Luxury brands are no longer able to rely solely on their traditional marketing strategies in the Web3 universe. The recent virtual fashion weeks in Decentraland made it clear that these strategies have limitations, such as low-quality graphics and connection issues. For example, a virtual dress by Jason Wu and Dress X did not receive any bids, showing that buyers are reluctant to pay high prices for solo events.
In order to succeed in the Web3, luxury brands must rethink the customer experience and reinvent their distribution channels. The key is to spark customer interest through unique and avant-garde strategies, rather than relying solely on fashion shows or replicated fashion items. Taking risks and being innovative are essential elements of Web3 strategies, and they align with the expectations of Gen Z consumers.
Streetwear brands are leading the way in developing these strategies in the digital fashion game. Pioneer brands like HapeBeast, Cult & Rain, Nike, and KITH are embracing the Web3 ecosystem and staying one step ahead. They are creating digital playgrounds, offering luxury experiences, and collaborating with innovative projects to attract public attention.
A central pillar of Web3 strategies is the community. Streetwear and NFTs thrive on their ability to create a sense of belonging and exclusivity within their communities. Luxury brands should learn from this and find ways to engage with their own communities in the digital space. Gucci Vault and Tiffany & Co. have already recognized the importance of engaging with the Web3 generation of luxury consumers.
Building a strong customer experience in the Web3 requires luxury brands to embrace the digital transformation and develop diverse ecosystems. They need to offer their fans more than just products, but an experience that empowers the community. In the metaverse, luxury brands should focus on providing post-purchase experiences, future benefits, and VIP access to create value for their collectors.
The NFT market is expected to surpass $80 billion by 2025, offering promising prospects for the luxury industry. Luxury fashion houses must draw inspiration from the best practices in the Web3 and find ways to engage with their community in the long term. This requires opening up to innovative strategies, prioritizing the community over profit, and being ready to adapt to the digital landscape.
Useful Links:
– Vogue Business: How luxury streetwear clubs are building on Web 3.0
– Business of Fashion: Behind the Rise of Web3 Luxury
