Can virtual worlds finally fulfill their luxury promise?

Comprising virtual worlds, immersive stores, and shopping experiences, the global metaverse e-commerce market is expected to soar from $34.65 billion in 2023 to $936.28 billion by 2033, positioning it as a key growth area for brands. While many jumped onto the hype last year, 2024 has seen a considerable slowdown in brands harnessing the trend. That was until now; this week, two of beauty and luxury’s biggest retailers – Rimowa and Shiseido – unveiled their own virtual destinations designed to take audiences deeper into their brand universes. Can their endorsement of “metacommerce” reignite hype? In other news, Meta has launched its own AR-enabled sunglasses. After dipping its toes into the wearable tech world via a partnership with Ray-Ban, the conglomerate is now putting its own spin on hyper-intelligent gadgets. But can the product make a splash in an increasingly growing sector? Rimowa celebrates new bag drop with virtual destination What happened: Rimowa has launched an immersive virtual boutique to debut its latest release, The Original Bag, a sleek cross-body design. The 3D experience, constructed by virtual store developer Obsess, enables users to interact with the new bag, explore Rimowa’s heritage through videos and a historical timeline of iconic travel pieces, and shop the entire collection seamlessly. Shoppers can access the store via the brand’s official site, and navigate their way through the space using their mouse. The verdict: The virtual destination is the latest chapter in Rimowa’s growing digital playbook. Following its tie-up with digital fashion studio Rtfkt on phygital luggage in 2022, the brand has expanded into various virtual platforms, including teaming up with Tmall’s Luxury Pavilion on a metaverse experience for China’s 618 shopping festival. Rimowa’s latest venture reinforces the brand's digital luxury presence, but attracting high-end shoppers to virtual platforms remains a challenge. The lack of tactile engagement, coupled with potential technical issues like poor visuals or limited personalization, continues to dilute the exclusivity that luxury consumers expect. Shiseido unveils 4D immersive experience at Macy’s What happened: Beauty mogul Shiseido has unveiled The Essence of Enmei, a 4D immersive experience at Macy’s Herald Square from September 26 to 29, created with immersive tech company Xydrobe. The activation highlights the science behind Shiseido’s premium Future Solution LX line, featuring the rare enmei herb known for its regenerative properties. As part of the pop-up, visitors can immerse themselves in Japanese landscapes through visuals, scents, and sounds, reinforcing Shiseido’s blend of luxury and technology. The verdict: The new venture is part of a broader strategy to position Future Solution LX (Shiseido’s skincare range) in the luxury market, with future plans for VIP events, exclusive treatments, and curated influencer partnerships. As for this project, selecting Xydrobe to enable the experience is a savvy move; over the past year, the company has been the cog behind numerous luxury-standard virtual installations, including Dr Barbara Sturm, Manolo Blahnik, and Harrods. Shiseido’s embracement of emerging novelties like Xydrobe’s 4D pod positions the brand ahead of its competitors in the beauty race. Over the years, the brand has been a regular early adopter of new technologies, including NFTs and metaverse destinations. Meta debuts AR-powered sunglasses What happened: On Wednesday, Meta unveiled its debut augmented reality glasses prototype, five years after the company’s official announcement. Coined Orion, previously codenamed Project Nazare, the AR-enabled products uses holographic displays and contextual AI to proactively anticipate its wearers needs. The product is currently only available for use within the company and for some developers to build on, with founder Mark Zuckerberg noting that the glasses need to be more “fashionable” and “affordable” before hitting the market. The verdict: Described at the “North Star” for Meta, the product aims to combine the convenience and immediacy of wearables with a large display, “high-bandwidth input” in a form that people feel comfortable wearing in their daily lives. Meta’s previous partnership with Ray-Ban marked the tech giant’s entry into the smart wearables category. Now, the titan is striving to clinch the title of market leader in Big Tech by creating the smallest AR glasses form to date. As wearables gain momentum, Meta faces increasing competition — not just from Apple, but also from emerging startups like Humane and Rabbit, alongside more established names such as Qidi. After trailing Apple’s Vision Pro in the VR headset market, the question now is whether Meta’s upcoming AR eyewear can reclaim the firm's edge in the tech race. Meta Bites Sol3mates, Chalhoub Group's sneaker label, has appointed Val Kristopher as Creative Director ahead of the global re-launch of its first physical sneaker, SIROCCO 1, on September 25. The sneaker, designed by Kacimi Latamène, features NFC authentication and will debut at Level Shoes in Dubai before expanding to premium retailers worldwide. IP creative studio Doodles has teamed up with Spin Master to celebrate Rubik’s Cube’s 50th anniversary with a "pack ripping" fan experience offering digital collectibles and exclusive merchandise, including a chance to win a diamond-encrusted Rubik's Cube from Eliantte & Co. The collaboration also features a Rubik’s-themed digital comic and animated shorts. mmERCH has launched the Seedphrase Collection, featuring 322 one-of-a-kind hoodies inspired by Seedphrase’s CryptoPunk #8348, each accompanied by an NFT created by AI artist Claire Silver. Five "Ultra-luxe" hoodies, embellished with Swarovski crystals and Created Diamonds, will be auctioned by Christie's from September 25 to October 2, 2024.

Can virtual worlds finally fulfill their luxury promise?

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Published September 29, 2024

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Can virtual worlds finally fulfill their luxury promise?