with the game's protagonist, Vivienne, through seven different virtual landscapes that were modeled by real-world fashion cities like Munich, London, and Paris. Along with being able to choose from a variety of LV prints to personalize their avatars, players were also able to learn about the history of the renowned luxury brand through postcards and other artifacts that randomly appeared during gaming.

3. Balenciaga

Balenciaga, the fashion house, has collaborated with “Epic Games”, the creators of Fortnite. After all, the company dresses celebrities like Kim Kardashian, who in reality resemble futuristic video game stars. Balenciaga has added four fashionable skins to Fortnite. There are also various fashion accessories available, such as a Balenciaga Bling backpack. The fashion company has established a Metaverse department since this collaboration will not be a one-time event.

4. Nike

Everyone should know, the famous brand Nike, which is the signature tick logo and motto, 'Just Do It.' It is one of the largest corporations with expertise in the design, manufacture, development, marketing, and global sale of various clothing and fashion items. Nike has something for sneakerheads who are interested in the metaverse. It recently released several exquisite pieces that are for sale but cannot be worn in person.

5. Burberry

Burberry is easily identifiable due to its trademark check pattern. Most people who wear Burberry items are seen as classy and fabulous, which may explain its popularity. As many big tech founders refer to it, the metaverse is the future of the internet, and this luxury brand joins the likes of Louis Vuitton, Nike, and Gucci in exploring it. Burberry collaborated with Mythical Games on its first non-fungible token, Blankos Block Party.

6. Adidas

Adidas has combined the digital and physical worlds, with buyers able to purchase not only the NFTs but also the physical clothing that accompanied them. The virtual wearables can be used in The Sandbox, a metaverse-like platform, alongside physical products such as tracksuits, hoodies, and Gmoney's signature orange beanie. The crypto exchange Coinbase secures all digital assets, and the venture is part of the sportswear lifestyle label Adidas Originals.

7. Forever21

On the video game platform Roblox, Forever 21 offers its users the opportunity to buy and sell goods of its fashion label in the virtual world of "Forever 21 Shop City". Further, players can hire employees and customize their fashion shops individually.

8. Givenchy

You've probably heard musicians praising Givenchy, especially hip-hop fans. This is a high-end fashion house known for its exquisite clothing and perfumes. It's worth noting that it is the parent company of top fashion brands like Louis Vuitton and Dior. Givenchy has not been left out of the race for metaverse representation by fashion houses and brands. It recently collaborated with Chito, a renowned graphic artist, to launch a series of 15 non-fungible tokens, which were auctioned off on Polygon. During this seven-day simulated auction, the company earned its first profit from this virtual world. Givenchy, like Balenciaga and Louis Vuitton, has demonstrated that fashion houses can benefit from the metaverse.

9. Dolce & Gabbana

In less than four decades, the company has provided exquisite fashion pieces to celebrities and fashion enthusiasts all over the world. Dolce and Gabbana have not been left behind by other fashion houses in their quest to benefit from the metaverse. Dolce & Gabbana worked together with Polygon and commissioned a collection, which combines some of the best Ethereum and sovereign blockchains.

10. Hermes

After filing a trademark for virtual clothing and fungible tokens, Hermes, the iconic fashion brand, hinted at major web3 plans. In addition to launching a virtual marketplace and web3 financial services, Hermes plans to launch a virtual currency linked to digital collectibles and NFTs, although the exact scope is still unclear. Fashion shows and trade shows in both AR and VR environments are also mentioned in the trademark application.

5 ways that fashion companies are using the metaverse

Brands can engage new audiences by utilizing the metaverse. Any emerging technology must be embraced if brands want to remain relevant. It's already commonplace to shop for clothing digitally since the recent pandemic. So, how do fashion companies benefit from the metaverse? Here are 5 easy methods:

1. A digital clothing item has a carbon footprint that is 97% lower than a garment, which encourages a more environmentally friendly way of doing business.

2. Overstocks are reduced by using 3D renders for displays and shipping only after orders have been confirmed.

3. Digital spending is on the rise, with 2.14 billion people already having made purchases online. With this number expected to rise, there is plenty of opportunity for brands to enter the metaverse.

4. Technology such as 5G is essential for the metaverse to thrive. A greater 5G coverage will allow more companies to create seamless ecosystems and utilize the metaverse.

5. Consumers can now explore brands online and in the real world to make more informed purchase decisions because brands are enabling them to explore their full range.

What do brands need to know about the metaverse?

Brands must completely rethink their approach to conducting business in light of the metaverse. It's important to consider how you can survive in the metaverse rather than just "How do you market in the metaverse?". The metaverse no longer supports conventional methods of product development, marketing, and sales. Consider the video game you used to play as a child and how your avatar interacted with the setting you created. Does that provide any context? The metaverse is an online environment with a virtual currency and a large community of participants. Luxury fashion companies must figure out how to meld into these online environments and provide goods that are relevant there. When compared to the conventional business environment, it is simple to see how everything will need to change.

Conclusion

The physical world is evolving toward virtuality. Luxury brand companies have a ton of opportunities to grow their businesses to new heights in the metaverse virtual world. The fact that so many influential players are already taking advantage of this technology confirms the necessity of creating metaverse strategies across industries.

There are numerous marketing and advertising opportunities in the metaverse. Brands from various industries are now able to cater to specific audiences and provide individualized customer interactions thanks to the blurring of the lines between the physical and digital worlds.

Launching video games and online stores by brands makes marketing to the younger demographic more natural. However, to pursue metaverse marketing, companies might need to make time and financial investments in cutting-edge technology. Although the metaverse is still relatively new and unstable, businesses see this as an opportunity to usher in a new era of marketing. A marketing strategy based on the digital world's intersections of gaming, lifestyle, culture, and the arts has a promising future.

Want to learn more about the metaverse and how fashion brands are leveraging this new technology to further their marketing efforts and enrich customer experiences?

Read our detailed blog on this: “Hybrid stores: Why the luxury market in the UAE is fast switching to the Metaverse”.