Fashion in the metaverse: A study of how luxury streetwear brands are expanding into the metaverse and the implications for the future of luxury fashion and their younger Gen Z market.
Introduction
The rise of the metaverse has accelerated over the last year significantly and we are now seeing many sectors and brands look at how they can access it. There is a substantial rise in fashion brands looking to capitalise on the economic opportunities it poses as it will not only affect how people interact with their products but will also affect how brands craft and produce garments. Twenty-nine years ago, science fiction author Neal Stephenson created the term "metaverse" in his 1992 novel "Snow Crash". Here Stephenson uses it to describe a virtual reality that has succussed the internet and allows people to create digital versions of themselves to explore the online world. In theory, the "metaverse generally refers to the concept of a highly immersive virtual world where people gather to socialise, play and work” (Merriam-Webster) and now spend money. The main difference between current virtual reality and the planned usage of the metaverse is size. Virtual worlds and realities are limited by game and platform size, but the idea of the metaverse is that it will envelop the entirety of the internet.
As a new and emerging industry, research around the metaverse can be confusing due to many technical terms and the fact that many leaders in the field cannot agree on what the metaverse may be. My research will instead look more at how we are already interacting with it and why consumers are responding. The research will first present an overview of technological advancements which have made the metaverse possible and will then go on to analyse how three current streetwear brands are expanding into the metaverse and this new direct to avatar economy (Hackl 2021). In the final section, it will be investigating how this expansion has affected younger Gen Z consumers and their spending habits, by assessing how this geographic is already using the metaverse and interacting with luxury streetwear brands.
Methodology
This research paper uses both primary and secondary research to conduct a thorough discussion into how brands and consumers are interacting with the metaverse and how this relates to future advancements in design and marketing for fashion brands. This project has gained ethical approval to be conducted.
Primary research was guided by narrative analysis and thematic analysis of three brands' recent projects within the metaverse. These include a playthrough of Balenciaga’s "Age of Tomorrow" online game, The Fabricant's collaboration with Toni Maticevski and their "Iridescence" dress and the RTFKT sneaker collaboration with Fewocious and their avatar collaboration with Takashi Murakami. Secondary research takes the form of analysing secondary quantitive data from reports produced by market researchers Mckinsey and Company and Mintel; namely their “true Gen: Generation Z and its implications for companies” and “luxury goods retailing: Inc impact of COVID-19 – International – August 2020” reports will be used.
Secondary research for the exploration into the metaverse has come from industry experts such as Cathy Hackl and Matthew Ball, academic articles such as “Särmäkari, N. - Digital 3D Fashion Designers: Cases of Atacac and The Fabricant” and journalistic based reports from Vogue business, Business of Fashion and Forbes.
Chapter One|: Building the metaverse
1.1 A history into virtual worlds
Cornell University professor Robert Bloomfield has defined virtual worlds as "computer-mediated environment[s] that simulate … real-world physics with sufficient fidelity, and in which one or more human participants can control one or more actors.” (Watstein and Czarnecki, 2010) Virtual worlds have been around for about 25 years. The likes of "The Sims" and "Second Life" have now built huge communities of players. A recent EA financial report released in February 2021 announced that The Sims 4 has 33 million players. In these virtual worlds, players can generate unique avatars which can develop and interact with many communities within their selected program. This idea of modification is popular among teens. It gives them the option to play as an avatar resembling themselves; or express their individuality by creating a character highlighting their desires more, making fashion a huge aspect of these virtual worlds. Brands have been interacting with virtual worlds since the beginning, due to the large scope of consumers they could reach. In 2013 it was estimated that “2.5 billion people were in the cyberspace world” (Cudworth, 2014). That number has increased to 5.2 billion (Internet World Stats, 2021).
As a sector still on the very cusp of our understanding, definitions can be vague and vary hugely from expert to expert. Microsoft’s announcement of Mesh for Microsoft Teams describes it as “a persistent digital world that is inhabited by digital twins of people, places and things." (Roach 2021) Whilst Cathy Hackl (“A globally recognised metaverse/ web 3.0 strategist” (Linked In, 2021)) describes it as “a further convergence of our physical and digital lives. It’s about shared virtual experiences.” (Reese, 2021). Whilst these definitions do not give us much information on what the metaverse will be, it provides a starting point for brands and businesses to interpret and develop their business needs. Another area many experts cannot decide on is how long the metaverse will take to build. Mark Zuckerberg announced that he expects the key features of his idea of the metaverse to be mainstream through Meta in the next five to ten years. This is because we already have access to many elements such as Ultra-fast broadband speeds, VR headsets and always-on online worlds. (Snider & Molina, 2021) Others, like Venture Capitalist Matthew Ball, expect the metaverse to take decades to be fully functional due to current limitations on our ability to produce millions of synchronised users all at once (Ball, 2021). The metaverse would also require massive overhauls in company policies and interactions with consumers. The recent increase in metaverse popularity is promising, but until the term can be defined and people can understand what can be expected, there will always be an unwillingness to be involved.
