Embracing the Luxury Paradox: New Luxury, Digitalization, and Digital Experiences in the Metaverse

The luxury industry currently encompasses several types of luxury, each aimed at different audiences with different consumption intentions. Although a paradox for luxury culture itself, the evolution of this industry has allowed traditional luxury, based on attributes such as elitism, conservatism, and materialism, to coexist with more accessible luxury, the new luxury, driven by progressiveness, individuality, and a preference for experiences. The concept of new luxury arises as a central tool for the sector’s survival in the digital age, where technology and accessible, personalized, and customized approaches have acquired significant importance in the preferences of younger consumers. Furthermore, due to the pandemic crisis and the growing emergence of new technologies, the luxury industry is increasingly embracing digitalization by designing phygital experiences or experiences set in digital media. Luxury entities are employing the metaverse and its inherent characteristics to explore alternative methods of interaction, developing immersive and exclusive experiences for contemporary consumers. This article uses a methodology based on the collection and analysis of scientific literature to investigate how luxury brands are approaching digital experiences, with a particular focus on the metaverse. It seeks to determine whether these brands are able to maintain the fundamental attributes of luxury, such as exclusivity and authenticity, in order to continue to be perceived as luxury.