Luxury in the Metaverse: A Digital Renaissance or a Fading Mirage?

Beyond Exclusivity - How the Metaverse might help in Redefining Luxury Engagement and Turning the Decline Tide. This paper explores the transformative impact of the Metaverse on the luxury industry, addressing whether it offers renewed value or represents a passing trend. Faced with shifting consumer expectations and market stagnation, luxury brands are testing Metaverse technologies to enhance engagement, storytelling, and brand differentiation. Drawing on the Value Creation Chain and luxury MarTech literature, the study presents a conceptual model based on 16 executive interviews. It identifies four key Metaverse features—sensory immersion, interactivity, digital assets, and co-creation—as catalysts for reinforcing traditional and emerging luxury attributes. Although promising, adoption hurdles persist, including technological costs and unclear ROI. The Metaverse holds potential to enhance brand equity, attract new audiences, and support long-term strategic goals, provided brands commit to readiness, robust infrastructure, and performance metrics. Ultimately, the paper argues that a phased, strategic approach to Metaverse adoption could secure luxury brands' competitive edge in the digital era.