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The metaverse fashion industry connection | McKinsey
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class="FullHero_mck-c-full-hero__first-fold-content__F5jdd"><div class="mdc-o-container__wrapper mdc-u-spaced-mobile mdc-u-grid mdc-u-grid-gutter-xxl FullHero_mck-c-full-hero__title-container__YfybZ"><div class="mdc-u-grid mdc-u-grid-col-md-12"><div class="mdc-u-grid-col-md-start-2 mdc-u-grid-col-md-end-12 mdc-u-grid-col-lg-start-3 mdc-u-grid-col-lg-end-11 mdc-u-spaced-mobile mdc-u-align-center mdc-u-grid"><div><h1 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-u-ts-2 FullHero_mck-c-full-hero__heading__RgATx"><div>How the fashion industry can get into a metaverse mindset</div></h1></div><div><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-8 FullHero_mck-c-full-hero__date__jb4gN"><div><time datetime="2022-04-07T00:00:00Z">April 7, 2022</time> | Article</div></div></div><div><button data-component="mdc-c-button" aria-label="" type="button" id="button_id" class="mdc-c-button___U4iY2_2734c4f mdc-c-button--ghost mdc-c-button--size-medium FullHero_mck-c-full-hero__arrow__jtXdj" data-click-track="true" data-layer-event-prefix="UI Item" data-layer-action="click" data-layer-category="article" data-layer-text="skip article header section" data-layer-region="full hero"><span data-component="mdc-c-icon" class="mdc-c-icon___oi7ef_2734c4f mdc-c-icon--size-xl___3BEee_2734c4f mck-arrow-down-icon"></span></button></div></div></div></div></div></div></div></div><div class="mck-o-container"><div class="mck-o-container--wrapped mck-o-container--mobile-spacing mdc-u-grid mdc-u-grid-gutter-xxl"><section data-layer-region="article-body-header" class="mdc-u-grid mdc-u-grid-col-md-12 mck-u-animation-blur-in-400 byline-share-container"><div class="mdc-u-grid-col-md-start-2 mdc-u-grid-col-md-end-7 mdc-u-grid-col-lg-start-3 mdc-u-grid-col-lg-end-8 mdc-u-ts-10"></div></section><section class="mdc-u-grid mdc-u-grid-col-md-12 mck-u-animation-blur-in-400"><div class="mdc-u-grid-col-md-start-2 mdc-u-grid-col-md-end-12 mdc-u-grid-col-lg-start-3 mdc-u-grid-col-lg-end-11"><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-5"><div class="mck-u-links-inline">Shoppers, particularly those in Gen Z, are spending more time online and exploring the possibilities of the metaverse. Here’s what fashion and luxury players need to know about this emerging frontier.</div></div></div></section><main data-layer-region="article-body" class="mdc-u-grid mdc-u-grid-gutter-xxl"><div class="mdc-u-grid mdc-u-grid-col-1 mdc-u-grid-col-md-12"><div class="mdc-u-grid-col-md-start-2 mdc-u-grid-col-md-end-12 mdc-u-grid-col-lg-start-3 mdc-u-grid-col-lg-end-11"><div class="mdc-o-content-body mck-u-dropcap"><p><strong>There’s a lot of buzz</strong> surrounding the metaverse—which could be loosely defined as hyper-interactive, creative digital environments where people work, play, socialize, and shop. While the <a href="/featured-insights/mckinsey-explainers/what-is-the-metaverse">metaverse itself remains in its infancy</a>, there’s plenty of interest in its potential. For brands, and for the broader fashion industry, it could well offer new opportunities to engage Gen Z and other tech-savvy, young consumers.</p> <p>What do they need to know to tap in? And what role will nonfungible tokens (NFTs), gaming, and virtual fashion play in the future of shopping?</p> <p>These questions are the focus of one chapter from <em><a href="/industries/retail/our-insights/state-of-fashion-archive">The State of Fashion 2022</a></em>, the latest industry report from McKinsey, in partnership with <a href="https://www.businessoffashion.com/">the Business of Fashion</a> (BoF). Scroll on for insight on some of the most important findings about the metaverse mindset—and how it can offer fresh routes to creativity, community building, and commerce.</p> <div data-component="mdc-c-module-wrapper" data-module-theme="default" data-module-background="transparent" data-module-category="" class="FullBleedMedia_mck-c-fullbleed-media__WIpmy mck-c-module-wrapper"><div class="FullBleedMedia_mck-c-fullbleed-media__background-wrapper__9crX_"><style></style><div data-component="mdc-c-background-image" class="mdc-c-bg-image___GJdv1_2734c4f background-image-fullbleed-media-E8665EF1CED2426FB671B888BC20391A FullBleedMedia_mck-c-fullbleed-media__parallex-container__PQgJ_" role="img" aria-label="Woman at coffee shop working on laptop"></div></div><div class="mck-o-container FullBleedMedia_mck-c-fullbleed-media__wrapper__z0yvu"><div class="mck-o-container--wrapped