Blurred Realities: Reimagining Identity, Space, and Experience

Trend 1: Exploring Digital Identities in Gamified Environments

In a digital-first culture, avatars are no longer mere playthings—they’re potent expressions of identity. Fashion and beauty brands are meeting this shift head-on, using gamified platforms to create spaces where self-expression feels limitless.

Take Gucci, for example, whose digital fashion experiences on platforms like Roblox and Zepeto have driven millions of virtual product try-ons. Here, users don’t just try clothes—they embody new versions of themselves. It’s fashion without constraints, filtered through creativity and curiosity.

Coach’s recent collaboration with Zepeto is another vivid example. Through interactive storytelling and hyper-stylised 3D items, the brand gave users not just a lookbook but a playground of expression—generating meaningful engagement from a younger, digitally native audience.

Key Takeaway: In digital spaces, identity is fluid. Brands that enable play and expression become collaborators in their audience’s self-discovery.

Trend 2. Extrapolating Brand DNA Through Virtual Pop-Ups
Brand storytelling doesn’t stop at the physical store. In fact, for Fiorucci, it starts there and stretches outward—into new, interactive dimensions. Their recent virtual pop-up, layered atop their historic Milanese store via augmented reality, is a case in point. Users can access three virtual rooms with editorial content, style archives and a limited edition capsule collection that lets users engage with Fiorucci’s distinct design language.

This blending of space, time and technology allows the brand to stay true to its DNA while reinterpreting it for a new, digitally curious audience. The result? An experience that’s not just innovative, but deeply rooted in authenticity.

While virtual pop-ups offer an expanded canvas for creativity, their impact is amplified when connected to a real-world presence. Physical spaces still hold cultural weight—acting as anchors of authenticity where digital extensions can deepen, rather than replace, brand storytelling.

Key Takeaway: Virtual doesn’t mean void. When done right, digital spaces can amplify—not dilute—brand values.

Trend 3: Blending Real and Unreal to Drive Product Discovery

What do you get when you mix hyperreal CGI, creative storytelling and a touch of surrealism? Brand hype and virality. Luxury and beauty brands are leaning into the ‘unreal’ to capture attention in an oversaturated scroll economy.

CGI campaigns transform physical environments into cinematic playgrounds, merging familiar cityscapes with larger-than-life visuals. These campaigns are more than just eye candy—they’re sparking curiosity, conversation and ultimately, driving product discovery and conversion.
 

That said, virality without grounding risks becoming noise. The most successful campaigns are those that link back to real-world experiences: pop-ups, product drops, or even just an excuse to walk into a store and feel the product IRL.

Hyperrealistic campaigns may spark attention, but physical environments are where trust is built and product experiences become tangible. In a world of endless scrolls, in-store moments offer a tactile, sensory layer that digital alone can’t replicate, making them critical in converting intrigue into intent.

Key Takeaway: If you’re keeping it unreal online, make sure there’s a real-world anchor. Scrolling might stop at the surreal, but loyalty builds in the tangible.

Trend 4: Selling Products in Virtual Environments
The metaverse and gaming may not be the buzzword it once was—but don’t confuse silence for stillness. Luxury brands are doubling down on virtual commerce, finding real value in environments once dismissed as niche.
 

According to GEEIQ’s State of Brands in Gaming & Virtual Worlds report, Versace recently sold 200 virtual handbags in six minutes through Zepeto. Yes, you read that right. Six minutes. This isn’t just about novelty—it’s a shift in purchasing behaviour driven by the desire for exclusivity, collectability, and cultural cachet.

Whether or not gaming is “dead” (spoiler: it’s not), it remains one of the most dynamic ecosystems for brand experimentation. Brands willing to adapt by offering functional, expressive digital goods, are the ones who’ll thrive beyond the hype cycle.

Key Takeaway: Selling in virtual spaces isn’t the future—it’s the now. Success lies in blending scarcity, story, and utility.

Trend 5: Creating World-Building Portals in Physical Spaces
As digital continues to evolve, physical environments are being reimagined not as endpoints but as gateways into immersive worlds. Netflix House, launching in 2025, aims to bring fan-favourite shows into the physical realm, complete with sensory-driven experiences, themed environments and exclusive merchandise. It’s a living, breathing, narrative-led universe.

Gensler’s Immersive Industry Report 2025 further underscores this momentum. According to the report, 67% of consumers are more likely to engage with a brand that offers an “immersive, story-driven retail experience.”

World-building isn’t just for fantasy fiction anymore—it’s a retail imperative across both physical and digital spaces. Stepping into a curated environment invites a level of immersion and presence that screens can’t fully deliver by helping brands foster more meaningful, memorable connections with their audiences.

Key Takeaway: Physical isn’t static. It’s a portal—and the most exciting journeys are just beginning.