How should luxury giants such as GUCCI and LV deploy other brands in the Metaverse?

Since the word Metaverse was pushed to the climax by the Facebook rebranding event in 2021, many brands have announced their entry into the Metaverse.

Although “Xiang Momo” in the eyes of this brand is still a concept that has not yet been fully implemented, everyone from technology giants to fashion brands, and even the catering industry seems to see the huge business opportunities contained in it.

According to Bloomberg Intelligence analysis, by 2024, the market size of the Metaverse will reach 800 billion US dollars; McKinsey reports that by 2030, the global Metaverse market is expected to grow to 5 trillion US dollars; PricewaterhouseCoopers also predicts that, The Metaverse market size will reach $1.5 trillion by 2030 .

I have to admit that the Metaverse is changing our world, and it is not groundless for more and more brands to enter the Metaverse.

Under the influence of the epidemic, the problem of brand homogeneity has become more and more prominent, but the arrival of the Metaverse has provided a new opportunity for these struggling brands.

Therefore, major consumer brands have begun to embrace the Metaverse. For example, Nike has previously submitted a large number of trademark applications related to the Metaverse, and also released a virtual world “NIKELAND” modeled after Nike’s headquarters on Roblox; and catering brands are not willing to Showing weakness, Nayuki’s Tea launched a virtual brand ambassador “NAYUKI” and launched 300 NFTs around the IP online.

In addition to the above-mentioned sports and catering brands, the most active category in the Metaverse is luxury.

According to a report by Morgan Stanley, by 2030, the market size of luxury brands in the Metaverse may reach as high as 56 billion US dollars . So how do luxury brands meet the Metaverse, and can it become a new profit growth point for luxury goods?

How do luxury goods currently play the Metaverse?

As an emerging field, Metaverse not only brings new experiences to consumers, but also provides opportunities for brands to innovate in content.

There is no doubt that through the Metaverse, they can reshape their brand advantages, and short-term traffic can only get temporary attention, and a more comprehensive Metaverse strategy is what the brand cares most about.

Gucci

Gucci can be said to be one of the first brands to enter the virtual world to explore. As early as three years ago, it has started to build an exclusive GOOD GAME ecosystem, and simultaneously builds a brand framework in the Metaverse in multiple fields .

In 2019, Gucci launched the “Gucci Arcade” retro arcade section on the official app, and successively launched 6 games around its brand’s retro style; in 2020, Gucci and the popular tennis mobile game: Tennis Clash After reaching a cooperation, they implanted their own new fashion in the game scene, and players can replace the characters in the game with full-body Gucci items.

In 2020, Gucci and Snapchat released two new filters, users can try on Gucci sneakers online through the AR (augmented reality) technology of the filter, and click the “Buy Now” button to complete an instant purchase.

In addition, the Gucci APP has launched a new Sneaker Garage function, users can create their own digital sports shoes based on the existing shoe models by using the toolset.

With these technologies and tools, Gucci provides consumers with a different shopping experience, and also brings closer the interaction between brands and consumers.

In February of this year, Gucci collaborated with fashion brand Superplastic to launch a digital collection of the collectible SuperGucci series .

How should luxury giants such as GUCCI and LV deploy other brands in the Metaverse?

Then Gucci announced the purchase of the virtual land of The Sandbox, officially joining the ranks of companies such as Adidas and Warner Music to build the Metaverse world.

Gucci Town is its second virtual space on Roblox, and unlike Gucci Garden, Gucci Town will exist permanently on the platform.

It can be seen that Gucci has accumulated a lot of experience in the exploration of the virtual world. The unique virtual experience combined with its own brand influence has attracted countless fashion followers, and Gucci will continue to strengthen its position in the Metaverse.

Balenciaga

The well-known brand Balenciaga, which belongs to the same group as Gucci, is also a pioneer in the cooperation between the fashion world and the Metaverse.

In September 2021, Balenciaga collaborated with Fortnite to design several virtual costumes and game props for the four popular characters in the game.

In addition , the French luxury brand Balenciaga also opened a virtual store in the “StrangeTimes” creative center in the game to simultaneously sell physical products of the same style as the game characters, effectively creating momentum for offline sales.

