The possibilities of fashion within the world of the metaverse: a far cry from the past or an opportunity lurking around the corner?
That’s a question we get to answer more often, and which we also continue to ask ourselves. In order to provide a concrete answer to this question, we would like to take you into the world of the metaverse: what is it, how does the consumer interact with it and should you, as a brand, already anticipate this trend today?
First things first, the somewhat vague term ‘metaverse’ refers to an interactive, creative digital environment where people live, work, play and consume such as they do in their daily lives. One could describe this as a Sims-world, but then for more extensive as back in the days. Linked to the growing gaming industry, we see customers spending more and more time in this digital world. It’s a way to express yourself in a second life as a human being.
Today, there is still an underestimation of the value which can be created by being present in this world with a virtual product for instance. It’s a new point of contact with your customer. Some brands are already testing with metaverse such as Ralph Lauren. By collaborating with a South Korean social network app, they have created a fashion collection which can be worn by avatars. As for some customers, the digital world is an additional extension of their own personality, the true Ralph Lauren fans, of course, also want their avatar to have this exclusive look and feel.
Another important term we hear more often is the NFT or nonfungible token. Here we go a step further, as NFTs are a unique crypto asset, which only one person can own via the blockchain technology. As a result, we see significant amounts of money being paid for an NFT such as e.g. Homer & Bart Simpson which were sold for several million dollars. you read it right, it can sometimes sound too crazy for words but still this forms a well established digital business model.
What is our conclusion & how can you prepare yourself for the Metaverse?
The metaverse is for sure a very interesting industry which we need to monitor closely in the upcoming years. However, should you as a fashion brand start to make the investment yet? The capital and technology required isn’t accessible for all fashion brands. High fashion is already capitalising on this popular trend, which is predicted to generate revenue during the coming five to 10 years. Therefore, we would advise: follow the developments in this market, learn from the mistakes & results of the first movers, and get ready to be the first to jump on the bandwagon of metaverse as soon as it opens up the possibilities for the non high-fashion brands on the market.