FullBleedMedia_mck-c-fullbleed-media__wrapper-content__dB_sH"><div class="mdc-u-grid mdc-u-grid-col-md-12 FullBleedMedia_mck-c-fullbleed-media__wrapper-text__nqQYU"><div class="mdc-u-grid-col-span-6 mdc-u-grid-col-md-start-1"><div class="FullBleedMedia_mck-c-fullbleed-media__container-text__LUSu2"><div data-component="mdc-c-module-wrapper" data-module-theme="dark" data-module-background="deep-blue" data-module-category="" class=""><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-8 mck-c-fullbleed-media__container-description"><div class="mdc-o-content-body">Interactive, creative digital spaces are a natural evolution of how people use technology, and they reflect the ever-growing amount of time consumers spend online. Gen Z spent an average of eight hours per day on screens in 2020.</div></div></div></div></div></div></div></div></div> <div data-component="mdc-c-module-wrapper" data-module-theme="default" data-module-background="transparent" data-module-category="" class="FullBleedMedia_mck-c-fullbleed-media__WIpmy mck-c-module-wrapper"><div class="FullBleedMedia_mck-c-fullbleed-media__background-wrapper__9crX_"><style></style><div data-component="mdc-c-background-image" class="mdc-c-bg-image___GJdv1_2734c4f background-image-fullbleed-media-0755BDACDB0D4DD8AF7456CAFFC49859 FullBleedMedia_mck-c-fullbleed-media__parallex-container__PQgJ_" role="img" aria-label="Four mannikins displaying outfits "></div></div><div class="mck-o-container FullBleedMedia_mck-c-fullbleed-media__wrapper__z0yvu"><div class="mck-o-container--wrapped FullBleedMedia_mck-c-fullbleed-media__wrapper-content__dB_sH"><div class="mdc-u-grid mdc-u-grid-col-md-12 FullBleedMedia_mck-c-fullbleed-media__wrapper-text__nqQYU"><div class="mdc-u-grid-col-span-6 mdc-u-grid-col-md-start-7"><div class="FullBleedMedia_mck-c-fullbleed-media__container-text__LUSu2"><div data-component="mdc-c-module-wrapper" data-module-theme="dark" data-module-background="deep-blue" data-module-category="" class=""><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-8 mck-c-fullbleed-media__container-description"><div class="mdc-o-content-body">Personal expression is important to Gen Z, and fashion is one of the top three categories on which Zers seek to splurge or treat themselves. Does that carry over into the digital realm?</div></div></div></div></div></div></div></div></div> <div data-component="mdc-c-module-wrapper" data-module-theme="default" data-module-background="transparent" data-module-category="" class="FullBleedMedia_mck-c-fullbleed-media__WIpmy mck-c-module-wrapper"><div class="FullBleedMedia_mck-c-fullbleed-media__background-wrapper__9crX_"><style></style><div data-component="mdc-c-background-image" class="mdc-c-bg-image___GJdv1_2734c4f background-image-fullbleed-media-53D9BEF7D2924913A7FB5544AE62A373 FullBleedMedia_mck-c-fullbleed-media__parallex-container__PQgJ_" role="img" aria-label="Male sitting on couch and experiencing another world in VR goggles"></div></div><div class="mck-o-container FullBleedMedia_mck-c-fullbleed-media__wrapper__z0yvu"><div class="mck-o-container--wrapped FullBleedMedia_mck-c-fullbleed-media__wrapper-content__dB_sH"><div class="mdc-u-grid mdc-u-grid-col-md-12 FullBleedMedia_mck-c-fullbleed-media__wrapper-text__nqQYU"><div class="mdc-u-grid-col-span-6 mdc-u-grid-col-md-start-1"><div class="FullBleedMedia_mck-c-fullbleed-media__container-text__LUSu2"><div data-component="mdc-c-module-wrapper" data-module-theme="dark" data-module-background="deep-blue" data-module-category="" class=""><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-8 mck-c-fullbleed-media__container-description"><div class="mdc-o-content-body">It could. “There are more and more ‘second worlds’ where you can express yourself,” says Gucci chief marketing officer Robert Triefus. “[But] there is probably an underestimation of the value being attached to individuals who want to express themselves in a virtual world with a virtual product, [through] a virtual persona.”