Metaverse, a new opportunity for fashion brands

We're pretty sure you've heard of Metaverse before. What you may not know is that it opens up new scenarios for companies in every sector. In particular, fashion brands can reap incredible benefits from this new expression of digitization.

What is Metaverse?

The term “Metaverse” appeared in the cyberpunk community back in 1992, and recent adoption of the term by Facebook has brought about its mainstream popularity.

We can consider it the evolution of the Internet, even though it does not replace the Internet. It is an improvement. Giving a precise definition is difficult, but we can think of it as a set of virtual worlds, connected to the real world.

Technically, the Metaverse is a decentralized platform based on blockchain technology that allows virtual worlds and digital assets to be stored in a public, decentralized ledger. The result is a shared virtual space where people can interact and do business without intermediaries.

How does the Metaverse work?

Metaverse is made up of three components:

• Digital Identity (Avatar)
  Every user on the Metaverse platform has a digital identity, which we call an "avatar." This avatar represents the user in the virtual world and can be fully customized.
   
• Digital Assets
  These are virtual objects that users can own, store, and trade on the Metaverse platform. Digital assets include things like land, buildings, art, and even digital currencies.
   
• The system
  The Metaverse is based on a technological system that allows it to interact with the real world. It uses data from external sources (such as weather forecasts, stock prices, and currency exchange rates) to verify the authenticity of Metaverse transactions.

Although it is accessible to anyone, it makes extensive use of video, virtual reality and augmented reality. For these reasons user need:

• a computer or smartphone
• a good Internet connection
• a 3D viewer

In addition, an account on one of the Metaverse platforms is essential.
The main ones are:

• Decentraland: created by Ethereum, users can create buildings and other virtual things;
• Sandbox; partner of Meta, the design of its avatars is reminiscent of Minecraft;
• Stageverse: Fairly new, debuted with a Muse concert.

What advantages does Metaverse bring to fashion brands?

According to a recent Gartner study, in 2026 25% of the global population will spend at least one hour a day in the Metaverse "for work, shopping, education, social interactions and entertainment”. 

Now that you know how Metaverse works, let's take a look at some of the advantages it can bring to fashion brands.

1. More creativity and better design
   Well, the virtual world is not subject to the rules of real-world physics and this allows designers to create garments (for avatars) with greater freedom. But using design software for crazy digital creations can help solve practical, real-world problems related to fabrics and manufacturing.
    
2. A new way to reach customers
   By creating a virtual store on the Metaverse, brands can sell their products to anyone in the world, 24 hours a day, 365 days a year.
    
3. Lower costs
   Setting up a virtual store on the Metaverse is much cheaper than setting up a physical store. Brands can also save on inventory costs, as they only need to create digital versions of their products.
    
4. Greater customer engagement
   In the virtual world, customers can try on clothes, mix and match different outfits, and even change their avatar's appearance to match the latest trends. This level of engagement is not possible with traditional online shopping.
    
5. A new revenue stream
   The Metaverse provides fashion brands with a new revenue stream by selling digital assets for the avatars (such as clothes, shoes, and accessories).
    
6.  Fight counterfeiting
   Fashion brands can create digital copies of their physical garments which can then be authenticated as NFT, Non-Fungible Token, which is a special type of token that certificates the authenticity of an asset.
    
7. Less social and environmental impact
   The environmental impact of the textile and fashion industry is heavy.
   Still in 2020, McKinsey had predicted that continuing in this way, by 2030 fashion would be responsible for 2.7 billion tons of carbon emissions per year. The adoption of eco-friendly production methods and circular economy practices are improving the situation and the Metaverse can contribute. For example, allowing people to shop and virtually try on hyper realistic digital renders of garments can help reduce the need for physical samples and reduce unsold products.

Fashion in the Metaverse is already a reality

Big fashion brands like Gucci, Louis Vuitton, and Nike are already in the Metaverse, each in its own way. For example, did you know that Decentraland has its own Fashion District? And that in March 2022 it hosted the first Metaverse Fashion Week? The participating brands presented NFTs, special capsule collections, and organized catwalks with avatars. According to Vogue Business 108,000 unique attendees joined the event throughout MVFW.

What can your company do today?

According to a recent Gartner study,in 2026 25% of the global population will spend at least one hour a day in the Metaverse "for work, shopping, education, social interactions and entertainment".

To take advantage of this opportunity, companies can count on digitization and new technologies. 

In particular, connected products have several benefits, including the ability to link a physical product and its use in the real world to content and experiences in the digital world. They can be a first step towards the virtual world.
 

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