Virtual consumption in luxury brands: consumer purchase motivations of virtual luxury fashion in virtual worlds Open Access

The luxury fashion industry has increased its use of virtual marketplaces since 2020 (Joy et al., 2022). Demand for virtual luxury goods is expected to reach $50bn by 2030 as the industry’s interest in virtual marketplaces increases (BoF, 2021). The current wave of investments by numerous luxury brands in this sector, such as Gucci, Balenciaga, and Louis Vuitton, provides consumers with a diverse range of virtual products and services. The primary impetus driving luxury brands into the virtual marketplace is the desire to gain meaningful connections with their target audience, specifically Generation Z and Millennials (Langer, 2020). Born between 1981 and 2012, members of this demographic spend a considerable amount of time online, making them a key demographic of consumers in virtual worlds (VWs) (Joy et al., 2022).

VWs are computer-simulated environments inhabited and shaped by users who are often represented by virtual characters (Cowan and Ketron, 2019). The term encapsulates both social media or metaverse that uses virtual avatars (e.g. ZEPETO) (Kim and Lee, 2024) and video games (e.g. League of Legends) (Kim et al., 2023). In these virtual environments, virtual luxury fashion (VLF) represents virtual items imbued with distinctive luxury signals, such as logos, iconic colours, and patterns (Joy et al., 2022). This intersection of luxury brands and VWs (e.g. Park and Kim, 2023) has captured the interest of researchers, prompting them to investigate customer motivations for purchasing VLF.

A review of the literature identified that most studies on consumer purchase motivations for VLF are blockchain-based non-fungible tokens (NFTs) (e.g. Khelladi et al., 2023). However, virtual luxury items found in VWs, such as Gucci in ZEPETO and Roblox, are not NFTs supported by blockchain technology; instead, they represent a certain type of virtual fashion (often called skins) resulting from collaborations between luxury brands and VW creators (Kim et al., 2023). This form of virtual luxury differs from NFTs in terms of technological features, pricing structures, and consumer experiences. Due to these differences, NFTs and luxury skins in VWs cater to distinct purchase motivations. The primary driver for NFTs is their financial and investment value, as they are often regarded as collectible assets with high potential for resale and appreciation (Eastman et al., 2024). In contrast, luxury skins are linked to consumer avatars and virtual experiences, emphasizing personalisation and in-game interaction (Park et al., 2023). As a result, findings from studies on NFTs may not fully capture or explain the consumer purchase motivations specific to VLF in VWs.

Researchers, such as Kim et al. (2023), have begun examining consumer motivations for purchasing products resulting from collaborations between luxury brands and VW creators. These studies (e.g. Park and Kim, 2023; Park et al., 2023) have primarily focused on South Korean users of ZEPETO and used quantitative research methods, such as structural equation modelling. However, the literature lacks a qualitative exploration of Chinese consumer motivations of VLF in VWs. This study addresses the need to focus on Chinese consumers, as they represent a significant target demographic for both the global luxury and VWs industries, particularly among Generation Z and millennials (Ryder, 2022). Moreover, a qualitative approach is necessary for this emerging research area because accurately identifying the factors that influence consumer motivations is essential before attempting to quantify them. This approach allows researchers to explore the complexities of virtual luxury fashion consumption.

The purpose of this study is to offer a comprehensive understanding of consumer purchase motivations for VLF in VWs. This is achieved by building on a theory of consumption values (TCV; Sheth et al., 1991) framework and integrating insights from research on luxury fashion and virtual consumption. To do so, this study investigates Chinese consumers' virtual experiences in VWs by using semi-structured interviews and thematic analysis. Findings from this qualitative study were integrated into the TCV framework to explain consumer purchase motivations, enriching the field of VLF consumption. As such, the theoretical implications of this study extend beyond the luxury sector, including virtual fashion and VWs. Furthermore, this study can be applied to real-life brand collaborations with VWs by providing industry managers with a deeper understanding of consumer purchase motivations for VLF in VWs. This paper begins with a literature review and is followed by the methodology, results and discussion, conclusion, implications, limitations and future research.

VLF consumption refers to the process whereby users acquire and utilise virtual items specifically crafted or marketed by luxury brands within virtual environments (Liu et al., 2024). This emergent trend in luxury consumption is facilitated by cutting-edge technologies such as virtual reality (VR), augmented reality (AR), and blockchain, leading to diverse presentations of VLF across various platforms (Joy et al., 2022).

