With NFTs and the metaverse, the mechanisms of economic growth in fashion and luxury are rapidly evolving, and entering Web3 to create or strengthen web presence is becoming crucial. Utilizing these new technologies to their full potential may be the secret to redesigning one’s company and immersing the brand in a dynamic of innovation. The most popular fashion brands, such as LVMH, Gucci, and Burberry, are already players in the metaverse and seeing promising results.
ENRICH YOUR BRAND EXPERIENCE
Metaverse is the ideal place for a brand to enrich consumer experience and offers unlimited possibilities as it is designed specifically to deliver new, personalized experiences that are unlike any other.
Get in line with new digital uses
In France, one-third of the population is familiar with the concept of the metaverse, and 44% of them believe that metaverse spaces are everyday spaces or will be within the next year. Digital communities created within Web3 can be considered even more present as brands are directly able to talk with their clients and community.
Offer new kinds of experiences
Experiences in the metaverse are varied and can aid luxury brands in addressing different objectives and targets. NFT drops and distribution of digital versions of collections have been launched by brands such as Ralph Lauren and Balenciaga. Events taking place entirely in the metaverse have been organized such as the Metaverse Fashion Week organized in Decentraland. These experiences offer exclusivity in terms of releases, product offerings, etc., the pinnacle of desired experiences for luxury brands.
Create a new facet of your Omnichannel Customer Experience
There is a clear opportunity for brands to cross-sell their products between the physical and the digital worlds. Brands must integrate these different spaces to enhance their interaction with the customer. In terms of a 3D experience, developing NFT minting and drop events is a bridge to the current and future uses of the metaverse.
REACHING NEW COMMUNITIES
Historically, luxury brands have relied on word of mouth and in-person advertising to promote their brand, yet, these methods are not efficient when it comes to targeting the younger and newer generations of consumers. Brands face the dilemma of targeting these customers while trying to stay true to their heritage and brand reputation. Different types of metaverses can bridge that gap. For a brand to determine which metaverse is the right fit for them, they have to analyze the different target segments.
Generation Z and Alpha
Currently, Gen Z makes up approximately 60% of users in the metaverse. They tend to be digitally empowered and need a digital point of contact with their favorite brands.
Considered visionaries and attracted by brands that can reunite fashion, innovation, and technology together, these users have no financial limit on their online expenditure if they believe in its worth.
They are a segment of people who value a brand or a product due to their presence in the “tech universe” and have a huge advertising potential due to their consumption of these products.
Metaverse early adopters
Considered a “niche market”, they are key to increasing brand recognition in the metaverse, not only by buying products and services but for their ability to influence others.
Dive deeper into all these concepts by downloading our whitepaper here: Luxury and Fashion Metaverse Whitepaper
STRENGTHEN YOUR BRAND LOYALTY
The metaverse is a unique space for interaction with a community or with the avatars of potential clients (personal digital doubles). These new and highly experiential interaction spaces allow a brand to reinforce or create brand loyalty.
New Reward Areas
NFT sales not only create memorable consumer experiences but also go a long way toward creating loyal communities. This is done through rewards granted to the most loyal customers in the form of NFTs, depending on the level, and these rewards give access to private and exclusive events, thus creating a very strong feeling of belonging towards the brand.
Le Bristol Paris recently launched an exclusive NFT collection called Le Bristol Unlocked, powered by Metav.rs, featuring 11 unique NFTs corresponding to one of the hotel’s signature suites.
Contribute to brand desirability
The Metaverse allows the mass market to enter the brand’s universe by offering free and accessible experiences. It enables the brand to maintain a high level of desirability.
For example, Karlie Kloss is bringing the fashion industry to people from all backgrounds with her new immersive Roblox world, Fashion Klossette. By offering a unique way to experience the industry, Kloss is helping to make fashion more accessible and inclusive.
This culture of scarcity also makes it possible to link the physical and digital worlds, such as NFT holders benefiting from exclusive experiences in the physical world. This, in turn, makes the digital community a customer in the physical world because of its attachment to the brand and the feeling of exclusivity that the brand grants.
BUILD TRUST AROUND YOUR BRAND
Avoid counterfeiting and be prepared against intellectual property theft
In 2019, counterfeiting revenues were estimated at $464 billion according to the European Union Intellectual Property Office; the most impacted sector being the luxury sector. To avoid these adverse effects on their image, luxury brands can use NFTs to protect themselves from falsified products by tracing the manufacturing process on the blockchain.
The LVMH group, together with Prada, Richemont and more lately Mercedes-Benz developed the Aura blockchain in response to the multiple counterfeiting problems it was facing.
Allow more transparency
By tracking product life cycles in this space, brands can maintain full transparency for their consumers and forge deeper client relationships.
For example, the Aura blockchain protocol allows luxury brands to share the complete supply chain process with consumers through the NFT.
Is it possible to be sustainable in web3?
Web3 faces major challenges ahead in terms of sustainability as digital and cryptos produce more and more greenhouse gas emissions. However, compared to its physical counterparts, it uses 97% less greenhouse gas emission, no waste, no water consumption or pollution, and no microplastics in our seas, thus making the production of a digital wearable more sustainable.
BUILDING A METAVERSE LINE OF REVENUES AND NEW BUSINESS MODELS
New marketing channels
Marketing brands via the metaverse allows for the opening of new horizons with brand awareness and even different kinds of interactions with customers: feedback, product exclusives, community forums, etc. This drives sales and customer growth in boutiques.
Create and develop a new line of digital revenues in the Metaverse
The brands can now target consumers who are less aware of luxury goods or are unable to afford the physical item. By setting the value at more or less expensive than its physical counterpart, the metaverse opens the door to buying branded products for new consumers. That’s why the fashion industry has been quick to digitize, with many brands offering digital collections.
Focus on 100% virtual fashion brands
Platforms like Tribute Brand are increasingly becoming popular. It is a digital-only contactless platform. The principle is that users after purchasing their wearable, send a photo of them. A few days later, those users receive the same photo but this time, they find themselves wearing the wearable previously purchased.