Luxury Fashion in Metaverse: What are the strategies employed by fashion brands in virtual worlds?

Abstract

The metaverse, a platform bridging the real and virtual worlds, has recently emerged as an attractive business avenue, particularly for the fashion industry. Fashion brands are increasingly exploring the metaverse as a novel marketing platform to connect with younger audiences. However, the concept of the metaverse lacks consensus, and there is limited academic research on its impact on fashion brands' marketing strategies and immersive brand experiences. To address these gaps, this study employs a qualitative approach, utilizing immersive netnographic research conducted on gaming and virtual platforms to firsthand observe luxury brands' strategies. The analysis reveals three key strategies employed by fashion brands in the metaverse. Firstly, luxury brands establish their own virtual spaces within gaming platforms and virtual worlds to showcase their products and engage consumers. Secondly, brands strive to captivate and involve consumers through highly immersive experiences. Lastly, economic transactions within the metaverse predominantly rely on non-fungible tokens (NFTs), enabling brands to sell digital assets and maintain exclusivity. This study not only identifies the primary strategies of fashion brands but also serves as a model for future research endeavors aiming to conduct immersive netnographic studies in this evolving landscape.