Balenciaga, a fashion brand owned by Kering, is taking a cue from OTB, an Italian fashion group, and announcing its plans to launch a department dedicated to the metaverse. This move reflects Balenciaga’s recognition of the marketing and commercial opportunities presented by the virtual world. The brand has already made its presence felt in the metaverse through various gaming experiences and is now looking to establish a separate unit focused on this business. Although still in its development phase, this new department will allow Balenciaga to further strengthen its presence in the ever-evolving 3D world and connect more effectively with consumers.
The fashion industry is increasingly acknowledging the potential of the gaming market, which is estimated to be worth billions of dollars. Balenciaga’s creative director, Demna Gvasalia, created waves in 2020 when he unveiled the Fall/Winter 2021-22 collection through an online video game titled “Afterworld: The Age of Tomorrow.” This innovative presentation garnered attention from both the press and the public, resulting in a noteworthy 41% increase in searches for Balenciaga pieces on Lyst within just two days of its debut.
Building on the success of this venture, Balenciaga recently collaborated with the popular online game Fortnite to create virtual looks. Once again, this partnership had a significant impact on user engagement, driving searches for Balenciaga up by 49% on Lyst. The fashion industry is now realizing the enormous potential of the digital sector, which extends beyond gaming. Bain & Company, in a report on the luxury goods market, emphasized the role of digital channels in sales, strategic communication, and the exploration of new opportunities like NFTs (non-fungible tokens) and advancements linked to the metaverse.
Experts from Morgan Stanley predict a substantial surge in demand for the 3D virtual world, estimating that it could generate an additional $50 billion in revenue for the fashion sector by 2030. In light of these projections, it is evident that Balenciaga is not the only brand venturing into the metaverse. The industry as a whole is recognizing the potential and is likely to seize the opportunities presented by this new realm.
Balenciaga’s decision to establish a dedicated department for the metaverse demonstrates its commitment to remaining at the forefront of innovation. As the virtual world continues to evolve, fashion brands must adapt and embrace new ways of engaging with consumers. By venturing into the metaverse, Balenciaga is positioning itself as a pioneer in this emerging space. It will be interesting to observe how other brands follow suit and navigate the future of fashion, which lies not only on the runways but also in the digital landscapes of the metaverse.
For further reading on the growing influence of the metaverse in the fashion industry, the following links are provided:
– The Era of the Virtual Clothing Brand is Here – Business of Fashion
– The Metaverse: Fashion Goes Digital and Virtual – Vogue Business
