Fashion futures

FASHION FUTURES

DIVERSITY & INCLUSIVITY

FASHION FUTURE TRENDS

A look at how the latest trends, collaborations, and technologies are transforming the industry.

LUXURY COLLABRATIONS

HELLO WELCOME .

FUTURE THEMES

COST OF LIVING

“In 2023, the global fashion industry will need to weather inflation while finding opportunities in shifting consumer patterns, channel and digital marketing strategies, and manufacturing approaches.” (Mckinsey,2022).

ue to rising living costs, people are fac- ing increasingfinancial pressure causing “shoppers to tighten their purse strings and having to make tougher decisions on what to spend their money on amid rising inflation” (wgsn,2022)In the UK, 92% of households say their cost of living has in- creased since a year ago. A monthly increase in house- hold costs was experienced by 67 % of households in the same month. (Statista,2023). In an attempt to save money and pay for rent, 16% of shoppers con- tinue to look for ways to keep the costs down (appre- alresources,2022). More than two-thirds of consumers have stopped buying non-essential items, while 92% have changed how they shop (mirror,2022).

Consumers are spending less on apparel 38% and beauty

29%(Mauser 2022). As consumers continue to shop for bargains and goods on sale, the fashion and retail industries are at risk. In order to adapt to consumers’ changing needs, fashion brands, retailers and beauty have had to adjust their prices and introduce several new trends, such as refills and resales. In the following pages, will forecast how the industry has incorporated refills, rentals, and resales into its business models in order to keep its customers engaged.

Brands like Adidas are utilizing these money-saving strategies with its “wear longer” strategy to change the way we shop and to increase longevity on items. Adidas joins the growing list of major brands to test the waters with resale. “By giving used clothes and shoes the opportunity to be reused or repurposed by someone new, adidas hopes to create a circular product lifecycle for the future (Fashionunited,2022).

As shown in Figure 1 from the Thread Up 2023 resale report, value is the top driver of fashion industry purchasing behavior. Cost of living crisis is affecting people to reduce their spending on apparel, resulting in price being the main factor in deciding on clothing purchases.

JAccording to Statista, figure 2 illustrates the actions consumers are taking in response to the cost of living crisis. It highlights that 69% of consumers are spending less on non-essentials, including apparel and beauty products.

Figure 1 (Threadup,2023). Figure

(Stastista,2023).

BEAUT REFILL

“Given the rising cost of living, Many consumers are looking for more affordable options, and with a more experimental style of wearing fragrances, smaller-sized and lower-priced option” (Seipp,2023) . Brands have begun to reduce the barrier to purchasing by reducing bottle sizes, offering competitive loyalty rewards, and offering low-cost refills” (car,2022). In the industry, market leaders are understanding that refill is more sustainable and cheaper for consumers and “The majority of Beauty consumers find sustainability and ethics important when choosing a beauty or wellness product. With “ Refillable product allow consumer to reduce waste they produce by extending the life of products packaging” (mintel,2022).

Arefill is a process through which consumers can reuse or refill their previous packaging with more of the original product and More beauty brands are offering product refills—from fragrance to skincare and makeup’ (march,2022).

.9 It’s used in several industries including food, beauty, and liquids. As consumers look for more for less, many beauty brands are now offering refills as a cost-effective way so consumer can continue with their beauty habits during the cost of living crisis.

The popularity of refill product options has been proven; sales of refills increased 364% in the period from January to the end of July 2022, compared to the same period last year. (warn,2022).and “Refillable and reusable packaging sales were estimated at $42 billion in 2022 and are projected to grow 5% annually, rising to $53.5 billion by 2027—which is forecast to be 4.2% of all global packaging sales” (beauty packaging,2022) ultimately driving the demand for refillables. Refill stations have been introduced by brands in recent years, for example “The Body Shop, which has rolled out its refill stations across the country offering aluminium bottle can be filled and refilled with a 20% saving” (march,2023).

To be successful using refill in the industry, Brands must emphasise durability, while another appealing prospect is investing in high quality packaging to ensure long-term success. Also, refills must be convenient to use.