</div></div></div></div></div></div></div></div></div> <div data-component="mdc-c-module-wrapper" data-module-theme="default" data-module-background="transparent" data-module-category="" class="FullBleedMedia_mck-c-fullbleed-media__WIpmy mck-c-module-wrapper"><div class="FullBleedMedia_mck-c-fullbleed-media__background-wrapper__9crX_"><style></style><div data-component="mdc-c-background-image" class="mdc-c-bg-image___GJdv1_2734c4f background-image-fullbleed-media-B9976C24FE7B45BE95F5E98F635B4EAC FullBleedMedia_mck-c-fullbleed-media__parallex-container__PQgJ_" role="img" aria-label="Person typing on PC keyboard lit up with LED lights"></div></div><div class="mck-o-container FullBleedMedia_mck-c-fullbleed-media__wrapper__z0yvu"><div class="mck-o-container--wrapped FullBleedMedia_mck-c-fullbleed-media__wrapper-content__dB_sH"><div class="mdc-u-grid mdc-u-grid-col-md-12 FullBleedMedia_mck-c-fullbleed-media__wrapper-text__nqQYU"><div class="mdc-u-grid-col-span-6 mdc-u-grid-col-md-start-7"><div class="FullBleedMedia_mck-c-fullbleed-media__container-text__LUSu2"><div data-component="mdc-c-module-wrapper" data-module-theme="dark" data-module-background="deep-blue" data-module-category="" class=""><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-8 mck-c-fullbleed-media__container-description"><div class="mdc-o-content-body">His company made forays into the space with its Gucci Garden in the Roblox gaming metaverse—and saw 19 million visitors to it. Other fashion players are eyeing the $176 billion gaming industry, which attracts more than three billion players globally each year, especially given the appeal of engaging with and building communities in games and other virtual worlds.</div></div></div></div></div></div></div></div></div> <div data-component="mdc-c-module-wrapper" data-module-theme="default" data-module-background="transparent" data-module-category="" class="FullBleedMedia_mck-c-fullbleed-media__WIpmy mck-c-module-wrapper"><div class="FullBleedMedia_mck-c-fullbleed-media__background-wrapper__9crX_"><style></style><div data-component="mdc-c-background-image" class="mdc-c-bg-image___GJdv1_2734c4f background-image-fullbleed-media-B7CE08791C0C432387B030127E49D19D FullBleedMedia_mck-c-fullbleed-media__parallex-container__PQgJ_" role="img" aria-label="Metaverse virtual reality internet avatar"></div></div><div class="mck-o-container FullBleedMedia_mck-c-fullbleed-media__wrapper__z0yvu"><div class="mck-o-container--wrapped FullBleedMedia_mck-c-fullbleed-media__wrapper-content__dB_sH"><div class="mdc-u-grid mdc-u-grid-col-md-12 FullBleedMedia_mck-c-fullbleed-media__wrapper-text__nqQYU"><div class="mdc-u-grid-col-span-6 mdc-u-grid-col-md-start-1"><div class="FullBleedMedia_mck-c-fullbleed-media__container-text__LUSu2"><div data-component="mdc-c-module-wrapper" data-module-theme="dark" data-module-background="deep-blue" data-module-category="" class=""><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-8 mck-c-fullbleed-media__container-description"><div class="mdc-o-content-body">Indeed, gaming is increasingly an extension of the real world, and with the pandemic supercharging participation, it has become a prime target for fashion brands. Ralph Lauren, for instance, partnered with South Korean social network app Zepeto to create a virtual fashion collection where users could dress their avatars in exclusive products or appearance-altering “skins.”</div></div></div></div></div></div></div></div></div> <div data-component="mdc-c-module-wrapper" data-module-theme="default" data-module-background="transparent" data-module-category="" class="FullBleedMedia_mck-c-fullbleed-media__WIpmy mck-c-module-wrapper"><div class="FullBleedMedia_mck-c-fullbleed-media__background-wrapper__9crX_"><style></style><div data-component="mdc-c-background-image" class="mdc-c-bg-image___GJdv1_2734c4f background-image-fullbleed-media-A2A8696F716B44829113BE69BD90B244 FullBleedMedia_mck-c-fullbleed-media__parallex-container__PQgJ_" role="img" aria-label="Augmented reality shopping with garment visualization simulation technologies"></div></div><div class="mck-o-container FullBleedMedia_mck-c-fullbleed-media__wrapper__z0yvu"><div class="mck-o-container--wrapped FullBleedMedia_mck-c-fullbleed-media__wrapper-content__dB_sH"><div class="mdc-u-grid mdc-u-grid-col-md-12 FullBleedMedia_mck-c-fullbleed-media__wrapper-text__nqQYU"><div class="mdc-u-grid-col-span-6 mdc-u-grid-col-md-start-7"><div class="FullBleedMedia_mck-c-fullbleed-media__container-text__LUSu2"><div data-component="mdc-c-module-wrapper" data-module-theme="dark" data-module-background="deep-blue" data-module-category="" class=""><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-8 mck-c-fullbleed-media__container-description"><div class="mdc-o-content-body">For some consumers, digital fashion is a natural extension of applying social media filters on platforms such as Instagram and Snapchat, says Simon Windsor, cofounder and joint managing director at Dimension Studio, an agency that worked with Balenciaga on its video game. “We’re just at the tipping point of this new era.… It starts to change the meaning of fashion itself.”