Why Fashion Brands Are Drawn to the Metaverse

Blocktech Brew reports that the market for fashion in the metaverse will surge to $6.61 billion by 2026. This upward trajectory is underpinned by an impressive compound annual growth rate (CAGR) of 36.47%. Fashion brands are entering the metaverse to build interactive and immersive virtual experiences that engage users in 3D environments, including digital fashion shows, pop-up shops, and virtual showrooms. By venturing into the metaverse or 3D internet, these companies achieve several strategic objectives: they effectively promote their products, establish deeper connections with consumers, foster brand trust, attract new demographics, and provide highly personalized digital experiences.

The metaverse presents an opportunity for users to step into roles as co-creators and co-producers of fashion content. This evolution could democratize the fashion industry, shifting the power dynamic and giving users greater influence and control over their style and identity. It could also reshape how fashion is conceived and consumed in the digital age.

Enhanced brand engagement 

The metaverse presents fashion brands with a new space for enhanced brand engagement and innovative marketing strategies. By establishing a presence in these immersive spaces, fashion labels can create deeper connections with their customers by allowing them to interact with items virtually, try on a brand’s clothes, and join a community of fashion enthusiasts.

Here are some ways fashion brands enhance brand engagement in the metaverse:

1. Virtual brand experiences and stores: Fashion brands are seizing the opportunity to create virtual stores on metaverse platforms to allow customers to explore and interact with products and brand representatives in a highly engaging manner. For instance, Gucci collaborated with Roblox to launch the "Gucci Garden" – a virtual exhibition space where users could engage with the brand’s products, attend themed events, and acquire limited-edition virtual items. The activation attracted nearly 20 million visitors in the first week of its launch. Other unique store experiences include Nike's "NIKELAND" on Roblox, where users can engage with virtual games and experiences while exploring the brand's products and ethos. 

   
   

2. Virtual fashion shows and events: The 3D internet allows fashion brands to bridge the gap between physical events by creating 3D virtual fashion shows with immersive elements and runway experiences that defy traditional real-world counterparts. They also allow unlimited individuals to attend events, join meet-and-greets or parties, engage with interactive installations, and view unique digital garments. For example, Dolce & Gabbana held a digital fashion show in Decentraland, where attendees could explore the event space, view their bespoke collection of 20 looks, and even purchase exclusive digital wearables. Similarly, Etro hosted a virtual fashion show on the blockchain-based platform Bemuse, where viewers could experience the event through virtual reality and purchase digital wearables inspired by the collection.

   
   

3. Virtual fashion and digital wearables: Fashion brands are exploring the creation of digital clothing and accessories that users' avatars can wear within virtual worlds. This new product type opens new revenue streams and allows brands to cater to the growing demand for unique virtual identities. Brands like The Fabricant, a digital fashion house, have been at the forefront of this movement, collaborating with established labels like Puma and Under Armour to create digital-only collections. Additionally, luxury brands like Gucci have created virtual sneakers, while Louis Vuitton recreated their iconic bags in the metaverse, offering these exclusive virtual items for purchase.

Boundary-pushing design

The metaverse offers fashion brands an unparalleled opportunity to explore designs unhindered by the physical world's limitations. This allows for creating avant-garde garments and accessories, transcending traditional manufacturing constraints and using unique materials, such as those mimicking water or fire.

Among the fashion trailblazers in the 3D internet is The Fabricant. Utilizing blockchain technology and 3D modeling, the brand crafts unique virtual fashion pieces that exist exclusively in the digital domain. These creations surpass the physical bounds of fabric and traditional crafting methods, embodying innovation that defies gravity and reimagines the essence of fashion. The fashion house also created an iconic ‘Irredecence’ digital dress that sold for a whopping $9500. 

The Fabricant Studio platform also allows users to create their own garments with exclusive fabrics, materials, trims, and accessories that can be worn or traded within the 3D internet. This feature also makes fashion designing more accessible for anyone who wishes to unleash their creativity and experiment with designs in a virtual space. With 3D internet platforms and tools offering capabilities to create bespoke garments, the metaverse has attracted a growing community of virtual fashion designers and artists redefining the boundaries of fashion through their digital creations. 