It is evident from Figure 3 that consumer interest in refillable products is continuing grow in the beauty industry, with a 100% increase between 2020 and 2022. (Stylesstage,2022).

“Sales of refillable prestige beauty products increased 47% from January to the end of July 2022 in the UK, highlighting the influence of the conscious consumer”(Threadup,2022).

(Thebodyshop,2022).

RESALE

“Brands with resale shops increased 275% from 2020”. (Threadup,2022). (Fashionunited,2021).

As the cost of living increases and consumers try to save money, they are also becoming more interested in sustainable and responsible shopping. Buying and reselling is a new market trend which offers consumers a way to save money while purchasing sustainably. With “58% of consumers say second hand has helped them in some way during a time of inflation”. (threadup,2022). This demonstrates how the second-hand market has gained significance as a result of the cost of living crisis. A growing number of brands are realizing the potential of the second-hand market as it grows in popularity. Besides resale platforms like Vinted and Depop, resale is now also facilitated by brand-owned resale platform- “brands with retail shops increase by 275% from 2020 to 2021”. (Threadup,2022).

The resale market is gaining popularity

“in 2021 244 million consumers said that they are open to shopping second hand products” (threadup,2022). and it predicted to continue thriving in the new finical crisis with “second hand expected to grow 127 % by 2026”(threadup,2022). Resale initiatives have been launched by many brands across the market, from north face to urban outfitters. The resale market is gaining popularity

“in 2021 244 million consumers said that they are open to shopping second hand products” (threadup,2022). and it predicted to continue thriving in the new finical crisis with “second hand expected to grow 127 % by 2026”(threadup,2022). Resale initiatives have been launched by many brands across the market, from north face to urban outfitters.

"Extending the Urban Renewal strategy is part of Urban Outfitters commitment to circular fashion"(wwd,2021). Urban Outfitters launched a resale platform partnership with reseller " Nuuly Rent, the subscription rental service for women’s clothing". This new launch collaboration offers “resale marketplace where anyone can buy or sell women's, men's, and kids' apparel and accessories"(wright,2021)." Customers will have the opportunity to resell products from any brand and will be able to transfer their earnings directly into their bank account" People who are cautious about their fashion spending during the costof-living crisis will benefit from this option because it helps reduce the number of items sold and also keep control of money seamless. As part of its ongoing effort to be more sustainable and the ongoing effects of the cost of living crisis "Urban Outfitters, Inc says its customers are very active in the resale market, with three-quarters having made second hand purchases and nearly half having sold second hand items in the past year". (wright,2021).

Technological developments have aided the growth of the second hand industry, with “42% say second hand has become more accessible- with emergence of technology and online marketplaces” (ThreadUp2022). Despite this advancement in technology and continuing cost of living crisis, consumers are becoming increasingly accepting of second-hand clothing “25% of consumers saying they’ll consider buying more second-hand apparel if prices keep raising (ThreadUp 2022), which means that the resale market will continue to expand. Reselling is becoming increasingly important to brands with 30% of the Top 20 brands currently offer dedicated resale programs” (Threadup,2023).

From the Thread Up resale report, figure 4 shows the rise in retailers with their own resale programs in 2022, as the number of retailers with resale programs soared. A large majority of customers need to see resale incorporated into brands with 86% already reselling.

(Nuulythift,2022).

(Figure 4,Threadup,2023).

RENTAL

“The online fashion rental market is expected to grow more than 10 percent year-on-year until 2027” (Fashionunited,2021).

Fashion rentals allow you to try the newest styles without committing to purchasing them. You can return an item to the company once you’re done using it. “In more and more categories, consumers are choosing to rent rather than own goods outright”. In response to rising living costs, rental is another theme emerging in the fashion market providing popularity. With the crisis saving money for bills is number one priority but consumer want to be able to continuing shopping the items they love at cheaper price and quality. “Online fashion rental market to grow over 10 percent annual-ly”(Rodriguez,2021). “fuelled by ever sustainability-conscious consumers, declining spending power” (Rodriguez,2021).

