Digital Trends in the Luxury Industry: What to Expect in 2022?
Now that we’ve stepped into the new year, one thing we all may agree on is that 2021 will indeed go down in history as one of the greatest booms in the luxury fashion industry. LuxFi believes that the past year has merely given us a sneak peek of the technological revolution that is about to take the luxury world to the next level.
If you missed all of the digital trends of 2021, then you should know that the luxury industry has already taken a few steps toward the metaverse with a couple of notable NFT launches from recognised fashion houses. According to DappRadar, in 2021 alone, NFT sales volume totalled $24.9 billion compared to only $94.9 million in the previous year.
It is now clear that having a well-thought-out strategy to maximise a company’s digital presence is crucial in the luxury goods sector. With the expansion of the metaverse, we can only imagine what 2022 has in store for the luxury industry! Let’s take a closer look at the digital trends that we need to keep an eye on this year.
Metaverse & Virtual Games
Much of the groundwork for luxury fashion’s foray into the metaverse was laid last year. Last September, Balenciaga partnered with Fortnite, which marked the game’s first ever collaboration with a luxury brand. The partnership arrived with a range of ‘skins’ available in the game’s virtual store that replicates physical Balenciaga retail stores.
Gucci also launched a virtual Gucci Garden space, an immersive multimedia experience in Florence, Italy, on Roblox. The Garden includes rooms themed around historic campaigns and a place to purchase limited-edition digital clothes from the brand. With these collaborations in mind, we can definitely expect greater things to come later in the year.
AR & Smart Glasses
It’s no surprise that big tech companies such as Apple, Facebook, Google and more have all invested in smart glasses or wearable AR. Last September, Ray-Ban, in partnership with Meta (known as Facebook), launched Ray-Ban Stories, smart glasses that allow you to take photos and videos, take phone calls and even listen to music. As luxury fashion brands are already buying in alongside the shift to the metaverse, more companies, be they tech, optical, or fashion, are expected to join the wearables market in 2022.
NFTs & Exclusivity
The adoption of NFTs increased significantly in 2021 and will continue to in 2022 as the luxury industry is taking hold of the technology. NFT has all the potential to change the value and function of digital assets and artworks. Imagine owning a fashion NFT and in 10 years it is worth ten times more than you paid for it?
On top of that, in preparation for the metaverse future, it is key for luxury brands to think outside the box and redefine what has historically characterised them as ‘luxury’. NFTs are an opportunity for brands to represent themselves in the virtual world. People crave unique and non-reproducible experiences to fulfil their desire for the exclusive, and NFTs, as the new system of value, may become the new ‘benchmark’ for that exclusivity.
So, as the world morphs into a metaverse, is the luxury industry ready to embrace the new reality, incorporate innovation and co-exist? We’ll see.
LuxFi is the world’s first asset-backed NFT marketplace for luxury assets, where people can buy, sell and invest in luxury assets using cryptocurrencies and traditional payments. We eliminate counterfeiting while minting an NFT on a multi-chain blockchain network, with a focus on luxury assets that hold value well and have a high resale value. Leveraging our big data intelligence system and unique algorithm for automated data collecting and data processing, the value of each NFT on our platform is backed by real-world data.
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