</div></div></div></div></div></div></div></div></div> <div data-component="mdc-c-module-wrapper" data-module-theme="default" data-module-background="transparent" data-module-category="" class="FullBleedMedia_mck-c-fullbleed-media__WIpmy mck-c-module-wrapper"><div class="FullBleedMedia_mck-c-fullbleed-media__background-wrapper__9crX_"><style></style><div data-component="mdc-c-background-image" class="mdc-c-bg-image___GJdv1_2734c4f background-image-fullbleed-media-87A86D8B9F3B49F8BC7889A696D22FA5 FullBleedMedia_mck-c-fullbleed-media__parallex-container__PQgJ_" role="img" aria-label="Colorful shoes walk on their own"></div></div><div class="mck-o-container FullBleedMedia_mck-c-fullbleed-media__wrapper__z0yvu"><div class="mck-o-container--wrapped FullBleedMedia_mck-c-fullbleed-media__wrapper-content__dB_sH"><div class="mdc-u-grid mdc-u-grid-col-md-12 FullBleedMedia_mck-c-fullbleed-media__wrapper-text__nqQYU"><div class="mdc-u-grid-col-span-6 mdc-u-grid-col-md-start-1"><div class="FullBleedMedia_mck-c-fullbleed-media__container-text__LUSu2"><div data-component="mdc-c-module-wrapper" data-module-theme="dark" data-module-background="deep-blue" data-module-category="" class=""><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-8 mck-c-fullbleed-media__container-description"><div class="mdc-o-content-body">Artificial intelligence and augmented reality could open up opportunities for new business models that leverage virtual fashion. Technology that allows for 360-degree views has already been used to present seasonal collections through online showrooms, and avatars of models have walked 3-D virtual runways.</div></div></div></div></div></div></div></div></div> <div data-component="mdc-c-module-wrapper" data-module-theme="default" data-module-background="transparent" data-module-category="" class="FullBleedMedia_mck-c-fullbleed-media__WIpmy mck-c-module-wrapper"><div class="FullBleedMedia_mck-c-fullbleed-media__background-wrapper__9crX_"><style></style><div data-component="mdc-c-background-image" class="mdc-c-bg-image___GJdv1_2734c4f background-image-fullbleed-media-A8A8C157137A4EC38AA395EBB58A58F5 FullBleedMedia_mck-c-fullbleed-media__parallex-container__PQgJ_" role="img" aria-label="Pixel image of document icon inside golden vintage frame"></div></div><div class="mck-o-container FullBleedMedia_mck-c-fullbleed-media__wrapper__z0yvu"><div class="mck-o-container--wrapped FullBleedMedia_mck-c-fullbleed-media__wrapper-content__dB_sH"><div class="mdc-u-grid mdc-u-grid-col-md-12 FullBleedMedia_mck-c-fullbleed-media__wrapper-text__nqQYU"><div class="mdc-u-grid-col-span-6 mdc-u-grid-col-md-start-7"><div class="FullBleedMedia_mck-c-fullbleed-media__container-text__LUSu2"><div data-component="mdc-c-module-wrapper" data-module-theme="dark" data-module-background="deep-blue" data-module-category="" class=""><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-8 mck-c-fullbleed-media__container-description"><div class="mdc-o-content-body">Nonfungible tokens, or NFTs, are one aspect of virtual environments that have seen an explosion of interest. NFTs are unique crypto assets whose authenticity and ownership are verified on blockchains and are bought, sold, and exchanged in the metaverse, often with cryptocurrency. In 2021, an NFT created by digital artist Mike Winkelmann—also known as Beeple—was sold at Christie’s auction house for a record-breaking $69.3 million.</div></div></div></div></div></div></div></div></div> <div data-component="mdc-c-module-wrapper" data-module-theme="default" data-module-background="transparent" data-module-category="" class="FullBleedMedia_mck-c-fullbleed-media__WIpmy mck-c-module-wrapper"><div class="FullBleedMedia_mck-c-fullbleed-media__background-wrapper__9crX_"><style></style><div data-component="mdc-c-background-image" class="mdc-c-bg-image___GJdv1_2734c4f background-image-fullbleed-media-868FD10EA87141F0BDE80EDD857FA463 FullBleedMedia_mck-c-fullbleed-media__parallex-container__PQgJ_" role="img" aria-label="NFT CryptoArt display in art gallery"></div></div><div class="mck-o-container FullBleedMedia_mck-c-fullbleed-media__wrapper__z0yvu"><div class="mck-o-container--wrapped FullBleedMedia_mck-c-fullbleed-media__wrapper-content__dB_sH"><div class="mdc-u-grid mdc-u-grid-col-md-12 FullBleedMedia_mck-c-fullbleed-media__wrapper-text__nqQYU"><div class="mdc-u-grid-col-span-6 mdc-u-grid-col-md-start-1"><div class="FullBleedMedia_mck-c-fullbleed-media__container-text__LUSu2"><div data-component="mdc-c-module-wrapper" data-module-theme="dark" data-module-background="deep-blue" data-module-category="" class=""><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-8 mck-c-fullbleed-media__container-description"><div class="mdc-o-content-body">Proponents argue that NFTs are potentially revolutionary: “This is fundamentally going to change digital ownership, creative structures, the creative economy, how we view money even,” said Karinna Nobbs, co-chief executive and chief experience officer of NFT marketplace The Dematerialised. “This is bigger than the internet.”