With new styles arrive each season and the social pressure is high- renting allows consumers to rent stylish clothing for a fraction of the cost. this is attractive to consumer as in the current world climate “Inflation is soaring, with gas and energy prices sky-high, leading to a rising cost of living affecting mostconsumer goods, 44%of consumers say they’re cutting back spending on apparel”(Akseli,2022). For consumers who remain diligent about money will continue to see clothing rental as a viable option to save money and benefit from the experience.To remain relevant in this market segment, brands could first influence consumers’ purchasing decisions and stop impulsive purchases by expanding a rental model to include trials and subsequent purchases.

A lot of brands are paying attention to the rise in rental, and brands such as Selfridges are already at the forefront of rental innovation. Selfridges have created a instore pop up rental and “The rentals will be available via the Selfridges website and powered by Hurr Enterprise, operating using the same technology that powers the Hurr rental platform. (Stone,2021). there rental service gives “the opportunity to experience the very best Selfridges has to offer- including some of the biggest cult brands of the moment, such as Ganni, Cult Gaia, Off White and Reformation, as well as timeless designers like Prada, Saint Laurent and Bottega Veneta”(Pantony,2021). In this way, budget-conscious customers can enjoy luxury items without committing to purchasing them. By incorporating a rental service into their business offering, retailers like Selfridges demonstrate that rental services are increasing in popularity in the industry and will continue to grow as demand grows.

Figure 5 is a graph by Statista which shows the revenue of the rental market worldwide, it highlights the fact that it is a growing industry and is predicted to continue to grow.

Figure 5 (Stastista,2023).

DIVERSITY & INCULSIVITY

In today’s fashion industry, diversity and inclusivity are becoming increasingly important themes. with “59% of consumers say it’s important that the companies they buy from actively promote diversity and inclusion”(warc,2023) .These themes must be reflected within a brand’s culture and workspace, as well as in its marketing: To remain relevant and meet the changing demands of consumers, fashion brands must embrace diversity and exclusivity. Diverse and inclusive perspectives can often be confused “D&I refers to developing an inclusive culture within your workspace, inclusive marketing refers to what you do to remove exclusion through marketing efforts”.(insight,2021).

‘41% of consumers agree that fashion brands are only truly representative if they have a diverse and inclusive leadership team/executive board (Ceron 2022). Adding diverse perspectives to a brand’s team and creating campaigns that are representative of everyone. There are many key differences between diversity and inclusion “ Diversity is the “what”; inclusion is the “how.” Diversity focuses on the makeup of your workforce — demographics such as gender, race/ethnicity, age, sexual orientation, veteran status, just to name a few, and inclusion is a measure of culture that enables diversity to thrive” (Campbell,2021).

In the fashion industry and its marketing, customers are placing a greater emphasis on diversity and inclusivity and according to a "survey by Adobe, 38% of respondents said they are more likely to consume products and services from brands that show diversity in their ads, and 34% have boycotted a company or brand at least once because they don’t feel their identities were represented in the companies’ advertisements or actions"(cury,2022). Consumers are taking measures 'With 64% of consumers surveyed said they took some sort of action after seeing an ad they considered to be diverse or inclusive" ( Zalis,2019)Figure 6 illustrates the lack of identity represented in ads across several different backgrounds and the resultant loss of consumers. In the following pages, will explore some of the major themes in diversity and inclusion, such as gender, age, and disability.

(MARKETING CHARTS,2019).

There is a need to improve fashion and beauty's representation of the LGBTQ community and gender identity."Gender is a primary dimension that continues to evolve as understanding grows"(coachdiverty,2021) consumer behavior continues to shift. In the fashion industry, there has been a recent move toward 'degendering' products, which means creating products that are not gendered and are for everyone. A growing market for genderless fashion has emerged "50 percent of Gen-Z globally have purchased fashion outside of their gender identity, and around 70 percent of consumers say they are interested in buying gender-fluid fashion in the future, with younger generations leading the way" (buisnessoffashion,2022).