VR-based VLF occurs most frequently in VWs, as seen in collaborations between Louis Vuitton and League of Legends (Kim et al., 2023). In this context, consumers can style their game characters by acquiring luxury brand-themed skins. AR-based VLF has been exemplified by initiatives like Gucci’s virtual sneaker, which allows consumers to wear virtual sneakers through a smartphone application (Khelladi et al., 2023). NFTs are digital assets that represent ownership of unique information stored on the blockchain, allowing consumers to trade virtual luxury artworks through online NFT marketplaces such as OpenSea (Bao et al., 2024).

Different categories of VLF can be distinguished by their technological features, such as blockchain, in-game trading, and gifting systems, each catering to different target audiences, price points, and distinct consumer experiences (Table 1). This study specifically focuses on VR-based VLF in VWs, such as luxury skins in video games, to address the current research gap in understanding consumer purchase intentions within this category.

VWs are a type of VR that offers users an experience in computer-simulated 3D space by manipulating virtual characters (Cowan and Ketron, 2019). VWs exist in social media (e.g. ZEPETO) and video games (e.g. Honor of Kings) in which users interact with simulated virtual spaces appearing on the screens of mobile devices, computers, and video game consoles. An illustrative VLF in VWs example is Bulgari’s collaboration with Honor of Kings (Wu, 2023); Characters play a central role in this luxury brand experience for users, who are typically empowered to modify the appearance of their avatars using a variety of virtual products (Korkeila and Hamari, 2020).

A review of the literature identified that studies on consumer purchase motivations for VLF in VWs have been conducted recently, around 2023 (Table 2). Scholars have mainly used quantitative research methods, such as structural equation modelling (SEM) (e.g. Park and Kim, 2023), to investigate the antecedents of consumer purchase intentions, particularly among South Korean consumers. These studies often draw on theories such as Co-creation Theory (Kim et al., 2023) and Game Theory (Sung et al., 2023). Common findings include key factors like consumer identity alignment with VLF, the flow experience in VWs, perceived social values linked to VLF, and the credibility of luxury brands within VWs. However, existing literature does not provide a comprehensive understanding of Chinese consumers' purchase intentions for VLF in VWs, particularly through a qualitative approach. Accurately quantifying consumer purchase motivations remains challenging until the underlying factors influencing these decisions are thoroughly identified. To address this gap, this study employs semi-structured interviews and thematic analysis to explore consumer purchase motivations, drawing on the TCV (Sheth et al., 1991).

The TCV (Sheth et al., 1991) offers a comprehensive model to explain the motivations behind consumer purchasing decisions. The core concept is that consumers make purchase decisions based on the perceived value of the product or service. This model identifies five kinds of values: social, emotional, functional, epistemic, and conditional (Sheth et al., 1991).

In luxury fashion consumption, social value is closely related to status consumption, where consumers acquire luxury brand products to signal social status (Pino et al., 2019). Emotional value refers to the pleasure and satisfaction derived from luxury goods or experiences (Blazquez et al., 2020). Functional value emphasizes the appeal of luxury goods based on their superior quality and performance (Liu et al., 2023). Epistemic value highlights consumers' pursuit of novelty through luxury products or services (de Kerviler and Rodriguez, 2019). Lastly, conditional value arises in specific circumstances, such as purchasing luxury items (e.g. a wedding gown) for special occasions (e.g. a wedding; Sheth et al., 1991).

The literature suggests that luxury values are suitable for uncovering various purchase motivations associated with luxury fashion consumption. These values have been utilised to explore consumer purchase motivations in both physical luxury contexts (e.g. Yang et al., 2024) and virtual luxury contexts (e.g. NFTs) (Eastman et al., 2024). For the current study, the consumer purchase motivations for VLF in VWs are influenced by a complex interplay between luxury brands and consumers' virtual experiences. Therefore, the TCV framework, which incorporates multidimensional values, can effectively investigate the values consumers perceive from VLF in VWs.

