Tugba Sabanoglu
Research lead covering Non-food CG & Retail
Fashion in the metaverse - Statistics & Facts
Before Mark Zuckerberg announced Facebook’s name change to Meta to the surprise and sniggers of social media users, the metaverse was a niche and futuristic concept familiar to the tech and science-fiction aficionados. Yet now, it has become the catchphrase that sets the scene for the next stage of the internet. Facebook’s rebranding of Meta as one of the building blocks of the metaverse was powerful enough to trigger immediate response from the world’s biggest retail and consumer brands. In the week following Zuckerberg’s Meta presentation, Nike made patent applications for a number of its logos and slogans, and in December 2021 acquired the virtual sneakers company RTFKT. Nike is one of the growing number of retail brands that are silently preparing their launch into the metaverse where fashion is flaunted not as physical goods but as virtual assets. According to a study, Nike applied for 12 IoT patents in the three months running up to May 2022.
For luxury brands, the immense popularity of gaming platforms is an opportunity to reach out to younger consumers and test the waters before a more robust investment into creating virtual and digital goods. But there are also brands that are ahead in the digital game with wildly successful and lucrative virtual goods sales and NFTs. Take Dolce & Gabbana’s virtual collection Collezione Genesi, which sold for 1,886 ETH, or around six million U.S. dollars. Another pioneering sale was Gucci’s first NFT, a video inspired by its recent Aria collection which auctioned for 25,000 U.S. dollars. Gucci’s expansion into the metaverse was not limited to its high profile NFT. The company recently purchased space in The Sandbox, one of the leading virtual real estate platforms building the metaverse. Fashion's special interest in creating experiences in virtual worlds will likely only increase as developers, designers and creators of the metaverse are eyeing the opportunity that the fashion industry presents. Following the virtual fashion events that took place in 2021 due to the coronavirus (COVID-19) pandemic, global fashion events of 2022 were bookended by a virtual fashion week in the metaverse, organized in partnership with Decentraland. The move to the virtual worlds was not a one-off event necessitated by the pandemic though. Decentraland is already holding the second Metaverse Fashion Week between March 28-31, 2023.
Into the metaverse through gaming: fashion in the virtual world
The metaverse is not quite here yet, but it has already blended into the digital strategy of retail brands. Many names in the fashion and luxury retail sector have geared up for the envisioned virtual and immersive future, releasing virtual clothing, dropping NFTs, and minting their presence in the gaming world. Gaming, in particular, has been key in the soft launch into the experiential, digital and immersive experiences that metaverse promises. In 2021, Gucci showcased its Gucci Garden experience on the gaming platform Roblox, allowing users to purchase avatars and Gucci clothing items, while Balenciaga introduced skins and outfits on Epic Games’ Fortnite. Burberry, Ralph Lauren, and Louis Vuitton were other luxury brands trying their hand at virtual goods and NFTs through collaborations in the gaming world. Luxury's gaming partnerships seem to pay off, at least with luxury shoppers. According to a study conducted with consumers worldwide, just over one-third of consumers said they would be open to purchasing digital items or NFTs from luxury brands such as Chanel, Louis Vuitton or Gucci, but interest in NFTs from high street brands or even digitally native brands created solely for virtual worlds was lacking.For luxury brands, the immense popularity of gaming platforms is an opportunity to reach out to younger consumers and test the waters before a more robust investment into creating virtual and digital goods. But there are also brands that are ahead in the digital game with wildly successful and lucrative virtual goods sales and NFTs. Take Dolce & Gabbana’s virtual collection Collezione Genesi, which sold for 1,886 ETH, or around six million U.S. dollars. Another pioneering sale was Gucci’s first NFT, a video inspired by its recent Aria collection which auctioned for 25,000 U.S. dollars. Gucci’s expansion into the metaverse was not limited to its high profile NFT. The company recently purchased space in The Sandbox, one of the leading virtual real estate platforms building the metaverse. Fashion's special interest in creating experiences in virtual worlds will likely only increase as developers, designers and creators of the metaverse are eyeing the opportunity that the fashion industry presents. Following the virtual fashion events that took place in 2021 due to the coronavirus (COVID-19) pandemic, global fashion events of 2022 were bookended by a virtual fashion week in the metaverse, organized in partnership with Decentraland. The move to the virtual worlds was not a one-off event necessitated by the pandemic though. Decentraland is already holding the second Metaverse Fashion Week between March 28-31, 2023.