Gender-neutral clothing has become increasingly popular with "52% of Generation Z and 48% of Millennials have already purchased fashion items outside of their gender identity" (Smith 2022).Brands that are seen to represent and support de -gender will be more popular with consumers showing "49 percent of students are more willing to purchase from a brand that showcases better gender representation and inclusivity in its marketing and advertising"(stone,2022). The emergence of genderless fashion and unisex alternatives has lead to in consumer shifts, first in perfumes and then cosmetics industry, as unisex scents have grown at a global 12% rate.(outlook,2022).

Big beauty brands like "Rhianna's Fenty Beauty is a successful beauty brand which has been praised for its inclusivity and gender-neutral products, this follows the brands mission statement of "beauty for all'. (Lees, E,2021). This cosmetics company use marketing inclusivity to showcase different genders using cosmetics and skin care, creating gender-inclusive adverstiment.

There are many activists for degender fashion with this trend "Singers like Harry Styles have become bolder with their fashion choices, and are slowly helping blur the lines between the two genders. Many A-list celebrities and fashion magazines have also adopted this trend, including Harry Styles, who wore a Gucci dress on the cover of Vogues December 2020 issue (Bowels 2020).

56 percent of Generation Z consumers shop “outside their assigned gendered”. (Anyanwu,2020).

DEGENDER

DISABILITY

71% of Gen-Z consumers like it when brands make mental health a part of their marketing and messaging. (Brown,2023).

Invisible Disability is a major issue in the fashion and beauty industries. With only” 20% of disabilities are visible while a considerable part of the population believes that “disability” primarily refers to wheelchair users”. (Fashionrevoultion,2022).

“42% of Gen Z Diagnosed With a Mental Health Condition” (writer,2022) also have an Anxiety about shopping. Nearly half (49%) of Gen-Z shoppers say in-store shopping makes them feel anxious. (Skeldon,2022). Statistics show that people in the fashion industry are 25% more likely to experience mental illness, due to its fast pace and demand for the high standards (Fashionrevoultion,2022).

Fashion and beauty brands are begin to tap in and Brands are emerging with products and technologies specifically geared towards improving mental health.

“The Museum of peace and quiet spreads mental health awareness through its minimalist designs. This contemporary brand promotes calmness and tranquillity through visually appealing and minimal aesthetics These safe environment offers an earth-friendly theme; “it aims to promote a clear state of mind through simplistic designs of all your favourite items so you can shop without stress” . (Lope,2022).

Selena Gomez’s Rare Beauty made mental health a pillar of its launch, reinforcing the openness with which Gomez has brought to her own personal struggles. It created the Rare Impact Fund, which plans to raise $100 million over the next 10 years to support nonprofit organizations and strategic initiatives that help bridge access to mental health services in underserved communities. One percent of every purchase goes to the Fund(cyk,2021).

Boohoo launched a social media campaign that included a series of open, honest conversations with Instagram influencers about challenges they’ve experienced and ways they’ve addressed their mental health. (Lope,2022).

70% of middleaged women still feel ignored by the high street and the fashion industry (Graffland,2021).

A ageism is another issue in diversity and inclusivity in the fashion industry. Yet these discussions tend to rarely extended to include the lack of age varied representation, particularly the older generation. The older generation feel ignored and feel a lack representation, although there could be a gap in the market for this. Brands such as ‘Rival Clothing’, ‘Classic Clothing’ and ‘Very’ have targeted collections towards older audiences. but they are generally seen less in the more well known brands advertising campaigns. “heavily catered towards the younger generation. Teenagers to young adults seem to be the main target audience, yet people over 50 years old are still active shoppers within the industry”.(Taylor,2021).

By not appealing to the older generation brands are missing out on a demographic with high spending power, “consumers over 50 now account for more than half of all spending”.(visa,2021).

Figure 6 highlights that older generations ‘Baby boomers’ will have the highest spending plan in the future, which reveals that brands will gain from appealing to this generation given that they have the most money to spend.