1.2 An introduction to NFTs
Non-fungible token or, NFT for short, is used to describe the certificate of authenticity and ownership of digital possessions your avatar owns which is recorded on the blockchain. They are set to be a huge part of the future for luxury streetwear brands. As an expansion on the virtual world, the metaverse means your avatar and any NFTs (Non-fungible tokens) will be transferable across programs. In the metaverse, consumers can spend real money, or cryptocurrencies, to buy digital items. These items will never exist in real life but across the metaverse on your avatar.
NFTs can be linked to any form of digital assets, from videos and fashion to art and even tweets. Jack Dorsey recently sold his first tweet as an NFT for $2.9 million on "Cent" a blockchain-powered social media network (Locke, 2021). Fashion has been increasingly engaging with NFTs, especially as gaming and digital fashion become more intertwined in the metaverse. Selling NFTs through a blockchain database allows luxury brands to establish a higher level of authenticity. This is achieved by allowing consumers to track information about the material, age and previous owners, ensuring a transparent experience. NFTs have also had an impact on the dematerialisation of the fashion industry. Currently, brands and designers are trying to find new, innovative ways to be more sustainable. Digital garment production produces around 97% less CO2 than physical garments, however, mining NFTs requires a massive amount of energy consumption in the real world, making the drive for more sustainable power more important than ever.
1.3 How are we interacting with the metaverse?
Our current everyday interactions with the metaverse are predominantly through augmented reality across Snapchat and Instagram filters. Snapchat hosts a large and heavily engaging Gen Z consumer base and has been a key platform for brands such as Ralph Lauren and Gucci. Both launched virtual projects with Snapchat including Bitmoji avatar outfits and AR Snapchat lenses to allow users to virtually try-on clothing and shoes. Snapchat is trying to expand on these elements so they are not only available through your phone camera but also through glasses similar to those of VR headsets, which have been growing in popularity over recent years. As VR headsets are becoming more user friendly, we see an increase in brands wishing to enter the market. Facebook acquired Oculus, a virtual-reality company in 2014 for £1.4 billion (Francombe, 2021). VR headsets like this are for a more immersive gaming experience, but they provide the groundwork for how people will access virtual spaces through the metaverse. What makes current VR headsets poor hardware for this idea of a persistent metaverse is their current system which is often quite large and heavy. This is where brands like Panasonic come in. Panasonic has developed the world’s first HDR-capable UHD VR eyeglasses (Panasonic, 2020), a much smaller compact system to view the world of VR in. In 2020 Facebook, now Meta, also released images of proof of concept for their version of VR sunglasses (Peters, 2020).
Developments like these with VR headsets show how dedicated big tech brands are to developing ease of use for consumers in the metaverse. Facebook has rebranded to “Meta” in the hope to be seen as a “metaverse company first” (Zuckerberg, 2021). But it is not only through technology brands that we are interacting with the metaverse, platforms like Epic games and Roblox are collaborating with brands from restaurants like Wendy’s to film directors like Christopher Nolan. Retail estate agencies are even beginning to sell virtual land within the metaverse for brands and companies to build their virtual hangouts, shops and any other experiences they want to offer their consumers. To help understand what needs to be done in these metaverse spaces, brands are beginning to create metaverse teams. Nike recently developed their Metaverse studio, employing Andrew Schwartz as “Director of Metaverse Engineering” and Eric Redmond as “Metaverse Studio Lead”. Their roles involve redefining Nike's digital world and helping them lay the foundations for Nike in the metaverse (Farooqui, 2021). Whilst some brands like Nike are just beginning their metaverse journey, others are already interacting with their Gen Z consumers in these spaces, with luxury streetwear brands making the biggest impact.