From a marketing perspective, Balenciaga has figured out how to play the digital economy. Wearing the same clothing as the avatar in the game can significantly enhance the interaction between consumers and the brand, thereby further promoting the integration of the real and virtual worlds.

However, the original Metaverse layout of Balenciaga can be traced back much earlier. In 2020, Balenciaga launched Afterworld: The Age of Tomorrow, a game designed to showcase merchandise from the fall 2021 collection .

In the game, all characters can choose the brand series of fashion as their own image, which coincides with the concept of “skin” of avatars in traditional games. From another point of view, having a virtual “skin” that you like is a necessary step in order to penetrate deeply into the Metaverse.

Because of this, Afterworld has received a lot of attention from the media and the public, and the virtual game has also been described as ushering in a fashionable new era of complex virtual worlds and immersive experiences.

Scale Louis Vuitton

Louis Vuitton, a brand under LVMH, is in no way inferior to its “enemy” Gucci in its enthusiasm for entering the Metaverse industry. It has joined forces with group executives and a number of artists, creative directors and other experts to create LV’s AR Metaverse.

August 4, 2021, is the 200th anniversary of the birth of the founder of the LV brand with the same name. To this end, LV has launched the “Louis 200” theme celebration plan, which includes digital games, artworks, documentaries, etc.

Among them, LV has launched a Metaverse story mobile game “Louis the Game”. This mobile game is based on the early entrepreneurial experience of the founder Louis Vuitton. Users can immersely understand the LV brand through the game.

In the game “Louis the Game”, LV invested 30 NFTs with a value ranging from 2w-2000w, of which 10 were joint works by the famous artist Beeple.

After entering the game, players can use different combinations of LV letters and color combinations to customize the character characteristics to play the protagonist Vivienne, by playing six different worlds, and picking up 200 candles in the game to commemorate the founder’s birthday.

Every time a candle is picked up, a LV postcard will be lit, and a small story about LV will be recorded on the postcard. Players can learn about the history and culture of the brand by reading the story.

Moreover, these postcards will be divided into different grades. If a lucky person lights up a golden postcard, they are eligible to draw NFTs, but these 30 rare NFTs are “for collection only, not for sale” .

How should luxury giants such as GUCCI and LV deploy other brands in the Metaverse?

Burberry

Not only Gucci and LV, but also British luxury brand Burberry also went off the Metaverse track. Metaverse not only inherits the brand concept, but also breaks the limitations of the real world, showing the unique charm of the brand through novel 3D design.

On July 13, Burberry launched five virtual handbags in collaboration with the well-known designer @Builder_Boy of the world-renowned online platform Roblox , inspired by the brand’s classic Lola bag design. Meanwhile, community members on Roblox can also purchase and use these bags to dress up their avatars.

In fact, Burberry has been involved in the field of video games in 2019, launching “B Bounce” and “B Surf” games. Burberry, which is committed to keeping up with the trend, has not shown weakness in the tide of the Metaverse.

At the 2021 Los Angeles Electronic Entertainment Show, Burberry and Mythical Games will launch a limited-edition NFT work in Blankos: Block Party , which players can buy, upgrade and sell in-game.

Then, in June, Burberry once again partnered with Mythical Games’ Blankos: Block Party, introducing a new unicorn character called Minny B. The character was inspired by the brand’s animal kingdom, with Minny B’s designs featuring playful interpretations of Burberry’s signature, such as the orange plaid and monogram.

Games have become the preferred form of exploration for brands in the Metaverse, and the collision of luxury brands and games in the virtual world has brought more new customers to them, and has also inspired new interactions between brands and consumers. Way.

Jacob&Co

In addition to fashion and leather goods in the fashion industry, high-end watch brand Jacob & Co is also trying to find its place in the Metaverse.

In April 2021, Jacob&Co launched the first NFT watch “NFT SF24 Tourbillon”, which was auctioned on the ArtGrails platform and finally sold for $100,000 . The watch has a flop-type display system that can display different kinds of Crypto, such as BTC and ETH, within 10 seconds.

