The Real Reason Luxury Brands Want In On Metaverse Fashion Week

Catwalk shows from Tommy Hilfiger and Elie Saab. The grand opening of a flagship Selfridges store. An afterparty hosted by Dolce & Gabbana. It all sounds very exclusive. But the truth is that this is Metaverse Fashion Week (MVFW) and you don’t have to be Anna Wintour to get a front row seat; anyone can get an Access All Areas pass. On Wednesday March 23, virtual reality platform Decentraland—which lets users create content, explore different online worlds and trade in cryptocurrency—launched the world’s biggest, entirely virtual fashion week. Dubbed "fashion's biggest digital experiment," the four-day event will see a tour-de-force of fashion houses, brands, designers and fans gather around multiple catwalks in Decentraland’s “Luxury Fashion District.” Need a visual? Okay, imagine hundreds of different animated avatars in a colorful, funky space checking out digital clothing drops and "trying on garments." They can chat with each other and the designers, too. Some of the biggest names in the industry are lapping it up. But why? Opening the door to digital wardrobes For some, it may seem novel to spend money on items that can’t be worn or even touched, but virtual fashion is already big business. Ever since Facebook unveiled its blueprint for a simulated digital world, luxury brands have been investing in (and successfully shifting) NFT stock. In 2021, Dolce & Gabbana raised $6 million auctioning a glittering selection of virtual outfits. More recently, Gucci partnered with Superplastic on a series of 250 digital collectibles and forecasting that a significant slice of future revenues will be made through digital goods this year. This trend has even given rise to digital-only design houses including The Fabricant. MVFW is set to build on this success and demonstrate that there is demand and a clear path forward for digital fashion pieces that anyone with a cryptocurrency wallet can own. “Although we see significant demand from brands hoping to enter the metaverse, there are many questions around how it works,” explained James Treacher, managing direct at Web3 agency Hype Partners. “I'm expecting MVFW to demonstrate there is not only a clear path for brands to create engaging metaverse experiences, but also significant demand from fans and collectors to purchase and own digital pieces as NFTs, literally opening a new world of possibilities.” A recent study from Vice’s agency Virtue Worldwide, which interviewed 3,000 people across eight markets, indicates that digital fashion is already worth as much, if not more, to people than real-life fashion. Virtue says 65% of people are prepared to pay the same or more for a virtual fashion item versus its physical equivalent and on average respondents expect nearly half (46%) of their overall wardrobe to be digital by 2027. This wasn’t just Gen Z-ers either—the sample included an equal mix of millennials and Gen X-ers, too. For Morten Grubak, global executive creative director of Innovation, just like in the real world, this drive is coming from consumers’ desire to play with their identity and showcase their personal style. “People will always look for opportunities to customize their avatars. That’s one way for brands to get involved. Our findings represent a huge moment for [agencies and brands]. They show a state of mind where people understand the value of digital goods, not just physical ones.” A digital gateway to younger generations MVFW is about more than sales. For now, luxury brands are using the experience as a hotbed to play around with their own metaverse capabilities and strategies. “It’s all about reimagining what fashion events could look like. It’s the first of its kind, so it’s going to be fun to see how brands are showing up,” added Grubak. U.S. denim giant Tommy Hilfiger is set to showcase its Spring/Summer '22 range at the event. It’s also partnered with metaverse marketplace Boson Portal on a Web3 store experience, where people can buy virtual jeans but also redeem NFTs for “physical products delivered straight to the customers’ door.” Tommy Hilfiger is debuting its Spring/Summer ’22 range at MVFW "The appetite for digital experiences has never been stronger and the metaverse is offering new avenues to connect with new brand fans. At MVFW we’re excited to meet fans on their own terms, inspiring and surprising with our products in unique ways,” said Avery Baker, chief brand officer for Tommy Hilfiger. Baker acknowledges that being part of the metaverse journey from the onset will enable her team to learn how to “engage effectively” in this world. As a bonus it’s also a gateway for younger consumers to connect with the business. She continued: “As a brand that has always been on the pulse of pop culture we are more focused than ever on providing unexpected brand experiences in both the physical and digital worlds." Justin Banon, co-founder of Boson Protocol, says luxury brands testing and playing in the space shouldn’t expect to take home any concrete learnings quite yet, however. “Commerce is becoming gamified, digital, physical and experiential. For marketers, it's no longer about KPIs: it is about engagement," he said. "The metrics are about really deep engagement, providing the functionality and a level of immersion and richness rather than a 2D detachment from identity.” The Metaverse Multiverse: How Companies Are Navigating a Virtual Wild West