</div></div></div></div></div></div></div></div></div> <div data-component="mdc-c-module-wrapper" data-module-theme="default" data-module-background="transparent" data-module-category="" class="FullBleedMedia_mck-c-fullbleed-media__WIpmy mck-c-module-wrapper"><div class="FullBleedMedia_mck-c-fullbleed-media__background-wrapper__9crX_"><style></style><div data-component="mdc-c-background-image" class="mdc-c-bg-image___GJdv1_2734c4f background-image-fullbleed-media-496CCE8D27FF4801AC09C2C8E77CB3E5 FullBleedMedia_mck-c-fullbleed-media__parallex-container__PQgJ_" role="img" aria-label="Red women's handbag"></div></div><div class="mck-o-container FullBleedMedia_mck-c-fullbleed-media__wrapper__z0yvu"><div class="mck-o-container--wrapped FullBleedMedia_mck-c-fullbleed-media__wrapper-content__dB_sH"><div class="mdc-u-grid mdc-u-grid-col-md-12 FullBleedMedia_mck-c-fullbleed-media__wrapper-text__nqQYU"><div class="mdc-u-grid-col-span-6 mdc-u-grid-col-md-start-7"><div class="FullBleedMedia_mck-c-fullbleed-media__container-text__LUSu2"><div data-component="mdc-c-module-wrapper" data-module-theme="dark" data-module-background="deep-blue" data-module-category="" class=""><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-8 mck-c-fullbleed-media__container-description"><div class="mdc-o-content-body">For the fashion world, NFTs can be used to authenticate products or serve as collectible pieces in their own right. And in the past year, there was a wave of engagement, particularly among luxury players and via the gaming universe. Louis Vuitton launched a video game with collectible NFTs, partially designed by Beeple, for its 200th anniversary.</div></div></div></div></div></div></div></div></div> <div data-component="mdc-c-module-wrapper" data-module-theme="default" data-module-background="transparent" data-module-category="" class="FullBleedMedia_mck-c-fullbleed-media__WIpmy mck-c-module-wrapper"><div class="FullBleedMedia_mck-c-fullbleed-media__background-wrapper__9crX_"><style></style><div data-component="mdc-c-background-image" class="mdc-c-bg-image___GJdv1_2734c4f background-image-fullbleed-media-A265ACA829CC411BA94FA11D26440D1F FullBleedMedia_mck-c-fullbleed-media__parallex-container__PQgJ_" role="img" aria-label="Melted shoe on a metal table"></div></div><div class="mck-o-container FullBleedMedia_mck-c-fullbleed-media__wrapper__z0yvu"><div class="mck-o-container--wrapped FullBleedMedia_mck-c-fullbleed-media__wrapper-content__dB_sH"><div class="mdc-u-grid mdc-u-grid-col-md-12 FullBleedMedia_mck-c-fullbleed-media__wrapper-text__nqQYU"><div class="mdc-u-grid-col-span-6 mdc-u-grid-col-md-start-1"><div class="FullBleedMedia_mck-c-fullbleed-media__container-text__LUSu2"><div data-component="mdc-c-module-wrapper" data-module-theme="dark" data-module-background="deep-blue" data-module-category="" class=""><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-8 mck-c-fullbleed-media__container-description"><div class="mdc-o-content-body">With no shortage of marketing hype, there are indications that digital fashion assets can generate significant revenue streams. Still, monetization opportunities are likely to be contingent on the psychology of scarcity and limited editions driving NFT mania—together with the security of authentication and the potential for community building that they provide.</div></div></div></div></div></div></div></div></div> <div data-component="mdc-c-module-wrapper" data-module-theme="default" data-module-background="transparent" data-module-category="" class="FullBleedMedia_mck-c-fullbleed-media__WIpmy mck-c-module-wrapper"><div class="FullBleedMedia_mck-c-fullbleed-media__background-wrapper__9crX_"><style></style><div data-component="mdc-c-background-image" class="mdc-c-bg-image___GJdv1_2734c4f background-image-fullbleed-media-7AC5E1519C7E45AC854D1AB2C1959E74 FullBleedMedia_mck-c-fullbleed-media__parallex-container__PQgJ_" role="img" aria-label="Colorful at sign in metaverse"></div></div><div class="mck-o-container FullBleedMedia_mck-c-fullbleed-media__wrapper__z0yvu"><div class="mck-o-container--wrapped FullBleedMedia_mck-c-fullbleed-media__wrapper-content__dB_sH"><div class="mdc-u-grid mdc-u-grid-col-md-12 FullBleedMedia_mck-c-fullbleed-media__wrapper-text__nqQYU"><div