Fashion brands rush into virtual boutiques and metaverse as e-commerce booms

The pandemic accelerated fashion's shift to e-commerce, then gaming, and now the metaverse. Morgan Stanley estimates the metaverse could represent 10% of the luxury goods market by 2030, a €50 billion opportunity, with ready-to-wear, leather goods, and sneakers best positioned. Brands like Balenciaga, Gucci, Burberry, Dior, Louis Vuitton, Moncler, and Vans have entered gaming. Virtual boutiques go beyond replicating physical stores, combining immersive experiences with data profiling. Dior Beauty's virtual shop in Harrods features flowers sprouting from a starry sky; Ferragamo's "House of Gifts" lets users explore a luxury Italian villa. In 2021, Tommy Hilfiger, Ralph Lauren, Burberry, and Coach also opened virtual stores. Burberry's Olympia line launch included a virtual Greek temple with an AR statue of Elpis that users could place in their surroundings. Critics note aesthetic results lag behind technological effort, especially compared to crypto art.