What's next for brands in the metaverse? How can luxury brands appeal to customers in this new space?
Just like in the retail world, luxury brands are on the cutting edge of the latest trends and technology in the metaverse. These brands come from a long history of trendsetting, creativity, and appealing to customers through exclusivity.
So what's next for brands in the metaverse? How can luxury brands continue to stay relevant and stay on brand? Read to learn more.
Luxury's Gateway to the Metaverse
Prestigious brands are as much about adaption as they are about tradition. The world's most iconic brands moved seamlessly into social media, and are now evolving once again – and finding ways to dive headfirst into the metaverse.
When it comes to luxury brands, there are three characteristics to remember: exclusivity, price point, and heritage. The perfect balance of all three components allows brands to maintain their aspirational appeals to the larger consumer markets.
The factors also offer a natural lead into Web 3.0:
- Exclusivity -> Rarity
- Price Point -> Currency
- Heritage -> Longevity
Rarity
Even as technology continues to advance in the world of e-commerce and shopping behaviors, the foundation remains the same: little supply = high demand.
NFTs fit perfectly into this model. Collection drops and digital fashion collections display properties of "rarity." So, collections with several thousand individual collectibles may contain only a handful of pieces that have unique properties, rocketing the value of these limited pieces.
Currency
The price point also relates to the supply and demand cycle. The more limited an item becomes, the higher in value it appreciates. As luxury brands represent premium quality, they demand a premium cost. This principle holds true in the digital sense, too.
In the metaverse, the goal is not to create a parallel digital marketplace for luxury products, but to show how evolution is possible with the technology we already have.
With this digital evolution also comes a change in how consumers view currency. Web3.0 currency uses means such as stable coins and alt coins which are beginning to take the place of credit cards and government-issued currencies. This gives customers more control over pricing and ownership of the currency.
Longevity
Though the metaverse is just beginning, we've already seen luxury brands succeed in their efforts.
A few of our favorite examples combine components of Web3.0 foundational elements such as community and interactivity with gaming and virtual reality.
Successful brands are taking advantage of innovative new ways to display their designs, maintain their aspirational appeal, and influence their customer base.
Digitalization in any form will cement brands' identities and help create an everlasting legacy for designers and their creations, as trend cycles are coming and going faster than ever before.
Takeaway
The metaverse is young, and opportunities are endless. Brands, advertisers, and people can meet and connect in new and unprecedented ways. In the metaverse, perception is reality, and luxury brands are front of the line in this exciting new world. Contact us now to find out how to get started.