Luxury brands experiment with sales in the metaverse Grupo Milenio

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    In December last year, as Christmas approached, a teen fashion brand Forever 21 tested many new products. “Y2K style” (2000s style) pieces were all the rage, as were flared pants, strappy crop tops and puffy accessories. The most popular design, however, was a pink beanie hat with the word FOREVER written on it.

    In fact, the beanie never existed in the sense that most of us understand it. It was a virtual item that could be purchased at roblox, Online gaming platform created in 2006It currently has around 60 million users and is considered one of the earliest iterations of the metaverse.

    Beanie hats have been very successful. It cost about $500 to design and launch. With over one million units sold, it has become one of the most popular items in F21 history. His presence was also felt offline in November. The brand has released a collection from the metaverse to the real worldA limited edition of its pink beanie ($14.99) allows consumers to have a look similar to their own avatar.

    Beanie’s journey from the metaverse to reality is a trick the company hopes to repeat.As F21’s director of marketing and digital, Jacob Hawkins, explains, Roblox and its competitors could: increase. R&D laboratory among them Consumers are guinea pigs“You can find trends that your customers love and find whole new ways to design and sell your products,” she says. Fashion and other industries have already coined a term for this combination of physical and digital. “phygital”.

    Goldman Sachs is Metaverse economy could reach $8 billion (mdd) Twenty years later, the fashion brand set to experiment. Even the most respected luxury brands are eager to win over young consumers and seek to make a name for themselves in this curious new world.

    In early 2022, Gucci will become the first luxury Maison to I had acquired the digital space of the sandbox metaverse A store space created with galleries featuring NFT artwork and vintage fashion pieces. He also released a $12.99 virtual sneaker. This can be ‘skinned’ via augmented reality on the phone.

    In November, the famous Burberry also partnered with a popular online game to target Gen Z audiences. Mine Craft. The brand’s signature tartan check was a perfect fit for the product, which is famous for its boxy graphics.The collaboration he consisted of two parts. Players can download digital skins for freeOr costumes, worn in-game, Burberry too Minecraft Inspired Royal Collection Releasedwhich included a roughly $470 scarf with pixelated Burberry lettering. .

    These experiments are key to understanding how the concept of luxury evolves in the metaverse. “Even if you can’t buy a Gucci bag in the real world, in the Metaverse he can buy it for $5,” says Alison Brinje, director of marketing at Launchmetrics. The brand is Consumers owning a virtual product are more likely to purchase a physical product when they have more money. “This is a gateway for building relationships with consumers,” adds Brinje.

    Balenciaga, Prada, and Thom Browne are among the designers offering Metaverse avatar outfits for under $10. Many image-focused companies remain cautious about the web3 opportunity, but some have taken a nosedive.

    The appeal of the brand is clear, but why would consumers want to spend money on virtual sneakers and handbags? One answer may lie in the luxury shopping experience itself. Security guards, beautiful interior, beautiful but terrifying, personal, a place where you can’t touch unless you can buy the goods you see. Compared to such an exclusive environment, Metaverse is a less intimidating setting. for young consumers Accustomed to interacting and using digital money.

    Another trend is Augmented reality collaborationConsumers can try out 3D versions of clothing and accessories in their bedrooms before ordering products.

    through the app Users can use their smartphone’s camera to overlay a 3D digital version Apply the product to your face or body, similar to the popular Snapchat filters.snap says so Estée Lauder, Mack, Gucci and Dior Launch Augmented Reality Campaigns Try sneakers and makeup that led to direct sales. For example, Dior’s digital his sneakers had 2.3 million views and six times his return on ad spend.

    But it’s not all about luxury brands.Many people are interested Intellectual Property and Compliance Issues in These New Platforms, and may blur carefully stored images. “It’s nice to have well-dressed avatars in the sandbox, but when Gucci and Balenciaga fashion appears in ‘adult’ content, it’s an image problem,” said Gaetan Cordier, a lawyer at Evershed Sutherland in Paris. will occur,” he said. At this time, it is not clear how, or even if, these issues can be resolved.

    Some of these dangers have already been demonstrated by another digital space, NFT. last summer, Tiffany & Co has given CryptoPunk NFT owners access to a custom necklace sale. These “NFTiffs” sold for 30 Ether each, priced around $50,000 at the time, and owners also received physical pendants encrusted with diamonds and made with images of CryptoPunk’s pixelated characters. rice field. The collection he sold out in less than 30 minutes, and jewelers estimated he made over $12 million. the current, NFTiff has a minimum resale price of around 9 Ether, or around $13,000., according to CoinGecko analysts. The value of a diamond pendant can hold up pretty well.

    Still, Ian Rogers, Experience Director at crypto Ledger, makes it clear there is no turning back. “People in the luxury sector need to understand NFTs and digital ownership better than anyone else.”After all, she said: Buy to appreciate aesthetics, give status, and be part of a small group that appreciates the same.

    Financial Times Limited. Disclaimer 2021


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