Luxury fashion brands at the gates of the Web 3.0: An analysis of early experimentations with NFTs and the metaverse

Abstract

ABSTRACT Luxury fashion brands have been pioneers in experimenting with NFTs and the metaverse. Though, the analysis of the success of these forerunning initiatives to date still pertains to anecdotal literature. Drawing upon a mixed-method convergent multiple-case-study design involving four cases, this study investigates how pivotal marketplace actors – namely, journalists and consumers – perceived these early experimentations and the extent to which these new technologies can support luxury fashion brands in further conveying their traditional luxury values. Findings suggest that luxury fashion brands should exploit these technologies to reinforce the perception of scarcity, accelerate the “artification” process, and innovatively convey their ancestral heritage. Nevertheless, when leveraging Web 3.0 technologies, luxury fashion brands must be particularly cautious about the risks of conveying their distinctive aesthetics ineffectively and offering experiences that do not align with the highly experiential nature of luxury.