class="mdc-u-grid-col-span-6 mdc-u-grid-col-md-start-7"><div class="FullBleedMedia_mck-c-fullbleed-media__container-text__LUSu2"><div data-component="mdc-c-module-wrapper" data-module-theme="dark" data-module-background="deep-blue" data-module-category="" class=""><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-8 mck-c-fullbleed-media__container-description"><div class="mdc-o-content-body">There’s also reason to exercise caution, with an eye to the environmental impact of the blockchain technologies that underlie NFTs, as well as cybersecurity concerns. For instance, a cyberattack on the artist Banksy’s website caused a collector to pay upward of $330,000 for a counterfeit NFT.</div></div></div></div></div></div></div></div></div> <div data-component="mdc-c-module-wrapper" data-module-theme="default" data-module-background="transparent" data-module-category="" class="FullBleedMedia_mck-c-fullbleed-media__WIpmy mck-c-module-wrapper"><div class="FullBleedMedia_mck-c-fullbleed-media__background-wrapper__9crX_"><style></style><div data-component="mdc-c-background-image" class="mdc-c-bg-image___GJdv1_2734c4f background-image-fullbleed-media-06B7477DD4F640A39CCACD1BD3DDBF02 FullBleedMedia_mck-c-fullbleed-media__parallex-container__PQgJ_" role="img" aria-label="Friends using mobile phones while lying on sofa"></div></div><div class="mck-o-container FullBleedMedia_mck-c-fullbleed-media__wrapper__z0yvu"><div class="mck-o-container--wrapped FullBleedMedia_mck-c-fullbleed-media__wrapper-content__dB_sH"><div class="mdc-u-grid mdc-u-grid-col-md-12 FullBleedMedia_mck-c-fullbleed-media__wrapper-text__nqQYU"><div class="mdc-u-grid-col-span-6 mdc-u-grid-col-md-start-1"><div class="FullBleedMedia_mck-c-fullbleed-media__container-text__LUSu2"><div data-component="mdc-c-module-wrapper" data-module-theme="dark" data-module-background="deep-blue" data-module-category="" class=""><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-8 mck-c-fullbleed-media__container-description"><div class="mdc-o-content-body">At a minimum, fashion’s foray into the metaverse suggests promising new routes for consumer engagement. And while no one can predict exactly how this rapidly growing digital universe will shape up, the opportunities it presents are exciting—for luxury brands, retailers, and consumers themselves.</div></div></div></div></div></div></div></div></div> <p><em>Download</em> <a href="/~/media/mckinsey/industries/retail/our insights/state of fashion/2022/the-state-of-fashion-2022.pdf">The State of Fashion 2022</a>, <em>the full report on which this article is based (PDF–14MB), or read more about the fashion industry’s 2022 prospects <a href="/industries/retail/our-insights/state-of-fashion-archive">here</a>.</em></p></div><div class="container-placeholder"></div></div></div><div class="mdc-u-grid mdc-u-grid-gutter-xl"><section role="contentinfo" data-layer-region="article-about-authors" class="mdc-u-grid mdc-u-grid-col-md-12 AboutAuthor_mck-c-about-author__nRJzu"><div class="mdc-u-grid-col-md-start-2 mdc-u-grid-col-md-end-12 mdc-u-grid-col-lg-start-3 mdc-u-grid-col-lg-end-11"><h5 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-c-heading--title___5qyOB_2734c4f mdc-c-heading--border___K8dj3_2734c4f mdc-u-align-center"></h5><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-8 mck-u-links-inline mck-u-links-inline--secondary mdc-u-mt-5"><div><p>This experience draws on the full report, written by <strong><a href="/our-people/anita-balchandani">Anita Balchandani</a></strong>, <strong><a href="/sitecore/service/notfound.aspx?item=web%3a%7b00b01d0b-9bbf-4017-8e19-4c325ecad1d6%7d%40en">Achim Berg</a></strong>, <strong>Saskia Hedrich</strong>, <strong>Jakob Ekeløf Jensen</strong>, <strong>Leila Le Merle</strong>, and <strong><a href="/our-people/felix-rolkens">Felix Rölkens</a></strong> of McKinsey, in collaboration with Business of Fashion CEO <strong>Imran Amed</strong>. The page reflects the collaborative work of McKinsey Global Publishing’s Torea Frey, Julie Macias, Babi Oloko, Diane Rice, Dana Sand, Sarah Thuerk, and Nathan Wilson.