Traditional luxury fashion brands are also entering the metaverse with out-of-the-box virtual fashion lines created in partnership with digital creators and web3 platforms. By leveraging the capabilities of 3D modeling, VR, AR, and other immersive technologies, brands can showcase their digital garments in breathtaking virtual environments, creating interactive and captivating experiences for their audiences. For instance, Dolce & Gabbana created a 9-piece digital collection called ‘Collezione Genesi’ in collaboration with UNXD, displaying creatively crafted outfits representing the themes of ‘Venice and its glass’ and the ‘tradition of the toast.’

Democratization of fashion

The metaverse is shaking up fashion, making it more inclusive and accessible for designers and individuals. The 3D internet is an accessible platform for anyone to become a fashion designer or model, regardless of location or physical appearance. Independent designers and brands are bound to flourish in the 3D internet, where they can create proprietary designs and fashion pieces that can be sold on metaverse marketplaces. These virtual platforms also offer gender-neutral and inclusive fashion options, making it easier for diverse audiences to join the space.

Traditionally, fashion has been a means to showcase one’s personality, culture, and social standing. Virtual fashion in the metaverse is becoming more individuality-driven than the physical world, making it a gateway to an inclusive space. The 3D internet allows for endless creativity, where fashion is not just about clothes but about expressing one's true identity. Offering tools and features to design and wear one's own garments helps democratize the space.

Platforms like IMVU and Decentraland are leading this change. IMVU is a virtual world where users can personalize their avatars and choose unique fashion styles from the IMVU Catalog. The catalog includes a variety of skins, clothes, accessories, and hairstyles, offering an excellent avenue for self-expression. The platform’s Creator Program also allows users to design and sell their own wearables. Decentraland, on the other hand, is a blockchain-based virtual reality platform where users represented as avatars can create, buy, sell, and trade digital assets like clothes, accessories, and other wearables. It represents a decentralized digital world that merges gaming and digital commerce, allowing users to create and monetize assets designed.

Another leading platform called Colonii and Genies is pioneering the creation of high-fidelity avatars by investing in the creation of state-of-the-art digital personas that blend novelty with fashion. These platforms draw inspiration from physical runway collections to offer users digital personalities that boast distinct styles, enabling them to showcase their individuality and creativity. To enrich their offerings, Colonii and Genies and platforms like Brand New Vision leverage fashion expertise and collaborate with digital fashion houses, such as Blueberry. This synergy allows them to introduce wearable items accessible across various platforms, including Roblox, Zepeto, and Second Life, providing a broad spectrum of stylish customization options for avatars.

Brand storytelling

In the digital landscape, the metaverse emerges as a platform for fashion brands to forge immersive storytelling experiences that profoundly resonate with consumers emotionally. Fashion brands have been leveraging immersive technologies like augmented reality (AR) and virtual reality (VR) to create engaging brand experiences and interactive storytelling. 

Here are some examples of AR-powered virtual pop-up stores and experiences in the fashion industry include:

• Burberry: The luxury brand Burberry partnered with Google to introduce an AR-powered virtual pop-up store. The brand integrated AR into various online channels, allowing customers to experience products in 3D directly from their online searches. This innovative approach enhanced the personalized luxury commerce experience, managed customer expectations, and provided a more realistic view of products before purchase, reducing the need for in-person interactions and potential returns. Burberry's use of AR in global campaigns, such as collaborating with artists to create AR features in their iOS app, demonstrates how luxury brands can connect with consumers through immersive and interactive storytelling, enhancing brand engagement and creating a more connected customer experience. 

  
  

• Zara: The fast-fashion retailer Zara experimented with an AR campaign by placing interactive displays in 120 stores worldwide for two weeks. The AR features brought virtual models to life in stores when a mobile was held up to a shop window. The virtual model displayed selected looks from the store and allowed onlookers to click through to buy items.

  
  

• Adidas: Adidas utilized augmented reality in pop-up advertisements to showcase its environmental initiatives. For instance, they held a gamified mobile AR experience at their main shop in Paris to demonstrate converting recycled plastic into products. By incorporating AR technology, Adidas engaged customers with interactive and educational experiences, highlighting their sustainability efforts innovatively.

Fashion brands can utilize the metaverse to create immersive digital worlds, engaging consumers beyond transactions with interactive and narrative-rich environments. This engagement transforms the brand-consumer relationship into a more profound emotional connection by making consumers part of the brand's story. The deep immersion facilitates a stronger emotional connection by making the brand experience more personal and memorable. Brands also leverage AR and VR technology to offer highly personalized experiences by enabling virtual try-ons, immersive shopping environments, and customized product interactions tailored to individual preferences.