Gen Z consumers are shifting from traditional games to user-generated content (UGC) games like Roblox and Fortnite, which allow them to create their own content and experiences, aligning with their desire for creativity and self-expression. This shift has led to a significant increase in video game advertising spending in the US, nearly doubling from $3.1 billion in 2019 to $5.8 billion in 2022. Luxury brands like Gucci, Balenciaga, and Louis Vuitton are actively embracing virtual platforms, leading the way in luxury activations.
The 2022 Metaverse Fashion Trends Report indicates that 75 percent of Roblox users plan to spend money on digital fashion. Virtual environments are increasingly becoming a means for brands to capture attention and build communities around their values. These environments represent an evolution of traditional brand engagement, providing a deeper and immersive form of interaction.
Luxury brands are partnering with virtual platforms and technology companies to enhance their presence in the metaverse. For instance, LVMH has collaborated with Epic Games to integrate 3D technology tools into its design process, create virtual fitting rooms, and develop augmented reality (AR) experiences. Gucci and Balenciaga have made successful forays into Roblox and Fortnite, attracting millions of visitors.
The future of virtual brand experiences is promising, with persistent experiences like Roblox’s “Gucci Town” expected to continue growing. Games are increasingly becoming the social networks of the future, enabling brands to connect with Gen Z consumers and build communities. The top platforms include Roblox, Minecraft, and Fortnite, with Apple’s upcoming “mixed reality” headset expected to provide a more immersive experience. Luxury brands are preparing for this by developing metaverse activations tailored to the Apple ecosystem. The convergence of fashion, gaming, and technology is creating exciting opportunities for brands to engage with the younger generation and shape the future of advertising and consumer interaction.