</p></div></div></div></section><section class="mdc-u-grid mdc-u-grid-col-md-12 mck-u-screen-only"><div class="mdc-u-grid-col-md-start-2 mdc-u-grid-col-md-end-12 mdc-u-grid-col-lg-start-5 mdc-u-grid-col-lg-end-9"><h5 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-c-heading--title___5qyOB_2734c4f mdc-c-heading--border___K8dj3_2734c4f mdc-u-align-center">Explore a career with us</h5><div data-component="mdc-c-link-container" class="mdc-c-link-container___xefGu_2734c4f mdc-c-link-container--align-center___ar3mu_2734c4f"><a data-component="mdc-c-link" href="/careers/search-jobs" class="mdc-c-button___U4iY2_2734c4f mdc-c-button--secondary___Boipq_2734c4f mdc-c-button--size-large___jwpUy_2734c4f" aria-label="Search Openings" data-layer-event-prefix="CTA Link" data-layer-action="click" 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class="mdc-c-link___lBbY1_2734c4f"><picture data-component="mdc-c-picture" class="Card_wrapper-image__8b4P6"><style>.picture-uniqueKey-thes-0 { aspect-ratio: 16/9 }</style><img alt="Female model walking on catwalk in front of crowd at fashion show." class="picture-uniqueKey-thes-0" src="/~/media/mckinsey/industries/retail/our%20insights/state%20of%20fashion/2024/the-state-of-fashion-2024-138489004-thumb-1536x1536.jpg?cq=50&mw=767&car=16:9&cpy=Center" loading="lazy"/></picture></a></div><div class="Card_wrapper-text__U6Y3k"><div data-component="mdc-c-content-block" class="mdc-c-content-block___7p6Lu_2734c4f Card_content-block__pF6Z1"><span>Report</span><h6 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-u-ts-6"><a data-component="mdc-c-link" href="/industries/retail/our-insights/state-of-fashion-2024" class="mdc-c-link-heading___Zggl8_2734c4f mdc-c-link___lBbY1_2734c4f"><div>The State of Fashion 2024: Finding pockets of growth as uncertainty reigns</div></a></h6></div></div></div><div class="mdc-u-grid mdc-u-grid-gutter-lg Card_card__diA2r Card_hover-effect__RGb9b"><div class="Card_wrapper-image__8b4P6"><a data-component="mdc-c-link" href="/industries/technology-media-and-telecommunications/our-insights/what-tech-innovation-means-for-the-business-of-fashion" class="mdc-c-link___lBbY1_2734c4f"><picture data-component="mdc-c-picture" class="Card_wrapper-image__8b4P6"><style>.picture-uniqueKey-what-0 { aspect-ratio: 16/9 }</style><img alt="What tech innovation means for the business of fashion" class="picture-uniqueKey-what-0" src="/~/media/mckinsey/industries/technology%20media%20and%20telecommunications/high%20tech/our%20insights/what%20tech%20innovation%20means%20for%20the%20business%20of%20fashion/standard-tech-fashion.jpg?cq=50&mw=767&car=16:9&cpy=Center" loading="lazy"/></picture></a></div><div class="Card_wrapper-text__U6Y3k"><div data-component="mdc-c-content-block" class="mdc-c-content-block___7p6Lu_2734c4f Card_content-block__pF6Z1"><span>Podcast</span><h6 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-u-ts-6"><a data-component="mdc-c-link" href="/industries/technology-media-and-telecommunications/our-insights/what-tech-innovation-means-for-the-business-of-fashion" class="mdc-c-link-heading___Zggl8_2734c4f mdc-c-link___lBbY1_2734c4f"><div>What tech innovation means for the business of fashion</div></a></h6></div></div></div></div></div></div></div></main></div><script id="__NEXT_DATA__" type="application/json">{"props":{"pageProps":{"locale":"en","dictionary":{},"sitecoreContext":{"route":{"name":"How the fashion industry can get into a metaverse mindset","displayName":"How the fashion industry can get into a metaverse mindset","fields":null,"databaseName":"web","deviceId":"fe5d7fdf-89c0-4d99-9aa3-b5fbd009c9f3","itemId":"5858cbaa-fd44-4e11-bf2d-632e30fb35fd","itemLanguage":"en","itemVersion":1,"layoutId":"ae753eb4-a035-40b4-83bf-4b4438df6742","templateId":"683910db-02ba-40ba-92e7-726c880160a9","templateName":"ArticleJSS","placeholders":{"jss-main":[{"uid":"232bb7e9-289f-492d-a916-2b6185e44a84","componentName":"ArticleTemplate","dataSource":"","fields":{"data":{"articleTemplate":{"title":{"jsonValue":{"value":"How the fashion industry can get into a metaverse mindset"}},"sEOTitle":{"value":"The metaverse fashion industry connection"},"description":{"jsonValue":{"value":"Shoppers, particularly those in Gen Z, are spending more time online and exploring the possibilities of the metaverse. Here’s what fashion and luxury players need to know about this emerging frontier."}},"sEODescription":{"value":"The emergence of the metaverse offers incredible potential for fashion and luxury players. McKinsey explores how brands can tap into this new frontier."},"displayDate":{"jsonValue":{"value":"2022-04-07T00:00:00Z"}},"body":{"value":"\u003cp\u003e\u003cstrong\u003eThere\u0026rsquo;s a lot of buzz\u003c/strong\u003e surrounding the metaverse\u0026mdash;which could be loosely defined as hyper-interactive, creative digital environments where people work, play, socialize, and shop. While the \u003ca href=\"/featured-insights/mckinsey-explainers/what-is-the-metaverse\"\u003emetaverse itself remains in its infancy\u003c/a\u003e, there\u0026rsquo;s plenty of interest in its potential. For brands, and for the broader fashion industry, it could well offer new opportunities to engage Gen Z and other tech-savvy, young consumers.