Rametley said: “There is only one entity in the whole universe, only in its various forms.”
For the Metaverse, this statement is quite apt. As Zuckerberg, founder of Meta, said: “The Metaverse is a vision that spans many companies and even the entire technology industry. You can think of it as the successor to the mobile Internet.” It may promote the accelerated integration of the real economy and the digital economy, Bringing new business models and industrial relationships. The five areas of gaming, social interaction, competition, entertainment, and shopping are regarded as the experience level of the Metaverse, and they are also the most shallow applications.
Many traditional fields seem far from this concept, but their interest is high. At least, as representatives of the shopping field, domestic and foreign clothing brands are keen to explore this new business opportunity. The question is: how should they integrate into the Metaverse?
Entering the Metaverse, clothing brands cross the sea with the Eight Immortals
During the epidemic, live streaming, which has price advantages, consumer trust, and commodity display scene advantages, has brought a new marketing model to clothing brands.
Today, the immersive experience that Metaverse is showing to people has allowed brand owners to see new business opportunities. Whether it is a “hot spot” or a real strategic layout, brand giants have tried to integrate into the Metaverse in different ways.
In terms of foreign sports brands, Nike acquired RTFKT, the development company of virtual shoes and clothing NTF last year, and launched the Nikeland “Metaverse Flagship Store” on Roblox. Adidas launched the “Into the Metaverse” series of NFTs and received more than $20 million in revenue.
Among fashion brands, Burberry cooperated with the game company Mythical Games to launch a limited edition Blanko NFT virtual shark doll in the open-world game “Blankos Block Party”, priced at $300 a piece and limited to 750 pieces. The result was 30 seconds after the official release. Sold out inside. Balenciaga designs costumes for characters in the video game Fortnite, which players can pay for using the Fortnite currency “V-Bucks.”
Gucci released a two-week virtual version of Gucci Garden powered by Roblox as early as December 9, 2020, where users can customize their avatars and purchase exclusive digital items, and now also sells virtual fashion collections on Zepeto.
Looking at the domestic market, Heilan Home applied for the registration of trademarks such as “Heilan Metaverse” and “Hei Lan Home Metaverse”; Li Ning announced that Xuanwu’s virtual fashion idol “Xingtong” became its first trend star push official, and joined hands to break through The boundaries of virtual reality.
The behavior of these clothing brands shows that after entering the Internet era, the clothing industry is no longer a traditional industrial industry, and digital transformation is the development demand of every clothing brand. As Generation Z, who is more price-sensitive and likes to participate in new product trials, has gradually become the main consumer, brands must continue to expand their marketing boundaries. The enthusiasm for the Metaverse is the embodiment of this trend.
So, what are the differences in clothing brand behavior in the Metaverse era?
In the Metaverse, redefine the way of brand communication
Traditionally, companies will first create and position brands, then segment the market, produce products, and then market them through advertising. For example, the famous Schulitz beer marketing story, its marketing advertising is excellent, but it is still necessary to produce and hoard beer first, and then put a large number of advertisements so that people who drink can see it. This is a communication-style brand operation based on traditional media, and the efficiency is not high.
In the Internet era, brands have achieved breakthroughs in the relationship between products, businesses and customers.On the one hand, it is possible to cultivate customer groups first, then create products and conduct precise marketing to the community. For example, a two-dimensional brand can use a two-dimensional media matrix as the core, through content creation, to attract accurate traffic, operate fans, and directly target the community for efficient marketing.
On the other hand, the mobile Internet allows customers to experience products through live broadcasts, short videos and other channels, and even allows customers to evaluate and then determine the product. The Internet has transformed brand operations from communication to interaction, which is also an important reason why platforms such as Taobao Live, Douyin, Kuaishou, Weibo, Station B, Xiaohongshu, and Zhihu have been recognized by brand owners.
But the interaction is also different. Watching the anchor wear, listening to the anchor, wearing it yourself, or even designing, improving and wearing it yourself, the experience is obviously different. The core concept of the Metaverse is immersion and reality, combining digital things with reality. As Zuckerberg introduced in his Founder’s Letter: “In the Metaverse, you can do pretty much anything you can imagine — get together with friends and family, work, study, play, shop, create — And a whole new experience that doesn’t quite match how we think about computers or phones today.”
New experience = new business opportunities. The Hong Kong Stock Research Institute summarizes the common ways of entering the market for the clothing brands mentioned above:
First, with the help of NTF and games, provide digital products to digital avatars, including clothes, shoes, handbags, etc., to meet the personalized needs of customers. The brand will attract specific groups with its characteristics and positioning, and carry out personalized creative design, and Metaverse will endow the brand with new value. For example, Nike is running Nikeland, which allows sports fans to wear Nike clothing and experience various sports in the Metaverse. Of course, Nikeland is not perfect, it needs to allow users to have more interaction, socialization, and even participate in the design of shoes, which is the unique advantage of the Metaverse.