This year, Jacob&Co launched the second attempt of the Metaverse, taking the cosmic planets as the entry point, conceived the scene of the collision of planets in the wormhole, and launched the rare “Astronomia Metaverso” series of watches.

This series is based on the planets of the solar system, and has designed rare physical or digital NFTs, of which the five planets closest to the sun (Mercury, Venus, Earth, Mars, Jupiter) are physical NFT watches, and Saturn, which is farther from the sun, Uranus and Neptune are split into multiple NFTs, and only digital versions are available.

When it comes to the future of digital and Crypto, Jacob&Co CEO Benjamin Arabov said: “For Jacob&Co, we decided to take the lead in this transformation because we are sure that NFT products will have a place in watches and luxury goods in the future.”

Judging from the above examples, if luxury goods enter the Metaverse in the form of NFT features to open up new perspectives for people or communities who are dissatisfied with inherent labels, then building a luxury Metaverse social platform is the most important way to enhance user stickiness. The direct way and direction, and the virtual experience of the Metaverse realized through digital technology is a powerful attempt by major luxury brands .

How should luxury giants such as GUCCI and LV deploy other brands in the Metaverse?

Why do luxury goods take a fancy to the Metaverse?

Metaverse is dominated by young users, and luxury goods hope to capture young users

As the most popular digital economy concept nowadays, the Metaverse is also closely related to VR/AR, virtual world, games, etc. These elements are very friendly to young people who are very familiar with digital products and various software and games.

Take the well-known Metaverse applications Roblox and Rec Room as examples. Both of them support players to build their own virtual world/space. They already have more than tens of millions of users, and more than half of them are young people.

On the other hand, young people are also the main consumers of luxury goods . According to Bain & Company’s “The Future of Luxury” report released in 2021, Gen Y and Z will contribute 180% of the market growth by 2025, accounting for two-thirds of the total market. Young people are more avant-garde in terms of consumption concepts, they are willing to try new things, they are more inclined to please themselves, and they value self-expression more .

How should luxury giants such as GUCCI and LV deploy other brands in the Metaverse?

When the user groups of the Metaverse and luxury overlap, it is natural that luxury brands are willing to try in the direction of the Metaverse.

When a luxury brand that young people like is promoted in the form of a Metaverse that young people like and are very avant-garde, young people will get double the joy of “Double Chef Ecstasy”, and will usher in the effect of 1+1>2 .

The Metaverse itself becomes a digital marketing trend

Thanks to the popularity of smartphones and the advancement of communication networks, there is now a vibrant mobile Internet, and short videos have emerged as the times require, which in turn has spawned marketing methods such as live e-commerce and short video marketing based on short video platforms. .

The development of the Metaverse will also bring a new experience, which also means that there will be more innovative marketing methods to expand .

Brand owners can customize a unique virtual space according to their own needs, and present the brand to users in a more imaginative way, such as building a virtual themed store and carrying out a series of online marketing activities around the store. It has become a mainstream case of cooperation between Metaverse projects with mature user groups and brands.

In addition, the Metaverse brings a more immersive experience . Users can manipulate virtual characters to browse and interact in the virtual world, which also increases the fun of the interaction between brands and users.

Brands can design some novel interactive marketing activities in the virtual world in a more gamified way, and combine them with offline entities to promote the revenue of offline products.

This method breaks the limitation of time and space, and can carry out large-scale marketing activities in a more cost-effective and environmentally friendly way, which is also a great boon for brands.

At the same time, blockchain technology also plays a very important role in the Metaverse. It can ensure that the digital assets based on blockchain technology launched by the brand are confirmed. belong to the company.

At the same time, digital assets can be easily verified on the Internet as to whether they are genuine, which is also more conducive to display. This allows the digital assets launched by the brand to have both real value and the attributes of social currency, which is very suitable for many users’ needs for value preservation and self-expression .

In addition, due to the impact of the epidemic, online marketing has gradually become popular. As an online technology that can combine virtual and real, Metaverse has become a digital marketing trend.