AGEISM

Brands continue to neglect elderly consumers as a potential consumer category, assuming they aren't interested or won't respond to marketing initiatives. Older people are still increasing their spending on clothes and “By 2040, people aged 50 and over are expected to be this sector's key consumer “despite being ignored by brands(hill,2020).

It is proven that a share of those 65 and older who are tech users has grown in the past decade With 86% use a smartphone (Favourio,2022). This demonstrates that they are aware of marketing and advertising. Brands who wish to reach the elder demographic might do so by advertising on platforms that they utilise. “Facebook was most popular among older social media users – 91% of social media users aged 65+ had a Facebook profile and 83% considered it to be their main social media account.” (dmt,2022). Fashion companies could market to the elder society by including people their own age in their marketing materials.

These issues are starting to be addressed by brands “Everlane offers sleek, affordable wardrobe essentials. With stylish, polished, comfy, chic pieces that everyone should own, Everlane has something for everyone. It is also proud of its commitment to producing clothing in ethical factories. Moreover, it has a radical sense of transparency, producing clothes that will last. (Baxter,2022). Appearances of older generation in there marketing even fashion shows ‘AI-Generated Art Imagines a Fabulous Fashion Show Featuring Only Senior Models - Fashion Show for Elders as a way to satisfy multiple interests, one of them being clothing’(barnes,2023).

It is apparent that fashion brands are making initiatives to stay on theme, but Beauty brands are leasing the way in this segment with skin care technology and ageing they have found a way to attract the older consumer. “In 2019, L’Oréal partnered with Vogue UK on creating an entire issue for women 50 and over, ironically titled the “Non-Issue.” It featured Jane Fonda on the cover and included content to inspire, celebrate, and empower women of advanced age. The beauty giant has also enlisted brand ambassadors of all ages, including Helen Mirren, Andie Macdowell, and Céline Dion, among others. They even created The Age Perfect makeup line, which is made of moisturizing formulas made specifically for mature skin”(Trejo,2022).

Figure 6 (Visa,2021).

CRYPTO FASHION

Crypto fashion embraces all of the many forms of digital fashion employed in the fashion industry, such as the metaverse, gaming, virtual try on, and virtual store. The virtual goods industry is growing showing “79% of consumers active on the metaverse have made a purchase” With survey of more than 1,000 consumers shows that there is real money to be made in virtual-reality worlds. Consumers, on average, already spend more than $200 annually on digital assets, with 30 percent of those funds going toward items such as digital media and nonfungible tokens.( (mckinsey,2023). With also consumer prediction that expected spending increase annual on digital products.

The metaverse strives to push more virtual products as well as experiences for fashion brands.“95 percent of business leaders expect the metaverse to have a positive impact on their industry within five to ten years, and 61 percent expect it to change the way their industry operates.

various engagement strategies give the opportunity for brands to reach sales of physical goods and sell digital versions to the meter verse (Mkisney,2022). These new, immersive virtual environments have an ability to give an innovative approach to remaining relevant to current consumers while attracting new ones. Different fashion market levels are already demonstrating touching the meterverse. With the likes of fashion virtual run ways and digital collections.

Interview:

Marie Bastian (She/Her) CEO&Founder of WORLD OF MESH

Q. “So, Marie, tell me a little bit about yourself and your background”.

A. "My name is Marie Bastian, and I am the CEO and founder of World of Mesh... World of Mesh is a 3D digital fashion agency that serves the international market. We assist brands in transitioning from old processes and two design techniques to cutting-edge 3D design, and we assist them by building collections in 3D software. If they lack such knowledge and expertise, they will be selected."(Bastian,2023),

Q.” Do you know why digital fashion is the future of industry for you, and why is it so important? What makes it the next thing?”

