Creating value within the Metaverse

In recent years, the Metaverse has gained considerable attention as the inevitable evolution of the internet, referring to a network of shared virtual environments integrating elements of both the digital and physical world. Fashion brands have begun exploring the Metaverse as a new marketing platform that is expected to cause substantial changes to their business models. However, there is currently limited academic research on the Metaverse’s impact on fashion brands’ business models, including value proposition, customer relationships and customer segments. To address this gap, this qualitative study employs expert interviews to learn how fashion brands can create value for their consumers within the Metaverse. Through a thematic analysis, this study offers fashion brands valuable insights on ways to alter their business models and preparing for the Metaverse as a new marketing platform. Some of the most substantial findings suggest fashion brands should begin looking into co-creating and building relationships with their consumers through online communities, targeting their consumers more personally by using AI to generate real-time data analytics, and potentially shift their customer segmentation to community segmentation, a term coined from expert interviews that will be explored further in this paper. Based on these empirical findings, this study provides scholars with a theoretical understanding of the business model canvas and the uses and gratifications theory regarding fashion brands and their consumers in the Metaverse. By expanding upon the existing theory, the results offer a first look at a potential consumer- facing business model surrounding customer segments, value propositions and customer relationships for fashion brands. Furthermore, building on the current uses and gratifications theory, the findings provide insights into the most significant hedonic, social and utilitarian gratifications fashion consumers seek to gain from the Metaverse, such as entertainment through gamified experiences and the opportunity for consumers to self-express themselves virtually through digital fashion.