Can the Metaverse support sustainable business models in the fashion industry? - A literature-based analysis

Fashion is one of the most polluting industries globally. It triggers environmental and social issues such as the exploitation of cheap and forced labor, as well as excessive resource utilization. The exploration of sustainable business models based on the “Triple Bottom Line” (TBL) should represent an essential endeavour for entrepreneurs and stakeholders in fashion companies. In recent years, as in many other industries, the Metaverse has rapidly penetrated the fashion industry. Currently, fashion incumbents like Gucci, Burberry, Nike, Adidas, and Ralph Lauren are experimenting with this new technology. From a sustainability perspective, the Metaverse enabled Gucci, for example, to introduce “Gucci Virtual 25” sneakers, exclusively existing in the virtual world, offering young consumers access to luxury-fashion at more affordable prices while meeting their shopping needs, without causing environmental pollution and waste associated with physical products. Due to the potential of the Metaverse in supporting sustainability in fashion, we propose to address three research questions. First, is virtual fashion able to effectively support sustainability within the real-world fashion industry? Second, as virtual fashion gains traction, how can the Metaverse support it? Third, what are the business models that fashion companies can leverage in the context of the Metaverse? In other words, how can fashion companies monetize their offerings in the Metaverse? Thus, through a literature-based analysis, the paper aims to investigate the potential of the Metaverse in creating business models that support sustainability in real-world fashion.