Why Tommy Hilfiger’s CEO Believes Metaverse Fashion Week Added Value To The Business

Tommy Hilfiger joined the Metaverse Fashion Week conversation with a pop-up virtual retail space in Decentraland. Visiting avatars were met with floating 3D incarnations of physical merchandise, something which, in the real world, is more of a runway novelty than standard practice in visual merchandising.

“Our digital foundation was in a great place, and we were able to evolve from there,” said Martijn Hagman, CEO, of Tommy Hilfiger Global and PVH
PVH
Europe. “So far, consumers are showing an appetite for these interactions, and we are committed to being relevant on their journey.”

When it comes to digital retail, Hilfiger has long operated at the forefront of innovation. The American powerhouse brand owned by parent, PVH Corp., has been hosting public facing, see now, buy now, fashion shows with shoppable livestreams and integrated AR technology since 2016.

It first entered the Metaverse via the gaming space, creating a Tommy Hilfiger Island community within Animal Crossing in 2020.

Most recently, in December 2021, it partnered with Roblox community creators who reinterpreted some of the brand’s signature pieces. The resulting collection of 30 digital wearables was available for players to purchase for their avatars to wear within the Roblox gaming universe.

The Metaverse, the internet’s more spatial evolution, to put it in lay terms, is fragmented, consisting of many different types of platform so brands are currently exploring the diverse possibilities offered by each.

Metaverse Fashion Week’s Decentraland location differs from aforementioned platforms in that it is blockchain based so, among other things, it allows for NFT integration and ownership of land.

“This is indeed about testing and learning. The beauty of virtual environments is that on both product and VM sides we can try new things.” said Hagman. “We are experimenting with how these elements and environments can co-exist to provide a seamless consumer journey, for example, a fully digital experience, or selling physical products in the virtual environment and vice versa. These learnings will allow us to enhance future activations and to evolve our digital ecosystem.”

The NFTs on offer at Tommy Hilfiger’s Decentraland (DCL) Metaverse Fashion Week pop-up were directly redeemable for limited edition physical product from Hilfiger’s Spring 2022 collection. Such an exchange was made possible by Boson Protocol enabling technology.

Also on sale were DCL specific wearables for avatars, Only 30 of these were made, rendering them ultra collectable affairs, especially in view of their democratic price tag — 20 Mana (the DCL currency) apiece which is approximately $50. The price points of other luxury brands operating within the space were generally higher.

Corresponding via email, Hagman discussed the Tommy Hilfiger Web 3.0 strategy and how its Metaverse presence will add value to the brand from the perspective of retailer and consumer alike.

Why was taking a phygital 360 approach important to you in Metaverse Fashion Week?

Martijn Hagman: More and more we are seeing the acceleration of this merger between digital and physical worlds. The unknowns of the Metaverse are exciting and are pushing brands to break barriers between digital and physical, leading the industry to step into a new era of commerce that consumers are enthusiastic about. Some of our digital programs like Digital Selling Tools, 3D design, VR, and AI experiences in stores; gave us a strong entry point for exploring the phygital approach.

Do you envisage Web 3.0 as an important new revenue channel for the business?

Hagman: The Metaverse is a new revenue stream that we are currently testing, as we continue to learn and understand what it means for us. It is here to stay and is an essential part of our consumer journey on how they experience our brand and interact with it. We are in the process of defining our Metaverse strategy. It is becoming clear digital-only products and revenues from physical products in virtual worlds, will become significant in the mid to long-term.

In what other areas do you imagine Web 3.0 adding value for retail?

Hagman: The trend we see now is that digital, over time, will become the leading dimension for everything we do. Particularly in retail, opening opportunities to cater to consumers’ specific desires; think of personalization, on-demand, immediate gratification, and the list goes on.

Are you already seeing an impact on customer acquisition from Metaverse Fashion Week?

Hagman: Even though the crypto world is anonymous, one thing we know is that Metaverse Fashion Week opened the door to new consumers. It also allowed us to meet current ones in new ways. We are constantly innovating how we engage and immerse the next generation into our brand, and we are committed to being where our consumers are and meeting with them on their own terms.

Will the Metaverse facilitate a more sustainable future for retail?

Hagman: From a sustainability standpoint, the Metaverse is functioning as a catalyst for some important digital initiatives, while challenging our current ways of working. The virtual possibilities are shedding light on some of the current flaws in the global value chain and pushing brands to accelerate improvements — adding to our ambition of becoming a more sustainable company.

What represents your greatest challenge moving forward?

Hagman: Technology is on our side; we have been investing in innovations across the business to support our journey to Web 3.0. This is a completely new frontier for nearly all our business functions, it is not a matter of simply upskilling associates, this is about building and executing completely new business models.

The conversation has been edited and condensed for clarity.