The continuously changing digital realm has made it possible for every business to find new ways of staying relevant globally, and fashion houses are no different. Digital transformation has gained steady momentum in the fashion industry, whose demand is expected to reach $295.7 billion by 2025.
But the bigger question is – how should these elite fashion brands tackle the challenges of digitization and leverage from it? Well, the answer to all their problems is Metaverse. This virtual reality marketplace is the next face of retail, and amalgamating both will redefine online shopping for every individual.
Metaverse has the power to tackle the most challenging drawback of online shopping and retail, and that is allowing the users to feel, try and touch clothes before buying them online. Well, what better place than this 3D marketplace backed by AR and VR to try something new yet have an extraordinary experience every time?
The world recently witnessed its first-ever metaverse fashion week hosted in Decentraland – the elitist 3D virtual world that has already taken the world by storm. Several exorbitant brands like Gucci, Roberto Cavalli, and Ralph Lauren are cashing in on Metaverse to promote their products and reach new global markets.
These brands are now selling digital fashion to users in the digital world and using NFTs as a certificate of ownership. It is one of the most viable ways to increase brand awareness and your return on investments. Now, we are sure these facts have made you interested in investing in a metaverse ecosystem for your retail business.
But before diving into the terminologies and nitty-gritty of Metaverse and retail, let us first look at various findings and facts related to Metaverse in fashion and the multiple possibilities major brands are exploring under this virtual ecosystem.
- According to PRNewswire,CTN News the market share of Metaverse in fashion is expected to witness an increase of $6.61 billion from 2021 to 2026, thereby registering a CAGR of 36.47%
- The market is further expected to witness a YoY growth rate of 30.5% by the end of 2022
- The primary factor driving this growth is the increasing number of big brands entering this market
- The growth is further supported by the increasing number of GenZs that spend more than 8 hours per day on their smartphones
- The significant metaverse investment by the fashion industry is subjected to the $176 billion digital gaming world
- As per Balenciaga’s clients, digital fashion will be changing the meaning of fashion shortly
- AR and AI have opened up new opportunities for people to leverage virtual fashion
- Non-Fungible Tokens (NFTs) are people’s most common currency to buy products in the digital world
Now that you understand how powerful brands are revolutionizing the digital domain and changing the face of fashion, one NFT at a time, it is the right time to invest in your metaverse platform for fashion business that can help you put your brand on the trajectory and compete with the highest fashion extravagant brands.
Choosing a dedicated metaverse app development company is a tricky task. You need an organization that can realize your vision and creates a metaverse platform for your fashion business per your custom requirements. Appinventiv, with its dedicated team, can help you put things into perspective while using the latest technologies and features to get maximum investment returns.
Still not convinced? Let us share some use cases that can offer insight into how influential brands monetize this lucrative Metaverse in the fashion retail market. In addition, we will also help you understand how you can enter the metaverse space with your retail business.
How Fashion Retail Businesses can Enter the Metaverse Realm: Understanding the Methods and Use Cases
The metaverse platform for fashion will be redefining how we interact, work and shop online. Since the decentralized ownership, Web3 will expand its reach in the coming years, and the use of NFTs and social gaming will support the brand’s digital evolution. Here are a few methods for fashion and retail businesses to enter the metaverse reality.
- Entering via event activations through video games
One of the most impactful methods for businesses to make a name in metaverse fashion is entering the ecosystem with the help of event activations in video games. Fashion brands can exhibit their latest collection to the world by creating digital events or fashion shows inside a video game world.
For instance, in 2021, Gucci, in partnership with Roblox, invited multiple visitors to take a unique trip to the virtual Gucci Gardens. This allowed the brand to redefine its marketing campaigns while making way for new technology to change the entire demographic of a fashion show. This was one instance of Metaverse and fashion collaborating to give the audience something unique yet fulfilling.
Balenciaga, the epitome of fashion royalty, also collaborated with Fortnite and created gaming avatars that users could buy for their virtual existences across the digital world. Other brands like Dolce & Gabbana, Etro, and Elie Saab also entered into a metaverse platform for fashion and created an existence for themselves in the world of Web3.
- Employ the use of NFTs
Building momentum in the Metaverse in the fashion industry is a tough nut to crack. Using NFTs can allow your fashion brand to offer digital versions of clothes to multiple users .
Being a fashion house, you can launch your collection with NFTs and offer exclusive opportunities to your target base. For instance, Dolce and Gabbana recently collaborated with UNXD and created the first-ever luxury collection sold to users with NFTs. The purchase of NFTs offered the user the collectible item in digital and physical avatars. In addition, those NFTs also provided them access to all the future shows of the brand that will take place in the virtual Metaverse.
- Explore cryptocurrency payment options
Diving into the world of the Metaverse is not an easy task. Thus, it is recommended to try all the pathways and give your business that much-needed edge. For instance, you can accept cryptocurrency as a payment for your products. This will further help reassure the customers of your products’ authenticity while, at the same time, it can help you prevent the counterfeiting of products.
Various brands like Prada, Louis Vuitton, Hublot, Gucci, Balenciaga, and Cartier have started accepting cryptocurrency as an alternate payment method. They have attracted millions of customers that prefer to spend their digital money over luxury goods.
How to Develop a Metaverse Platform for Fashion Business?
There are several steps to consider before developing a metaverse platform for the fashion business. For instance, choosing the right technologies and features to be integrated into your platform should be your top priority.
- Analyze your business idea for diving into Metaverse in fashion retail
- Conduct thorough market research
- Choose a dedicated metaverse development company
- Complete the UI/UX design process
- Start with the platform’s coding process
- Quality assurance
- Deploy the app in the app store
Benefits of Metaverse in the Fashion Retail Ecosystem
Do you know brands like Louis Vuitton, Balenciaga, Gucci, Ralph Lauren, etc., have been able to witness an increase in their earnings by more than $50 million ever since they invested in the world of Metaverse and offer services in virtual reality? Here are a few benefits you can witness if you wish to invest in Metaverse.
- Eliminates the overstock issue
- Increased return on investment
- Constant monetization
- Reduced carbon footprint
Now that you have a clear idea of how beneficial it is to create a Metaverse platform for the fashion business, it is time to understand the costs of driving your fashion business in the Metaverse.
Cost to develop metaverse platform for fashion business
The cost to make a metaverse platform for fashion businesses varies between $40,000 to $200,000, depending on several factors. For instance, the location of the app development organization will directly impact your overall budget, considering the different hourly rates of development in different regions. In addition to the metaverse platform features for fashion business, various other factors affect the cost of creating a metaverse platform for fashion companies:
Now that you have understood the cost of creating the metaverse fashion business, let us now help you determine how Appinventiv can assist you in becoming a renowned fashion brand in the metaverse universe.
Read more about metaverse in fashion retail