Chapter Two|: Brand Case Studies
2.1 Balenciaga
One luxury brand making strides in gaming and virtual world elements of the metaverse is Balenciaga, who have been dipping their toe into the gaming industry since 2020. Then, they partnered with Sketchfab to launch their Fall 2021 look book alongside the release of their video game, Afterworld: The Age of Tomorrow, achieved through collaborations with Unreal Engine and Dimension studio, where they hosted a digital fashion show. Users could walk past digital avatars modelling the clothing whilst other items were placed around the room as floating pieces. Set in the year 2031 in New York, you play as the game’s hero after selecting one of fifty characters who complete tasks and interactions over five zones (Socha, 2020).
The zones cover various themes from digital store spaces to digital social events. For example, in zone one, we see a virtual store located in a concrete space. It features racking and shelving of products and other elements such as a waterfall and greenery to give the feel of a futuristic digital space. Moving outside you are greeted by advertisements on billboards for fully automated fresh air and food and drone bees, suggesting the world has entered a state where things can no longer be produced naturally. It demonstrates one way brands may use the metaverse in the future to promote products. As we enter zone four, you see a white rabbit and follow him through a forest to the “T-party” advertised earlier. Here you experience elements of how we may see social interactions in the future. We can see the avatars dancing and enjoying the music whilst layering elements, such as dancers made of light and textualised surrealist close-ups of plants and animals to add a digital edge. The final scene shows an avatar dressed in a full suit of armour standing on top of the mountain watching the sunrise. This sunrise symbolises for me the new dawn of Balenciaga as they begin this journey into the metaverse and digital fashion. In the show notes, Balenciaga describes the collection as clothing which “is meant to transform over many years” (Balenciaga, 2020). This concept is highlighted throughout the set design, as we see new ways to shop and store layouts, the cities architecture and transportation.
A year later, we see Balenciaga teaming up again with Epic games in September 2021 to launch virtual outfits (skins) for four of Fortnite’s most popular characters. Alongside these skins, they also launched a host of accessories and weaponry and an in-game store. The collaboration lasted one week in the game but they also produced physical garments including hats and hoodies. These were sold in stores and online, allowing players to own both physical and digital pieces of the collection. With 350 million users on Fortnite (Iqbal, 2021), the collaboration allowed Balenciaga to connect with consumers who previously may have paid very little attention to them. The digital items were priced at a much more attainable level, the most expensive item costing 1,500 V-Bucks which roughly equals $12 (Bain, 2021). These digital items react with the user’s gameplay, changing colour due to damage amongst other features, setting them apart from their physical counterparts, which were being sold between $395 and $725. For Balenciaga, this collaboration was about “redesigning the lines between content and product” (Charbit in Business of Fashion, 2021). They managed this so effortlessly throughout this project, from initial marketing on billboards in major cities such as New York and Tokyo, then implementing them within the Fortnite platform in their creative mode hub (which half of Fortnite users spend their time in (Bain, 2021)). Right up to the point of final sale where customers could buy physical clothing through the digital store Balenciaga set up within Fortnite.
These elements blurred the lines between how we view physical and digital elements; offering the two is a key way to entice consumers into a digital market, especially Gen Z consumers. Labelled as “Digi-Sapiens” by Kerry Murphy, Gen Z combined with young millennials make up around 3.5 billion of the population and have 55% of the total spending power; many are finding their second home in these virtual worlds within the metaverse (Hackl, 2021). Around 81% of Gen Z reports playing video games (Newzoo, 2021), making it more popular than TV as a leisure activity. With this in mind, it is clear why Balenciaga has put such emphasis on targeting the generation through gaming platforms. For many luxury brands consumers, their reason for shopping with them is due to the heritage of the brand (Mintel, 2020). By targeting this age group through platforms important to them, Balenciaga have already begun developing a relationship with a new generation of consumers.
2.2 The Fabricant
Another brand leading the way into a more digital future is The Fabricant. The Amsterdam-based company is a leader in the creation of digital 3D garments. Founded in 2018, the brand describes itself as “operating at the intersection of fashion and technology, fabricating digital couture and fashion experiences” (The Fabricant, n.d.). They provide consumers with digital clothing for their avatars in virtual worlds and wearable AR filters. The brand now has over 50 employees (RocketReach, 2021) with roles from 3D designers, VFX producers and production coordinators, its founder, Kerry Murphy, has a background in film and visual effects and previously worked in advertising (Särmäkari, 2021). The Fabricant begins projects with a concept or brief from clients along with a storyboard, designers then begin draping on an avatar or visuals provided by the client: these could include; tech packs, flat drawings, photos or physical garments (Särmäkari, 2021). The Fabricant works with blockchain companies to sell their designs but, they also provide FFROPs (free file drops) allowing other creatives to use them as templates for their work. The Fabricant wants to “create an encouraging and empathetic community” and by sharing resources like this, they are opening this new field to all. The Fabricant are also currently in the process of building “The Fabricant Studios”, described as “a platform where anyone, anywhere can become a digital fashion creator and participate in the digital fashion economy” (The Fabricant, n.d.).
