Why Luxury brands love gaming?

Connectivity, Virtual Reality and AI have twisted and resized the gaming industry. This trend has not gone unnoticed by luxury brands: They are very aware of the potential of gaming to engage with a massive audience.

Last April, during the initial peak of coronavirus infections, concertgoers attended a concert headlined by rapper Travis Scott. They enjoyed hit songs, danced and even bought merch. Thankfully, they weren’t skipping the precaution guidelines; it was a virtual concert in Fortnite, attended by more than 12 million people!

Even before COVID19, games were on the way to becoming the next wave of social networks. 3D virtual spaces are increasingly being used to stay in touch alongside more traditional methods. My nine years old daughter plays online games like Roblox or Minecraft to spend time with friends after school. COVID19 is only accelerating this trend.

In just a few decades, online gaming has exploded in popularity to become a $150bn profitable, growing industry

This unstoppable force will continue to lead the industry of entertainment, with many factors fueling its success. The arrival of 5G technology is about to be one of those engines.

Targeting the Digital Generation

Who are heavy users for those online games? Digital generations are. And they represent a huge business opportunity. According to McKinsey & Company, Generation Z alone will account for 40% of total global consumers this 2020. For this generation, digital identity works as an extension of real life, blurring the lines between reality and games.

These factors are creating a new ecosystem where Fashion and Beauty brands can connect and engage with young consumers. What better platform than the virtual world to encourage thousands of gamers to revamp their avatar with beauty, clothing and accessories by top brands?

Nintendo released Animal Crossing: New Horizons on March. In just a few weeks, this game becomes a top seller with almost 11M units sold.  Parfums Givenchy partner with Nook Street Market to show beauty looks in the game. Other High-End brands such as Chanel, Prada, Gucci or Valentino partner also to bring selected fashion and accessories looks from their collection to the characters.

It is not the first time that fashion brands leverage on life simulation games to show off their apparel, open virtual boutiques or launch real-life capsules collections. Moschino launch early 2019 a fashion collection fully inspired by ‘The Sims’. The same year, Louis Vuitton develop a new collection of gaming clothes in collaboration with ‘League of Legends’.

Connecting and Engaging: visiting consumer touchpoints

Gaming offers luxury brands an exciting and effective new space to communicate. Due to the interactive nature of gaming, the audience is highly engaged with the content they are consuming. It means that, unlike in other mass media, gaming is somewhat unique in the level of attention a user gives.

Luxury brands are built around innovation, creativity and storytelling—the same attributes than virtual games.

Synergies look quite apparent.

Luxury and lifestyle Brands are seriously embracing this virtual ecosystem in search of digital consumers touchpoints. This trend is coming to stay, and how these aspirational brands protect their DNA and heritage while connecting with digital generations will be critical for their future.

Reading references