\u003c/p\u003e\n\u003cp\u003eWhat do they need to know to tap in? And what role will nonfungible tokens (NFTs), gaming, and virtual fashion play in the future of shopping?\u003c/p\u003e\n\u003cp\u003eThese questions are the focus of one chapter from \u003cem\u003e\u003ca href=\"/industries/retail/our-insights/state-of-fashion-archive\"\u003eThe State of Fashion 2022\u003c/a\u003e\u003c/em\u003e, the latest industry report from McKinsey, in partnership with \u003ca href=\"https://www.businessoffashion.com/\"\u003ethe Business of Fashion\u003c/a\u003e (BoF). Scroll on for insight on some of the most important findings about the metaverse mindset\u0026mdash;and how it can offer fresh routes to creativity, community building, and commerce.\u003c/p\u003e\n[[FullBleedPhoto 1]]\n[[FullBleedPhoto 2]]\n[[FullBleedPhoto 3]]\n[[FullBleedPhoto 4]]\n[[FullBleedPhoto 5]]\n[[FullBleedPhoto 6]]\n[[FullBleedPhoto 7]]\n[[FullBleedPhoto 8]]\n[[FullBleedPhoto 9]]\n[[FullBleedPhoto 10]]\n[[FullBleedPhoto 11]]\n[[FullBleedPhoto 12]]\n[[FullBleedPhoto 13]]\n\u003cp\u003e\u003cem\u003eDownload\u003c/em\u003e \u003ca href=\"/~/media/mckinsey/industries/retail/our insights/state of fashion/2022/the-state-of-fashion-2022.pdf\"\u003eThe State of Fashion 2022\u003c/a\u003e, \u003cem\u003ethe full report on which this article is based (PDF\u0026ndash;14MB), or read more about the fashion industry\u0026rsquo;s 2022 prospects \u003ca href=\"/industries/retail/our-insights/state-of-fashion-archive\"\u003ehere\u003c/a\u003e.\u003c/em\u003e\u003c/p\u003e"},"isFullScreenInteractive":{"boolValue":false},"hideStickySocialShareBar":{"boolValue":false},"desktopID":{"value":""},"mobileID":{"value":""},"desktopURL":{"value":""},"mobileURL":{"value":""},"desktopPaddingPercentage":{"value":""},"mobilePaddingPercentage":{"value":""},"desktopOverrideHeight":{"value":""},"mobileOverrideHeight":{"value":""},"cerosOembedURL":{"value":""},"cerosRenderMode":{"targetItem":null},"cerosBackgroundColor":{"targetItem":null},"hideByLine":{"boolValue":false},"tableOfContentsTitle":{"value":"TABLE OF CONTENTS"},"accessStatus":{"targetItem":{"key":{"value":"RegisteredUsers"},"value":{"value":"Registered Users"}}},"articleType":{"targetItem":{"displayName":"Article"}},"hasSpecialReport":{"boolValue":false},"contentType":{"targetItem":{"displayName":"Article"}},"sourcePublication":{"targetItem":null},"externalPublication":{"value":""},"mobileReady":{"boolValue":true},"forClientsOnly":{"boolValue":false},"excludeFromClientLink":{"boolValue":false},"originalPublishDate":{"jsonValue":{"value":"2022-04-07T00:00:00Z"}},"footnotes":{"value":""},"contributoryPractice":{"targetItems":[{"displayName":"Retail"}]},"aboutTheAuthors":{"value":"\u003cp\u003eThis experience draws on the full report, written by \u003cstrong\u003e\u003ca href=\"/our-people/anita-balchandani\"\u003eAnita Balchandani\u003c/a\u003e\u003c/strong\u003e, \u003cstrong\u003e\u003ca href=\"/sitecore/service/notfound.aspx?item=web%3a%7b00b01d0b-9bbf-4017-8e19-4c325ecad1d6%7d%40en\"\u003eAchim Berg\u003c/a\u003e\u003c/strong\u003e, \u003cstrong\u003eSaskia Hedrich\u003c/strong\u003e, \u003cstrong\u003eJakob Ekel\u0026oslash;f Jensen\u003c/strong\u003e, \u003cstrong\u003eLeila Le Merle\u003c/strong\u003e, and \u003cstrong\u003e\u003ca href=\"/our-people/felix-rolkens\"\u003eFelix R\u0026ouml;lkens\u003c/a\u003e\u003c/strong\u003e of McKinsey, in collaboration with Business of Fashion CEO \u003cstrong\u003eImran Amed\u003c/strong\u003e. The page reflects the collaborative work of McKinsey Global Publishing\u0026rsquo;s Torea Frey, Julie Macias, Babi Oloko, Diane Rice, Dana Sand, Sarah Thuerk, and Nathan Wilson.\u003c/p\u003e"},"authors":{"targetItems":[]},"nonPartnerAuthors":{"targetItems":[]},"interactiveToUse":{"targetItem":null},"enableArticleComponents":{"boolValue":false},"relatedArticles":{"targetItems":[{"sourcePublication":{"targetItem":null},"publicationSource":null,"externalPublication":{"value":""},"title":{"value":"The State of Fashion 2024: Finding pockets of growth as uncertainty reigns"},"url":{"path":"/industries/retail/our-insights/state-of-fashion-2024"},"eyebrow":{"targetItem":{"name":"Report"}},"articleType":{"targetItem":{"name":"Report"}},"contentType":{"targetItem":{"name":"Article"}},"description":{"value":"Fashion companies will face economic headwinds, technology shifts, and an evolving competitive landscape in 2024. 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