“I believe it is this new layer of digital goods that we are introducing to our market right now, and it will undoubtedly offer numerous benefits to this industry. Of course, there is the issue of sustainability. So, we’re moving forward and deleting a lot of samples that aren’t required; all that waste, time, and money is unnecessary. Because the physical limits of our world do not apply to the digital realm, you can go so much further, and I see more and more creatives experimenting with this. I also like the new ideas that are emerging. Then there’s the virtual reality and gaming environment, which is providing a new experience for the customer”. (Bastian,2023),

Q. “How will the Metaverse take off”.

A. “Google glasses- for example. Things that are very accessible and enable seamless interactions in our daily lives. I believe it is undoubtedly the future since the virtual reality trend that we are currently seeing adds so many benefits and value to our daily lives. I believe it’s the best thing possible.” (Bastian,2023),

VIRTUAL STORES

In virtual stores, connected technologies bridge the gap between in-store and digital experiences. Virtual stores — three-dimensional, navigable, branded spaces — are maturing beyond digital replicas of physical locations. Now, they are being designed to offer the best of both the physical and virtual worlds, turning into a third mode of shopping that resembles neither stores nor websites.(Mcdowell,2021).

Through virtual stores, users can browse a digital store from their phones or computers: Making it more accessible for consumers online; "They can make the experience more pleasant, more personalized and more exciting". (schwartz,2022). Virtual platform allows customers to shop immediately, adding products to their cart without leaving the livestream shopping experience, creating a frictionless journey that lets them stay in the moment without missing out on a purchase.(cutaia,2022). This type of online space enables brands to combine the best aspects of in-store and online shopping;it’s a store that borrows elements from virtual experiences to provide a more connected and captivating experience

The popularity of virtual stores among consumers is growing particularly in the generation of gen z; nearly 75% of gen Z shoppers have purchased a digital item and 70% of the respondents who said they had visited a future store also said that they had made a purchase (Wright,2022). Although virtual stores have shown that gen Z is interested, other generations have also demonstrated interest, including millennials (ages 25-40), gen Xers (ages 41-56) and baby boomers/silvers (age 57 and older). (Wright,2022).

In figure 7 demonstrates a virtual version of a pop space in collaboration with a beauty store boots & Kylie cometics. Kylie jenner parnter with boots to create 'Kylie Virtual World' to act as virtual store for kylie cmake up collection boots store. This bespoke online shoppable augmented reality (AR) experience that enables customers to explore, virtually try on and buy Kylie cosmetics products on their smartphone via the Boots checkout system in one swipe(seipp,2022. Its a seamless mobile shopping experiences that combine play and purchase into one smooth interface. This virtual store has proven the success of virtual stores and with move reflecting the growing demand for mobile-optimized shopping by consumers " Boots reported a fivefold increase in purchase intent in comparison to average UK e-commerce. To date, Kylie Virtual World has seen over 25.5K unique visitors, 10% of which added products to their carts"(seipp,2022)

(FiNUMERO,2021),

(BRIEF.PL,2022).

“Consumers perceive virtual shopping to be a “highly engaging” experience: approximately 70% of the respondents who said they had visited a future store also said that they had made a

VIRTUAL TRY ON

By using augmented reality, virtual try-on allows you to digitally try on clothing. "Augmented Reality provides a real-world experience as an overlay- The technology can recreate a realistic environments by layering videos, images, and 3D content on top of real-world objects".(Johnson,2022). A variety of virtual try-on formats exist, from in-store augmented reality mirrors to digital apps. In addition to virtual clothes, try-ons are a major component of the growing digital fashion world; it's predicted that the "Metaverse fashion market to grow 6.61 billion dollars, led by brands entering digital platforms"(doughglass,2022).

As fashion brands seek sustainable ways to present, promote, and sell products, augmented reality is becoming more and more appealing and also make a brand more appealing by “skip the sampling part of the garment making process entirely, thus considerably reducing fabric and paper wastage”. (ramesh,2022).

Giving customers the opportunity to "try on" clothing virtually before purchasing it. Customers can try clothes on themselves or an avatar and see how they fit. The method eliminates the challenges associated with conventional e-commerce sales channels, such as fit issues and costs associated with returns(Barrera,2022). "Over-purchasing contributes significantly to the $800m in returns faced by the e-commerce apparel industry each year, with 19% of online shoppers admitting to purchasing multiple versions of the same item to find the right fit,"(3dlook,2022). Providing AR Clothing virtual try-ons can be beneficial to brands. By using AR clothing try on technology, customers can visualize themselves in a variety of styles and sizes before making a purchase, thereby reducing costly return rates.

