The future will be digitised As digital natives, Millennials and Gen Z tend to expect intuitive and modern online experiences from the brands that they follow or choose to buy from. One example of this is the involvement of brands with NFTs – blockchain-based digital tokens, which can be offered as exclusive rewards or collectables. For instance, 23% of Millennials now collect NFTs. NFTs and luxury brands go hand-in-hand, and offering exclusive NFT rewards is something that leading brands are already starting to do. For example, Louis Vuitton launched an adventure game in the metaverse paying homage to its founder, where players could win one of 30 exclusive NFTs. By offering NFTs for users to purchase or win, such as NFTs of famous designs from a fashion brand, luxury companies can not only create new revenue streams for themselves but also engage their younger audiences and foster more loyalty and engagement amongst their customer base. The metaverse itself is an important medium for luxury brands to explore and which they are now exploring, as in the case of Louis Vuitton’s game. According to a survey from Statistica, 74% of gamers in the metaverse were between the ages of 10-35, comprising current and future customers for luxury brands. A recent report from Klarna also revealed that more than six out of ten respondents from Gen Z and Millennials who have already heard of the metaverse say they are interested in purchasing luxury goods via this new channel. Luxury brands can harness this audience by offering exclusive experiences in the metaverse paired with NFTs and digital collectables. For instance, we saw something similar when Gucci launched its Gucci Garden in Roblox, drawing in a new audience. Customers could come to the Garden within the metaverse and also buy exclusive NFTs. Luxury brands could even go further by offering customers exclusive ‘wearable’ NFTs, which they could purchase and then have their avatar wear within popular games and the metaverse. These NFTs could even be customised, such as having the customer’s name written across the back. Pairing NFTs with the metaverse in this way not only lets luxury brands engage with younger generations in their spaces and generate more loyalty with them, but it also lets them provide new opportunities for existing customers and new customers ©Louis Vuitton
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