When the metaverse meets one of the most established luxury fashion Maison.

On September 20th, 2021 at 8:00PM EST, Balenciaga launched its collection in collaboration with Fortnite. This is one of most recent forays of luxury fashion into the metaverse after Gucci’s release of digital sneakers filter and LV video game “Endless Runner”. But it is not the storied fashion houses’ first collaboration with Epic Game, the developer of Fortnite, under the creative direction of Demna Gvasalia. Indeed, they launched a video game-like digital presentation, “Afterworld”, to present Balenciaga’s Fall 2021 collection. “From there, we have continued to be inspired by the creativity of Unreal and Fortnite communities” said Gvasalia in a statement. The collection was made available within the game as evolutive interactive “skins” and weapons made from Balenciaga’s line of accessories like the speed sneakers and the hourglass handbag, all sold around $10. But more critically, it was also made available on the Balenciaga website with a collection of physical apparel with much heftier price tags ranging from $395 for caps to more than a thousand dollars for outerwear.

This shows the rising interest of luxury fashion for things related to the digital world, starting with NFTs, which appears as a promising way for the fashion industry to break into the metaverse. What are Fortnite, NFTs, why and how could they be related to luxury fashion and art you ask? More critically, what does it matter for the future of luxury fashion marketing? 

To start with, for those unacquainted with video games like myself, Fortnite is a highly popular online game which can be played in four main modes of which the most popular is Royal Battle, involving combat and strategy to be the last one standing. More interestingly for our purpose, there is a Creative mode where players can design their own island, character, and interact with other players doing things as mundane as attending a concert or visiting a digital Balenciaga store. This is where creative inputs like fashion come to play. The Balenciaga collaboration are not exactly NFTs but they are a way to bridge the gap between online and physical creativity.

Mainly associated with digital art since its explosion at the beginning of 2021, NFTs, or Non-Fungible Tokens at their core are unique digital assets. They rely on the same blockchain technology as bitcoins except that they cannot be swapped one for the other equally. They are unique, and therefore, potentially collectible. NFTs started gaining popularity in video-games first, in the form of limited edition cards, objects, or digital assets of any form. Balenciaga deciding to leverage Fortnite’s community and success therefore makes a lot of sense considering this audience is already sensitive to collectibles and the exclusive aura of luxury resonates with these consumers.

What is more, Demna Gvasalia has been redefining the identity of Balenciaga to cater to a younger more connected audience that is using video games, or, if not using it, is well-versed in the digital culture including social media and the metaverse at large. This strategy is a way to expand and retain the Maison’s cultural relevance beyond the traditional consumers of luxury fashion on one hand and beyond the uniquely physical world on the other.

Indeed, one of the main challenges for luxury fashion brands trying their feet in the metaverse is bridging the gap between digital and physical. Brands like RTFKT Studio propose NFTs redeemable for their physical twin, made in collaboration with digital artists. Balenciaga, not doing exactly the same, is going in the same direction by proposing both a digital and physical collection, albeit at dramatically different price points testifying of the prominence of the material world for fashion. And indeed, fashion is a highly physical experience involving all senses, which limits its ability to translate in the digital world and raises challenges for brands trying to break into this space.

In fact, there are two main aspects to what is at stake here: creating solutions to link the currently quite hermetic physical and digital worlds. This challenge goes beyond fashion but is especially relevant for objects we live in, in direct contact with our skins. The second aspect is the redefinition of cultural relevance and value systems for young generations and those involved in the metaverse. Pixels have value if those involved in the space, using it and owning it, think it has value beyond the monetary aspect, especially when it relates to something as versatile and zeitgeist-dependent as fashion.

One of the avenues to explore is social media and platforms such as Instagram or TikTok which have permeated our daily lives. Serving as a vitrine for fashion and luxury brands, they have the ability to give relevance to digital assets like NFTs and potentially expand the possibilities of our physical world in an interactive manner. Interestingly, Fortnite players can submit pictures of their characters dressed in Balenciaga outfit to be featured within the game’s town square, while IRL advertisement billboards in Times Square display Fortnite characters, showing the potential marketing capacity of blurring the lines between physical and digital. The main challenge is moving beyond the stage of gadget to fill (or create) an actual need for the consumer. The digital space has the potential to create a new creative space embodying the epitome of self-reflection, particularly relevant for younger generations. 

As of now, there is two potential audiences, the metaverse users and the traditional fashion consumers. These two subsets are pretty siloed but it might not be the case forever and brands need to position themselves strategically for when it happens. All in all, the space is still trying out ways to break into NFTs and the digital world, but this is only the beginning and brands will keep trying and failing before finding a way to bridge the gap and make profit, online, physically, and critically at the intersection of both.

Sources:
1. GQ, “Balenciaga Fortnite Collaboration”
2. HighSnobiety, “Fortnite Balenciaga Collaboration Release Info”
3. Vogue, “Balenciaga and Fortnite team up for a digital-to-physical partnership”