(MCQUARRIE,L,2022).

Global spending on virtual goods reached an estimated $110 billion in 2021, more than doubling the total in 2015, with around 30 percent attributed to virtual fashion(bof team, mckinsey & company,2022).

H&m is a brand that has expirenmental with visual try ons viva online platfroms "H&M has rolled out augmented reality (AR) try-on experiences with Snap, available now in the H&M app and Snapchat app". (Hu,2022). Powered by Snap’s camera technology, the lenses allow users to select an outfit, strike a pose, and share their favourite digital looks.The AR experiences, which use Snap’s cross-platform Camera Kit to build AR into H&M's mobile app, launched on 5 December and have been co-designed by H&M and London-based digital studio the Institute of Digital Fashion. The example shown here illustrates how Augmented reality is a great tool for brands a new incredibly immersive and accessible way to engage into the community of the digital fashion world.

(TFL,2023).

H&m AR virtual clothing on snapchat

A virtual influencer is a computer-generated character created with the help of 3-D modeling software. These characters are optimized to look like humans, move like humans, and behave like humans. "Social media, as part of the online world, has been a landscape where human to robot interactions are evolving at a rapid pace a plave where they promote products and interact with customers".(Haider,2023). Virtual influencers, however, also allow brands to maintain complete creative control over their projects and are also allowing brands to connect to Gen Z audiences. These characters have been used to engage a younger audience who have " grown up in the technological world, and are far more familiar with the use of avatars than other generations". (Haider,2023). Influencers like Miquela who has 6.3 million followers on instagram.

“150 virtual influencers on social media today” and According to the vitural world well known Lil miquela is now the most Powerful virtual influencer working with some of the biggesr brands , which includes fendi, off white and prada. The green virtual awards where she wore off-white global seraches fro the brand jumped 68% monnth to month (lyst,2022). and recent feactures of her in Euphoria magaizines has sent searches for the puffer jacket rising 43%.

Virtual influencers can attract millions of followers on social media, offering brands wonderful opportunities to reach younger consumers. Virtual characters won’t replace human content creators at any point in time, but will complement influencer marketing and offer brands a nice entry point into the metaverse.

LIL MIQUELA, 2.8 MILLION FOLLOWER (LYST2022).

LUXURY COLLABRATIONS

“2023 has got off to an extremely promising start when it comes to new fashion collabs. This season, fashion, art and jewellery collide in a series of partnerships that are as colourful as they are covetable”. (Cooper,2023).In the fashion industry, collaborations occur when a number of different companies or creators work together in developing collection or a product. These partnerships are usually highly anticipated and can capture the interests of a lot of fashionistas since they combine the unique styles and aesthetics of numerous designers or companies. From a single limited-edition piece to a whole collection of apparel and accessories, fashion collaborations may take many different forms. 2023 has already seen big collabrations “From the playful, polka-dot inspired pairing of Louis Vuitton and artist Yayoi Kusama to the much-talked-about Tiffany & Co spin on Nike’s classic Air Force 1 “(Cooper,2023).

“The second-hand luxury goods market has grown by a whopping 65% between 2017 and 2021”(pribadi,2022). growing 5 times faster than new luxury sales. As luxury collaboration sales grows so does the need to rent. Buisness are becoming smarter Utilising the widespread trend of renting, LOANHOOD has developed an app that combines features from social networking and rental marketplaces. The app enables users to submit an image of the item they want to loan to people along with a price, after which other users can look for and rent products, offering people to purchase clothing for a small percentage of the retail cost. By giving unwanted clothing a purpose and providing an alternative to a possible one-time purchase, renting is an effective way to encourage more sustainability in the fashion industry.

Luxury brands are already ahead and Department store Selfridges is a highend retailer that has entered the rental sector. In order to encourage consumers to use things longer and reduce waste, Selfridges launched their own rental business called ‘Reselfridges’, which enables clients to sell their previously cherished bags in return for shop credit (Reselfridges 2023).

