Navigating the New Digital Frontier: An Analysis of Luxury Brand Strategies in the Metaverse

Abstract

This paper studies how luxury brands act in the metaverse. It utilizes a literature review and two semi-structured expert interviews. It details three stages of digital adoption: resistance, selective integration, and Web3 experiments. It explains how NFTs, virtual goods, and token-gated access create technical scarcity and visible status. It shows how young consumers use digital items to build identity and community. It also lists key risks: energy use, data privacy, and brand dilution. The findings outline key digital tools that help maintain core luxury values and point to unanswered questions about long-term brand equity and consumer behavior.