Meta Platforms (META) CEO Mark Zuckerberg, who is famous for having a closet full of gray t-shirts and hoodies, wants to sell you virtual haute couture.
Since rebranding Facebook to Meta in October 2021, Zuckerberg has been on a mission to make sure his company is at the forefront of the still somewhat hazy concept known as the metaverse.
A combination of virtual reality, augmented reality and video, the metaverse refers to a new iteration of the internet that users move through with avatars. There is a lot of debate on whether this concept will fizzle out or explode like the internet did in the 1990s.
In the latest effort to build some buzz, Zuckerberg is betting people will pay real money to accessorize their avatars with a virtual Balenciaga sweater or Prada purse.
So What Does Fashion Have To Do With It?
Zuckerberg on June 17 took to Facebook to announce that Meta would have a virtual "Avatar Store" that will sell certain digital clothes.
"Digital goods will be an important way to express yourself in the metaverse and a big driver of the creative economy," Zuckerberg wrote on Facebook. "I'm excited to add more brands and bring this to VR soon too."
The "premium" options will feature brands like Kering's Balenciaga, Prada, and Thom Browne. (Users will still have a limited selection of free outfits available.)
Some of the clothes will mimic real items from these brands while others will be specially designed. The outfits will cost between $2.99 and $8.99.
While this can feel like a lot to spend for an online outfit, real versions of these items cost a whole lot more. For instance, a Balenciaga men's logo sweater currently sells for $1,290 while a Prada Galleria Saffiano tote bag commands $3,600.
For fashionistas, the designs will be a way to wear these ultra-luxury pieces without forking over thousands of dollars.
Would You Wear Virtual Clothes?
To promote the new line, Zuckerberg and Instagram Director of Fashion Partnerships Eva Chen posted a "virtual fashion show" in which their avatars show off some of the clothes that will be available in the store on Instagram.
"Eva Chen and I tried out some of the new looks from Balenciaga, Prada, and Thom Browne – a change of pace from my terrycloth sweater," Zuckerberg wrote.
The goal, Chen and Zuckerberg also said, is to eventually build a store in which different designers and developers can add their own avatar clothing in the same way that anyone can currently put up an iOS app for others to download.
While recent Morning Consult polling found that only 36% of American adults are currently interested in the metaverse, companies are nonetheless seizing on what is quickly becoming a new marketing opportunity.
Brands from Chipotle (CMG) and Wendy's (WEN) to Nike (NKE) and Adidas (ADDDF) have all recently made an early metaverse foray with everything from a space where some can play virtual basketball to codes that can be used to get real-world discounts.
"I think it’s very easy to get caught up in the hype of the metaverse, but what does it really mean in terms of cash flows to businesses at the end of the day?" Fidelity Investments portfolio manager Sonu Kalra recently asked in a December article for the Wall Street Journal.
