London Fashion Week kicks off this Friday (12 June 2020), but this year it will take on a very different look. There will be no #FROW; no photographer’s pit; and no VIPs hurrying from venue to venue. This is because, for the very first time, LFW will be an entirely digital event and we can’t wait to see the result!
Talking of digital – in an industry known for pushing boundaries, being creative and embracing the new – fashion’s new fixation with gaming is perhaps a natural development. We’ve already seen the likes of Animal Crossing (which allows players to dress their avatars in Prada and Off-White garments), Ratberry (by Burberry) and Gucci Arcade take the “Lux x Gaming” world by storm this year, creating an unlikely demographic of new gamers. It’s fair to say gaming is no longer the hobby of sweaty teenagers sat in dark rooms – gaming is now fashion and, unsurprisingly, big business.
In this Part 1 of our “Lux x Gaming” series for TCLS, we want to touch on the power of new partnerships emerging between luxury brands and well-established video game developers.
Take Louis Vuitton x League of Legends – the Paris fashion house announced its official partnership with the video game back in September 2019. Developed and published by Riot Games, ‘LoL’ is a powerhouse title in the word of professional esports, boasting more than 111 million players worldwide. The partnership has seen Riot Games release official Louis Vuitton in-game ‘skins’ (designed by Nicolas Ghesquière), which can be purchased by players for around $10. In turn, Louis Vuitton released a December collection branded “LVxLOL”, featuring a $5,000 League of Legends branded leather jacket.
Lux brand tie-ups in this space are not new – in fact, they can be traced back as far as 2012 when Prada paved the way by launching its new collection modelled by characters from the Final Fantasy video game series. Fast forward to now and we see partnerships like Moschino x Sims. The Italian luxury designer announced a Sims-inspired capsule collection in April 2019, including pixelated prints, Plumbob accessories and a “Freezer Bunny” hoodie (referencing The Sims’ recurring hidden character).
Arcade games aren’t the only thing Gucci have been doing in this space either. The brand announced its “gucci x genies” partnership with the popular avatar game, becoming the app’s exclusive provider of high-end accessories and clothing. In the game much loved by celebrities and influencers, players can kit their Genies out with over 200 items from the Italian label’s real world collection (it’s estimated as much as 65% of the app’s users have their Genies wearing digital Gucci products).
This can be an especially lucrative arrangement for the game developers themselves. Collaborations like these bring a touch of real-world authenticity to the digital realm, providing gamers with an opportunity to add the luxury brand to their digital personality – often for a price. The popularised “freemium” revenue model for games (allowing players to download the game for free initially, with the option of purchasing cosmetic add-ons, skins or outfits within the game) has made luxury brand tie-ups all the more profitable for developers who enjoy increased in-game sales.
Alternatively, some games allow players to buy ‘virtual currency’ with real money, which can then be used to make similar in-game purchases. As of November 2019, Swatch (owner of the Tissot brand) announced 113,309 Tissot watches had been “purchased” virtually in NBA 2K20 by gamers looking to add a luxury watch to their basketball character’s wrist. Game developers benefit from a surge in demand for the virtual currency, whilst the brand reaps the rewards of a powerful marketing tool and increased brand exposure. A clear win-win.
A little gimmicky? We’ll leave you to decide, but it’s certainly hard to argue against the trends. In a world where we are never more than an arm’s length away from our smart phone and are all, multiple times a day, seeking new digital content highs, gaming is a platform which delivers ultimate audience engagement. Indeed, today’s young gaming audience is tomorrow’s luxury fashion customer base, meaning lux brands have everything to lose by not gamifying. Now more than ever, lux brands need to continue to think outside of the box.
As commercial and IP lawyers, we regularly advise on brand partnerships and tie-ups – from traditional sponsorships to in-game collabs. Like all successful brand partnerships, both parties really do need to be true “partners” to get the best out of the relationship. For brands looking to partner in the games space, here are 3 basic tips:
- Pick your gaming partner carefully (think about what works well with your brand, aligns with your values and suits the expectations of your customers);
- Set clear objectives and measurable metrics (this needs to be a combination between revenue and marketing awareness); and
- Carefully document your deal (we would say this of course, but a lawyer really is your friend when it comes to brand partnerships contracts).
IP is at the heart of both the lux and gaming businesses and it’s important to have clear do’s and don’ts regarding its use, establish who owns what and also think ahead about what the tie-up might mean for future deals/future collections (is it exclusive?) as you ride the new content wave.
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Authored by Alan Hunt (Managing Associate, Lewis Silkin) and JJ Shaw (Associate, Lewis Silkin).
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