Immersive Luxury Branding: Exploring Consumer and Brand Dynamics in the Metaverse Through the <scp>AIDA</scp> Framework

ABSTRACT The Metaverse has become a prominent virtual platform for brand engagement. This study investigates the factors that drive engagement with the Metaverse luxury fashion brands, applying the Attention, Interest, Desire and Action (AIDA) model as a guiding framework. While the model has been applied in various digital marketing contexts, its application to the Metaverse, particularly for luxury fashion brands, remains underexplored. To address this gap, the study adopts a dual‐perspective qualitative design, drawing on interviews with 29 consumers and 18 luxury brand managers. This approach offers a dual perspective on the main factors attracting and co‐creating fashion brand experiences in the Metaverse. Findings indicate that the Metaverse serves dual purposes, encompassing both business and entertainment. At the initial attraction stage, both groups were drawn to the Metaverse's technological innovations, particularly AI personalisation solutions. At the interest stage, the virtual marketplace drives engagement. Furthermore, at the desire stage, consumers aspire to self‐expression, while managers pursue brand internationalisation. Finally, sustainability emerges as a shared priority, reflecting the demand for actionable, eco‐conscious practices in luxury retail. The study extends the AIDA model to the virtual environment and offers a structured approach that reveals the factors that enrich the Metaverse luxury retail experience. This research provides practical implications for luxury brands, marketers and platform developers aiming to employ the Metaverse as a transformative arena for developing engaging customer brand experiences.