Louis Vuitton also launched the mobile game “Louis: The Game” with NFT collectibles in commemoration of the 200th anniversary of the birth of the brand founder. In the game, players can collect various fashion items of LV, decorate their own dolls, and have the opportunity to draw NFT digital artworks issued by Louis Vuitton.
In addition to the above common games and NTFs, the brand’s digital avatar participates in the community building of the Metaverse, launches virtual products and services, and becomes a part of the Metaverse community. It is also a predictable way to complete the brand’s virtual transformation. Such as virtual digital people. Among them is Miss Xingtong, Li Ning’s spokesperson, who is the virtual person in Xuanwu.
As mentioned earlier, in the Metaverse, its unique economic system will bring huge business opportunities to brands.Under the traditional economic system, all companies face increasing marginal costs and diminishing marginal returns, but in the Metaverse, brands do not have such problems. Because all raw materials in the Metaverse are codes that can be produced or stopped at any time, the production cost is close to zero.
Morgan Stanley said in an analysis report: Metaverse is expected to have a potential US consumer spending market space of up to 8.3 trillion US dollars. When the Metaverse arrives, the digital demands of the fashion and luxury industries will increase industry sales by $50 billion by 2030. That’s an imaginative number for a clothing brand.
At the same time, compared with their business opportunities, major brands are still relatively single in the exploration and application of the Metaverse. For clothing brands, what other predictable ways are there to deploy the Metaverse?
Get your pose and step into the Metaverse
Under the concept of the Metaverse, all walks of life are trying their best to embrace this concept. For clothing brands, what are their starting points for integrating into the Metaverse?
First of all, from the perspective of brand marketing, four approaches can be concluded: First, through cooperation with Metaverse Games, design game clothing. Including the aforementioned Louis Vuitton release “Louis: The Game”, Burberry’s cooperation with the game company Mythical Games, Balenciaga’s costume design for the characters in the video game Fortnite, etc. all count in this category. This is also the most mainstream Metaverse operation strategy of the brand at present.
Second, issue NTF, while selling digital products and real clothing. Nike’s acquisition of RTFKT, and Adidas’ launch of the “Into the Metaverse” series of NFTs are all trying this method.
Third, use virtual digital people as brand endorsements and sales to promote clothing, etc. For example: the signing of Li Ning and Xuan Wu’s virtual fashion idol “Xing Tong”, and Anta’s use of virtual host Xiao Ni to host the Innovation and Technology Conference. At present, the application of domestic clothing brands in the Metaverse is mainly concentrated in this way. Compared with a real person endorsement, the advantage of using a virtual digital person is that it will not “roll over” and the person setting is stable.
Fourth, cooperate with Metaverse social platforms and e-commerce platforms such as Meta to conduct Metaverse marketing. For example: Nike launched the Nikeland “Metaverse Flagship Store” on Roblox. Internet giants such as Tencent and Meta are all working on the Metaverse, and maybe a real “Metaverse E-commerce Platform” will be born in the future, but for now, this method is still in the preliminary stage of exploration.
In addition to the above marketing methods, we can also think about this problem from the perspective of brand design.With the development of Metaverse software and hardware, people can interact and live in a more mature Metaverse “community”. Based on the vision of free creation and social collaboration in the Metaverse, the Hong Kong Stock Research Institute believes that everyone can become a creative designer in the future. Clothing brands can provide consumers with brand value and allow consumers to participate in their own clothing design in the Metaverse.
Finally, from a technical point of view, it is based on the characteristics of the fusion of the virtual and the real in the Metaverse. Clothing brands can also make comprehensive use of Metaverse-related technologies to enable technology to empower entities. For example, Anta Children’s Winter Olympics new product “immersive press conference” this year shows that domestic clothing brands are trying this method.
The arrival of e-commerce and live streaming has found a new way for domestic apparel companies with long inventory turnover times and slow new product iterations under the traditional model. The current generation Z, who has gradually become the main consumer, has a high degree of acceptance of new technologies. With the maturity of Metaverse technology, it may bring business opportunities no less than the Internet era.
Domestic clothing brands, such as Li Ning, Anta, and Hailan Home, are actively embracing the Metaverse. In addition to these traditional clothing brands, trendy brands such as Bubble Mart can also rely on their creative highlights to design popular clothing in the virtual world and achieve new growth across industries. After all, Metaverse is a creative-driven economic system.
Of course, since the Metaverse is an emerging technology, its commercial application still has a lot of room for development, but clothing brands need to maintain a certain degree of caution and avoid false hype. Consider maintaining your own brand image. After all, the Metaverse still has a long way to go before it really hits the ground running.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/in-the-metaverse-era-how-do-clothing-brands-become-number-one-players/
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