Collaboration is a huge angle for The Fabricant and provides a great way to connect with Gen Z consumers, especially as a niche brand. Collaborations give The Fabricant a chance to expand their knowledge but also their audience. One notable collaboration was with Toni Maticevski for Australian Fashion Week. The project aim was to introduce “Australian fashion lovers to the concept of being digital dressed” (The Fabricant, 2021) and create a “Digi-Couture” piece. The final piece was a futuristic overcoat, dubbed “The Animator Overcoat”, but the design started from very traditional methods. Maticevski initially sketched the garment before The Fabricants 3D design team took over, interpreting the design for a digital space. In still images, The Animator Overcoat appears to be made of hard, steel-like material, but when digitally viewed in the metaverse, the solid structure of the coat becomes a molten-metal like liquid, dripping down the length of the coat and into a puddle on the floor. This liquid speaks towards this new fluidity between digital and physical worlds. The garment was deliberately made gender-neutral, incorporating elements like broad shoulders and a silhouette that can be transferred to any body shape. Aspects of the overcoat were also inspired by sea urchins, apparent through the free-floating tentacles coming out from the coat's collar. The piece evokes imagery from the 1999 film The Matrix, particularly in these “tentacle” like appendages, which remind of the “Sentinel” machines which appear in the film. These elements of the design could be representing hostility towards entering the unknown, in this case, the digital sphere. With the support of Dress X (another brand that works with digital fashion), they offered visitors at Australia Fashion Week the chance to be photographed in the coat and receive a digital asset of themselves wearing it to share on social media.
Another of The Fabricant’s projects is their development of the Iridescence dress. It was the world’s first digital-only dress, selling on the Blockchain for $9500 via Portion (The Fabricant, 2019). The silver dress is comprised of a high neck boiler suit with a clear fabric draped over the top. It has an ethereal feel to it due to the threads of colour that run through it, like ink drops swirling in thin air. Overall, the design speaks to the fluidity we are now addressing within our bodies and genders; digital worlds and fashion allow us such freedom not found in the physical world. Today the dress is worth $200,000 (Debter, 2021). Through the Blockchain, information regarding the dress’s history and authenticity is readily accessible. Information like this is important to Generation Z, who value transparency from brands regarding their garments. One of The Fabricants founding principles is “fashion should waste nothing but data and exploit nothing but the imagination” (The Fabricant, n.d.) and the Iridescence project highlighted this goal, generating a large amount of press and beginning a movement into sustainable digital-only fashion. The Fabricant also works with brands such as Puma and Tommy Hilfiger, creating 3D models of garments to promote sustainability. Not only does it speed up production but also reduces waste, removing the need for physical samples to be sent back and forth between headquarters and factories (Williams, 2021). Even adapting just some elements of 3D workflows can help companies reduce costs and waste in the physical world.
2.3 RTFKT
Born in the metaverse during the early days of Covid-19 in 2020, RTFKT describes itself as an eclectic creator led organisation (RTFKT, n.d.), and primarily works designing digital sneakers and artefacts. RTFKT was acquired by Nike at the end of 2021 and while the terms of the deal have not been disclosed, estimations put RTFKTs value at $33 million in May 2021 (Kish, 2021). Even though the brand is less than two years old, they have made a significant impact on the digital fashion industry. RTFKT's NFTs offer buyers physical versions of their digital footwear alongside AR versions, which customers can access through Snapchat due to a partnership between RTFKT and social media platform. The brand is currently building its own app, which will allow virtual try-ons, content creation and other ways for users to connect with their NFT purchases. RTFKT founder Benoit Pagotto explains that the brand does not use traditional fashion as inspiration, instead, looking to gaming, anime and sci-fi movies (Business of Fashion, 2021). The fashion industry has often struggled to adapt to new platforms as they often want to keep to traditional crafting methods. Digital fashion is going to be built by young digital native designers and entrepreneurs, and RTFKT is keen to work with them.
