Fashion has the advantage, but there are learnings for all sectors

Fashion has
the advantage,
but there are learnings for all sectors

The world of fashion is undergoing a significant transformation, thanks to the Metaverse. The blurred lines between the physical and digital fashion worlds have opened new possibilities when it comes to cutting edge brand and customer experiences.

There are multiple ways the industry is tapping into this:

Providing entirely digital fashion options for virtual personas like avatars that enable individuals to express themselves and transcend physical limitations.

Leveraging 3D fashion tools such as CLO3D for a more sustainable approach to clothing design in pre-production, facilitating experimentation with various colours, styles, and cuts while reducing resource consumption.

Integrating digital technology into physical customer journeys, including features like AR try-ons and avatar try-ons, allowing shoppers to see how products would look on them without trying on the physical item - a feature that aims to help minimise returns.

Exploring novel avenues to engage shoppers through gaming, virtual showrooms, stores, and brand experiences. This setup also allows shoppers to purchase physical clothing directly from within the virtual experience.

In fact, of those who are interested in using the Metaverse for buying products, 46% said they would purchase physical clothes, and a staggering 17% said they would purchase digital fashion for their avatar, unlocking new opportunities for fashion brands to engage shoppers and grow incremental revenue. Nevertheless, it is crucial to acknowledge that physical clothing remains vital even with the rise of digital fashion. Consumers still value tangible items, highlighting the ongoing need for brands to bridge the gap between the physical and virtual worlds. Numerous brands have demonstrated this connection by providing digital twins – virtual replicas of physical products that enable consumers to possess a copy of a product both for their physical and digital identity.

46%

said they would purchase physical clothes

17%

said they would purchase digital fashion for their avatar

Bridging the gap: How Nike uses gaming to win with Gen Z

As one of the top ten brands among Gen Z, Nike has developed a multifaceted strategy for navigating the Metaverse and the future of the internet (Web3). It includes the creation of immersive virtual environments designed to cultivate community engagement and novel forms of product ownership within gaming.

Nike is pioneering the integration of shoes into gaming culture

Nike Football ^©

Nikeland in Roblox

Nike's Flagship Metaverse Space on Roblox

Fortnite ^©

Airphoria in Fortnite

Immersive gaming experience - multiyear partnership between Nike and Fortnite

RTFKT ^©

RTFKT Acquisition

In 2021, Nike acquired RTFKT, a leading creator of virtual sneakers and NFTs

Nike ^©

Nike's SWOOSH platform

Web3 led platform that allows for democratisation of the creative process giving anyone a voice to shape the future of Nike

13%

of survey respondents said they preferred the Metaverse over traditional platforms like online and gaming consoles

When it comes to gaming and the Metaverse, 13% of survey respondents said they preferred the Metaverse over traditional platforms like online and gaming consoles, this jumps to 19% for Gen Z respondents.

Gen Alphas, the youngest generation currently the oldest of which is 13 years, are immersed in the digital worlds and embrace the Metaverse for both gaming and exploration. This group is the most likely to blur their physical and virtual identities, which means interactions with their favourite brands in the Metaverse is an important channel for building brand loyalty.

Nike’s virtual strategy is paying off: their NFT sales in 2022 amounted to $185 million, underscoring the significance of investing time in understanding virtual worlds and defining strategic approaches. This success showcases the substantial rewards awaiting brands that engage with these platforms effectively, ultimately strengthening their relationships with consumers.

Key Takeout for Brands:

The rise of the Metaverse presents a paradigm shift in how consumers engage in the digital realm. Some consumers are even favouring the Metaverse over traditional channels, posing opportunities for brands across sectors to add a new layer to their strategy, by offering 3D, immersive, interactive content, and more.
To reach Gen Z and Gen Alpha shoppers, brands should invest time and resources in understanding the Metaverse and where and how these audiences are engaging to inform the right strategic approaches.

It’s essential to integrate both physical and digital products into Metaverse experiences.

Key Takeout for Brands:

The rise of the Metaverse presents a paradigm shift in how consumers engage in the digital realm. Some consumers are even favouring the Metaverse over traditional channels, posing opportunities for brands across sectors to add a new layer to their strategy, by offering 3D, immersive, interactive content, and more.

To reach Gen Z and Gen Alpha shoppers, brands should invest time and resources in understanding the Metaverse and where and how these audiences are engaging to inform the right strategic approaches.