Metaverse and NFTs: from Gucci to Starbucks, luxury and consumer brands rush into the virtual world for their pots of gold

The annual revenue of merchandise sold in the metaverse could soar to US$1 trillion, according to JPMorgan’s estimates

Some of the biggest luxury brands with deep pockets are already actively staking territories in the metaverse, and striking gold with their forays

Reading Time:6 minutes

Published: 10:00am, 12 Mar 2022

Last summer, Ralph Lauren launched its inaugural collection of digital apparels on Zepeto, where customers can select from 50 items to dress their avatars in the brand’s signature prep-school look.

There were colourblock hoodies, Polo T-shirts, teddy bear sweatshirts and even two unique skateboards that exist only in the digital realm. Within weeks, more than 100,000 pieces sold for between US$0.57 and US$2.86 each to customers who were eager to embrace and explore the frontiers of virtual fashion.

Welcome to the metaverse, a virtual world that’s hailed as the next generation of the web, where virtual reality, augmented reality intermesh with the physical world in a seamless experience for users. Previously the playground of computer gamers, the metaverse is seeing an influx of consumer brands such as Ralph Lauren, Starbucks and McDonald’s, who are looking for opportunities in a market where annual revenue could soar to US$1 trillion, according to JPMorgan’s estimates.

The metaverse “is really going to turn the fashion [industry] into a new, stronger [iteration] with interesting opportunities,” said Stefano Rosso, a board member of OTB Group, which owns the apparels brands Diesel and Maison Margiela. “Brands need to be ready for this. It’s important that we start experimenting now.”

Digital fashion featuring Ralph Lauren’s distinctive prep-school look from the Ralph Lauren X Zepeto collection. Photo: Ralph Lauren

Rosso is chief executive of Brave Virtual eXperience, a subsidiary of OTB Group created in November to lead the company’s charge into the metaverse. The company is rolling out around 40 projects by the end of 2022, with the first one ready around March.

“It’s more than [attracting] new consumers,” Rosso said. “We’re trying to increase the number of users, and [find] a new means of speaking to them. For us, it is a new way of communicating to our consumers.”