Traditional sales channels are declining, and new blood is urgently needed

Last week, the global luxury giant Burberry announced its first-quarter financial report. The data showed that its global sales increased by only 1% year-on-year, while its sales in mainland China fell by 35% year-on-year; while rival Gucci is also not optimistic, UBS Said that Gucci’s sales in mainland China accounted for a quarter of its sales in Shanghai, and the impact of the epidemic will directly lead to a decline in its sales. At the same time, because of the closure of Shanghai’s shipping warehouse, about 40% of Gucci’s online sales in mainland China were forced to Stagnation, these factors may directly affect Gucci’s second-quarter earnings.

According to Euromonitor, a British consultancy, China’s overall fashion market (including non-luxury and luxury goods) in 2021 is 12.6% higher than the market value before the epidemic in 2019, but it is expected to grow by less than 1% this year.

Since the epidemic in 2020, luxury giants have had to actively adjust their sales strategies, from the previous mainly offline channels to a combination of online and offline models, and even some brands have begun to continuously focus on online channels .

According to the “2021 China Luxury Digitalization Report”, the online sales of luxury brands in the Chinese market will increase by 88% in 2020, reaching US$14.1 billion, and the market share will also reach 21%; by 2021, China’s luxury goods industry Online sales continued to accelerate on the basis of 2020, reaching US$24.7 billion, the growth rate was still as high as 75%, and the market share increased to 26%, which means that online sales have become one of the important sales channels for almost all luxury brands. one .

How should luxury giants such as GUCCI and LV deploy other brands in the Metaverse?

Therefore, the Metaverse, as an important source of channels for luxury goods to open up digital sales, chooses to constantly increase their weight in order to prevent themselves from falling behind a competitor.

Should other brands keep up?

When the luxury giants began to move towards the Metaverse with their heads held high, we can see that there are 3 types of players behind them. The first is some mass consumer brands that follow the giants to join the layout, including the well-known Wal-Mart, Mengniu, etc.; the other is a brand that completely resists the Metaverse, and is not worried about the so-called “next-generation Internet”; there is another It is a brand that has never heard of Metaverse at all. They are full of ambiguity about this concept, so they choose to be a “pretend to sleep”.

So in the face of such a situation, do brands really need to consider the Metaverse?

The answer may not be (at least for now) .

Just as people pursued “Internet +” in the early years, from chasing wildly, to gradually becoming rational, to being fearless, everything seems to be full of contradictions, but in fact it reflects the psychological state and mental process of different “players”, perhaps the Metaverse. It’s far from being “crazy”, and therefore doesn’t require all brands to lead by example.

Similarly, if we compare the development of the Internet, we will see the emergence of some new and cutting-edge brands in the Metaverse. Just like the e-commerce brands born in the e-commerce field in the early years of the Internet, the Metaverse will probably do the same. When the universe arrives, brands are starting to get anxious because—they are afraid of missing out .

How should luxury giants such as GUCCI and LV deploy other brands in the Metaverse?

Of course, at present, the cooperation between brand owners and Metaverse mainly revolves around digital collections (or NFTs), virtual people, and virtual spaces. This has also caused some brand owners to show obvious behaviors, but this does not hinder the brand . Businessmen join the Metaverse in high profile because they see some “business opportunities” .

As mentioned at the beginning, the Metaverse report released by the world-renowned consulting giant McKinsey shows that by 2030, the value of the Metaverse will reach 5 trillion US dollars, and in a survey of consumers and brands, more than 59% of consumers Excited about the migration of daily life to the Metaverse, perhaps the current brand joining the Metaverse is a “heat”, but just as our previous analysis, in this emerging track, falling behind is a beating.

Therefore, when other brand owners start to think about whether to join the heat wave of the Metaverse, they should actually ask the head of the brand a few questions:

  • Who is interested in the Metaverse?
  • Are they our target customers?
  • If not now, will it be in the future?
  • And, will the Metaverse become a bigger trend in the future?

After answering these questions, when many luxury giants have entered the Metaverse, other brands may know what to do.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/how-should-luxury-giants-such-as-gucci-and-lv-deploy-other-brands-in-the-metaverse/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2022-07-20 10:38
Next 2022-07-20 22:34

Related articles