RENTAL

GUCCI X ROBLOX

Another of example of collaboration which luxury brands are taking part in is game collaboration, which requires the creation of a digital clothing collection being worn by avatars.

Games are a successful way for luxury brands to reach audiences “Globally, there are approximately 3.09 billion active video game players” and That figure has risen by over 1 billion in just seven years (that’s a 32% increase).(Howath,2023). Collaborations are thriving; with Luxury house Gucci made an unexpected appearance on Roblox, in the form of a virtual garden as part of the game’s digital world. The activation was inspired by the house’s creative vision, designed as an exhibition with different rooms to explore. On entrance, players’ avatars were transformed into neutral mannequins that adjusted according to the room they entered, allowing for a totally unique experience per user.(doughglass,2023).

Along the experience players also had the opportunity to purchase virtual Gucci products ingame. Items included in the collaboration gained immense popularity, with one digital bag selling for 4,115 dollars on the platform, almost 1,000 dollars more than its original, physical value. Success within the collaboration has shown that Gucci bag has sold in 'Roblox' for more than it’s worth in real life, netting $4,115.(Nelson,2022).

It is evident that luxury brands are adopting the metaverse as an alternative way of bringing in revenue while connecting with customers who might not otherwise be able to buy their products. Fashion brands who have touched into the gaming industry have shown that consumers are willing to pay money to modify the appearance of their characters, especially if the item is from a company they value in real life. They have demonstrated that incorporating video games to sell themselves attracts in both a virtual and physical audience.

(WWD,2022).

“67 percent of Generation Z respondents stated that they had purchased luxury items from

(WWD,2022).

(WWD,2022).

(GIVENCHY,2022).

IN 2021 the walt disney comapany holds firms to its position as the world’s largest licensing business with Retail Sales 2021: $56.2B consumer products worldwide.

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'Total revenue for licensed consumer products at retail reported by the 88 licensors featured accounts for $260.8 billion, with 40 of those brand licensors bringing in at least $1 billion individually' Lisenign and content sales is disney 5th largest stream of revenue. The startcis suggest that they are an ideal brand for luxury b rands to collabrate with to have the greatest reach. Similarly to any type of brand collaboration, a disney collaboration will increase the brand's popularity by reaching new markets and audiences. "Disney adult which is someone who loves Disney as much as kids and often, usually own lots of Disney merchandise"(Mcomber,2021).

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Creating unique pieces with Disney allows luxury brands to differentiate their products from their usual offerings.

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“Disney report ed $56.2 billion in retails sales in 2021” (license global 2022).

DISNEY X GIVENCHY

Disney is well known for there big collabration with luxury end brands. Givenchy is a luxury brand that has had serval cxollabrations with disney one of there biggest collabrations was capsule collection in 2022 starring Oswald the Lucky Rabbit in celbratiom of 100 years of disney. The collection feacturted Essential pieces for women include emblematic bags and ready-to-wear pieces with Oswald the Lucky Rabbit offering a flower to his sweetheart, Ortensia. Multi-colored motifs on a jean jacket with Givenchy lettering and an emblematic 4G logo(Snow,2022). By using all forms of commerce platforms, the brand created a successful marketing campaign to promote this- a short video clip bring the campaign to life in a mixed reality short produced in collaboration with both Walt Disney Animation Studios and art director and photographer Julian Klincewicz.(Snow,2022)

To create even more innovation in there marketing they launched a 'snapchat fun' for cosnumer to continue there celebrations; "Fans can join in the fun on Snapchat with the Oswald Sky Painter AR lens, which allows users to paint the sky with paint, stencils and passport stamps highlighting the 5 cities of Oswald’s Givenchy journey". (snow,2022). Furthermore, they confirmed that a link to the Givenchy website will make the lens shoppable.Making an exciting seamless experience for consumer to shop these products. The success of collaboration demonstrated that it attracted a variety of groups, from baby boomers to Gen Z, internationally.

(GIVENCHY,2022).

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