Research by Morgan Stanley estimates that demand for digital products in luxury will reach $50 billion by 2030. How will this new mode of B2C relationship transform the deeper identity that drives our purchasing behaviour? Discovering the Metaverse
In collaboration with altavia.disko
Accompanied by Facebook Inc.’s announcement to change its name to Meta, to capture what appears to be the next chapter in customer journey innovation, our understanding of virtual reality and digital experience is about to be completely revolutionised by the advent of the Metaverse. According to a research by Morgan Stanley, demand for digital products in luxury will reach $50 billion by 2030 LINK. The impact of this new way of relating will likely involve the deeper identity that drives our buying behaviour as consumers. But what are the useful elements to guide us in exploring this ‘final frontier’?
Discovering the Metaverse
Issue 1 > The brand as an opportunity for Gamification
Gamification offers brands the opportunity to create a new space for playful interaction with the customer. The world of video games is teaching fashion how to involve people in new virtual experiences that are increasingly realistic and engaging. Already today there are frequent collaborations between big luxury brands and video game companies. The Metaverse, if well exploited, will offer brands the possibility to interact, entertain and excite their audience and speak the language of Generation Z. Which is destined to determine the largest part of the fashion sector’s turnover.
Issue 2 > The brand as retail space
The potentially infinite spaces of the Metaverse can be thought of from a retail perspective. Luxury brands will be able to bypass the intermediation of retailers and distributors, not only by directly proposing their digital products in virtual flagship stores, customised to offer the best and most complete shopping experience. But also by promoting the direct sale of NFT and physical products. Failure to take advantage of this new channel could, over time, result a major loss for those who are forced to chase down the first movers who are already investing in this direction.
Issue 3 > Sustainable development
The road to sustainability necessarily passes through reducing the number of products placed and consumed in the market. In the Metaverse, the value of the product is experiential and does not necessarily require the consumption of raw materials. Of course, it will be essential not to lose sight of the primary objective of sustainable development. That is the reduction of CO2 emissions, paying attention to the impact in this direction of the implementation of new technology and related infrastructure.
Issue 4 > Customer Journey & Data Inspiration
The brand, in its new guise as an entertainment venue and retail space, will have the opportunity to create a new, more direct and personal relationship with the customer. Continuous interaction within the Metaverse will allow access to a multitude of constantly updated data on consumer preferences and feelings. The production of big data will be an important return and its analysis will further become a fundamental tool to guide strategic choices and brand positioning.
Number 5 > Keep It Human
This is a piece of advice to fashion brands that choose to explore the new world. The real competitive advantage will be for players who know how to make technology live as an experience of the human being for the human being. Innovation is not to be endured but is part of an identity journey that sees the human experience as a synthesis of digital and analogue in continuous evolution. Fashion must not lose sight of its fundamental function as an expression of our most authentic identity and, even in the hybrid world of the Metaverse, it must aspire to be “fashion for humans“.
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