Fewocious is one of these young designers. Pagotto discovered Fewocious, an 18 years old artist, through Twitter and reached out to organise designing a new sneaker drop. Within two weeks, they had completed three designs, edited the designs for 3D, put together the branding content and were ready to launch. The collaboration was marketed via Hypebeast and potential buyers could virtually try on the sneakers via Snapchat before their release (Binder, 2021). In total, the collaboration sold over 600 digital sneakers in 7 minutes, totalling $3,1 million, with each pair priced from $3,000 to $10,000. Buyers had the option to have their NFT produced physically, but, the value lies within the digital version which, within a few weeks of the launch, had begun appearing on the secondary market selling for double their initial prices (Vinopal, 2021). The three-shoe designs were called FEWO Rare, FEWO Epic and FEWO Legendary. FEWO Rare is black and has a black and white pattern on its base with red see-through patches on the toe, heel and side and a yellow patch going over the laces, which contrasted against the blue tongue. The Epic style is a rainbow of colours and patterns, including clouds and flames around the toe. Similarly, the Legendary is a host of colours and patterns over the shoe. The designs are what you would expect from Fewocious who, often finds his inspiration from his childhood, however, nothing about the shoe design means it would only be available in the metaverse. Collections like this are key entrance points to entice buyers, they give the option of having the article physically if a customer does not understand the hype around digital fashion after buying.
RTFKTs most recent project is CloneX. Launched on the 29th November 2021, the project was with artist Takashi Murakami. Together they created 20,000 metaverse avatars, each with a randomised assortment of pre-designed features and traits. The avatars can be used in RTFKTs dedicated Clone X website and future NFT based games, AR filters, Zoom meetings and metaverse platforms, with additional features and member-only experiences to be released in the future (Chow, 2021). Buyers would also have access to the NFTs 3D files; therefore, they can change attributes to better reflect their personality. The project also has a focus on inclusivity, including avatars with various disorders such as vitiligo and unique or impossible hair and eye colours. “For Gen Zers, the key point is not to define themselves through only one stereotype but rather for individuals to experiment with different ways of being themselves and to shape their identities over time” (Francis and Hoefel, 2018). The brand also made 25% of the avatars robots, with robotic, machine-like features (RTFKT, 2021), furthering users’ abilities to express themselves uniquely.
Chapter Three|: How do Gen Z use the metaverse
3.1 Gen Z socialising in the metaverse
Whilst the metaverse will be so much more than a gaming platform, right now, games like Fortnite and Roblox give us the best understanding of how we can expect Generation Z to socialise within the metaverse as it grows. This is because platforms like Fortnite offer many elements of the metaverse, from hosting Travis Scott’s concert in April 2020, from which he earned $20 million for a nine-minute set with over twelve million people attending (Ziwei, 2020), to building a whole sub-economy which allows players to build their own content, from fashion to dances, and the ability to produce new games and experiences, growing as Fortnite allow open-access to their engine, assets and aesthetic (Ball,2020). Gen Z now organises with friends to meet on the platform rather than go to each other’s houses to play and socialise. Around 81% of Generation Z have played a game in the last six months, spending an average of seven hours twenty minutes a week on a console (Newzoo, 2021). It is now where many consume news and learn about events, making it a key location to advertise on. The way the younger generation socialise on gaming platforms is not new, but an evolution of how generations have previously talked on the phone or interacted with instant messaging. As this new technology develops, the way we interact with one another in the digital world will become almost identical to how we interact in the physical world, especially when the persistent metaverse is developed. Events like the ones hosted on Fortnite are just the beginning and will only continue to happen more often with more avatars attending.
3.2 Gen Z spending within the metaverse
“Direct-to-avatar (D2A) refers to an emerging business model selling products directly to avatars” (Hackl, 2021): in the metaverse, there will be no need for supply chains, allowing brands to directly communicate with consumers, for gen Z transparency and congruency of a brand has an implication on whether they spend their money there or not; D2A means, especially if linked to the blockchain, all elements of their purchases will be traceable, leaving no room for error from brands and consumers have a clear conscience that their purchase is ethical and fits their morals. We can already see that young consumers are willing to spend money on digital items platforms: “Roblox has 36.2 million users a day, 54% of them under the age of 13 … 455,000 of those young gamers purchased Robux … totalling nearly $700 million in the first nine months of 2020” (Hackl, 2021). By the end of 2021, spending within the gaming economy on clothes and upgrades was expected to be $129 billion (Ong, 2021). A McKinsey study found that Generation Z view “consumption as access rather than possession” (Francis and Hoefel, 2018), highlighting that spending this much on virtual assets is not seen as a waste by Gen Z. Knowing this means brands can explore new developments such as augmented reality and metaverse experiences, to reinvent their product strategies, moving away from often wasteful tangible products which no longer fit with Gen Zers ethics. Brands which show they are making more effort to be transparent and sustainable through digital products like this are more likely to attract the gen z consumer, of which 62% prefer to buy from sustainable brands (First insight, 2020).
3.3 Marketing within the metaverse
Marketing within the metaverse is a growing area as brands and agencies put together new strategies to attract Generation Z consumers. Snapchat is currently proving to be a key player in developing and testing plans as we enter this metaverse era, due to it reaching 90% of those aged between 13 and 24, according to Snapchat CEO Evan Spiegel (Rahal, 2020). It has also proved itself as a fantastic platform for brands to launch AR filters and digital fashion, working with Tommy Hilfiger, RTFKT and more. Snapchat offers video marketing that is different from its counterparts at Instagram or Facebook due to its interactive features allowing brands to be more creative and authentic, and with their future AR glasses, Spectacles, consumers will be able to interact in another way other than through their phone. Experiences like this are just one element of marketing within the metaverse. Aglet, a recent initiative founded by Ryan Mullins, would have users hunt the physical world to collect virtual limited-edition trainers, unfortunately, due to the pandemic, the launch has been delayed. Within the app, users would also collect points based on their virtual trainer collection, which would give discounts to other brands, but brands would also be able to set challenges for players to try to gain additional prizes (Shieber, 2020). To help customers build relationships with their digital clothing, users would find that their trainers would wear over time the more your avatar wore them. Apps like this help consumers build relationships and stories with brands because it emulates real-life interactions we have with clothing already. This storytelling element currently seems to be missing from most NFT drops where you can use a laptop to buy and never experience the wear and tear of your digital items.
Conclusion|: The future of the metaverse and luxury Streetwear
What is the future of the metaverse?
A future in the metaverse is a promising development for many within the creative industry, it proposes open sources from key brands, and a persistent online world of consumers who value digital items just as much as physical ones and consumers who value individuality and freedom of creativity, allowing designers to be free of the restraints of the physical world. However, this could lead to a very over-saturated environment with consumers having a near infinite amount of choice from all around the world. It is essential for brands to either be one of the first in the metaverse or be able to build strong consumer connections if they wish to stay relevant. They also need to be building relationships and collaborating with other companies now to centre themselves as part of that company’s long-term roadmap into the metaverse.
In terms of technological advancements, we can expect to see improvements with VR headsets and glasses, along with other elements that would allow for a multisensory experience when online, whether you are food shopping, working or visiting friends. We can also expect developments in technologies allowing us to interact with the metaverse without a headset, such as projectors that can change the interior of your room depending on if you are hosting a party or having a quiet night-in.
Implications on luxury streetwear brands
For some luxury brands, stepping away from traditional skills and methods will be a drastic change, with some being very reluctant, however, whether brands begin to make digital clothing or not, they will need to embrace some elements and technology that the metaverse is providing. Whether that is advertising within it or using 3D production for clothing samples to reduce waste, mainly because this is where their future consumer is and what they want. Most streetwear brands so far seem to be excited by the idea of the metaverse, quickly reacting by building teams and collaborating with 3D designers. The metaverse provides companies with a host of new designers, so expect that brands may look to employ more freelance designers or buy designs from young creators who have used online open-source studios on platforms like Fortnite or The Fabricant. One issue luxury brands may face is competition from independent designers who can offer just as creative pieces for less cost. Usually, consumers would expect to pay more for a designer piece due to the craftsmanship of the tangible product, with digital, this is not a factor… yet. The development of multisensory internet will be a result of the metaverse in the future, but until then, streetwear brands need to find other ways to connect with their consumer's, building relationships through storytelling and creating a community of people who will pay extra to support the brand name. They also need to provide their customers with exactly what they want. For Generation Z, it is all about individuality, so hyper-customisation will be something they are keen to see. It is important to address how the metaverse will affect other elements, not just production. For retail, brands need to offer that high-end experience consumers can get physically now, online. As discussed earlier, Generation Z values access just as much as product, so allowing them entrance to other elements such as being part of the making process or exclusive entry to a customer event where they can socialise with other buyers is great. Luxury brands need to continue to increase their phygital space, proving to Generation Z, that they are the best option for them to increase their digital experience within the metaverse.