The revenue of the luxury goods market in China is estimated to be approximately $56bn, with an annual growth rate of 3.93% (Statista, 2024a). According to Bain & Company, the Chinese luxury goods market accounts for about 35% of global luxury goods consumption, and Chinese Generation Z and Millennials are emerging as key drivers of luxury consumption (D'Arpizio and Levato, 2022). To effectively target these segments, luxury brands are increasingly enhancing their online presence as these generations spend significant time and are highly active in digital spaces. Therefore, VWs have become a crucial platform for luxury brands to connect with these consumers and explore new opportunities (Liu et al., 2024).

The VW industry, which includes the video gaming market in China, has exceeded $94bn, with a year-on-year increase of 8.11%; mobile and PC games such as Honor of Kings and League of Legends generate significant revenue in the Chinese gaming market (Statista, 2024b). These VWs are free-to-play, but they offer in-game purchases, such as skins, which allow players to customise their experience and express their personality and status within the gaming community (Hamari and Keronen, 2017). However, luxury-branded skins are a relatively new concept, as most skins in VWs are not branded. There is a need for research into how collaborations between the luxury and VW industries can attract younger Chinese consumers and whether these partnerships offer business benefits for both sectors.

This study aims to investigate consumer purchase motivations for VLF in VWs. The researchers utilised semi-structured interviews to gather relevant data through probing questions (Adams, 2015). Previous studies (Makkar and Yap, 2018) have successfully used this approach to analyse consumer purchase motivations in luxury consumption. Measuring an individual’s motivation for purchasing VLF is difficult, as these goods exist at the intersection of luxury brands and the virtual realm. Consumers’ purchasing intentions of such goods are influenced not only by branding but also by the dynamics of their virtual experiences (Park et al., 2023). Therefore, quantifying consumer purchase motivations can be challenging until the factors influencing them are accurately identified. Using semi-structured interviews enabled a more comprehensive examination of consumers’ virtual experiences in VWs, helping the researchers identify the key factors that influenced individuals’ motivations for investing in VLF.

To ensure the selection of suitable participants for the study, researchers first employed purposive sampling, a method that involves deliberately selecting individuals who possess specific characteristics or knowledge relevant to the research topic (Etikan et al., 2016). Consequently, the researchers exclusively recruited interviewees who had purchased and used VLF in VWs. The researchers posted invitations for interviews online platforms, seeking Chinese participants aged over 18 who had purchased VLF and are active in VWs. The platforms (ZEPETO, Honor of Kings, and League of Legends) were chosen because they have many active users who have VLF experiences. The rationale for targeting Chinese millennials and Gen Z consumers in this segment of virtual luxury fashion consumption is twofold: only a few studies explore Chinese consumers' purchase motivations for VLF in VWs, and they are the main target audience contributing to the revenues of VLF-related businesses (Langer, 2020).

After the initial invitation, the researchers used snowball sampling, asking participants to recommend other consumers with similar VLF experiences. The efficacy of snowball sampling participant recruitment has been demonstrated in prior studies in the luxury fashion context (Bazi et al., 2020; Rathi et al., 2023). This approach ensures a degree of homogeneity in the respondent profile and mitigates the inclusion of non-representative participants. A total of 28 potential respondents were approached. After the screening, 21 participants’ responses were collected and analysed to identify and classify themes (Table 3). All participants had at least one experience purchasing and using VLF, with 17 out of 21 being active in more than one VW. For example, they purchased Gucci handbags in ZEPETO, Louis Vuitton skins in League of Legends, and Burberry skins in Honor of Kings. The most frequently mentioned luxury brand was Louis Vuitton, and the VW they engaged with the most was Honor of Kings. Ethics approval (Project ID: 25972) was obtained from the Design and Social Context College Human Ethics Advisory Network, a subcommittee of the Royal Melbourne Institute of Technology (RMIT) University Human Research Ethics Committee, Melbourne, Australia.

The identities of all interviewees were anonymized. The interviews, conducted in both English and Chinese, ranged from 30 to 50 min each. In instances where participants encountered difficulty expressing their thoughts in English, especially when referring to specific Chinese terms, the participants were permitted to switch to Chinese for clarification. The author, proficient in both languages, meticulously translated these terms and passages to preserve the essential meaning of participants’ responses. All interviews were recorded, transcribed, and translated into English for subsequent data analysis. Data collection concluded upon reaching theoretical saturation by the 21st interview, during which no new insights were gained.

The researchers prepared screening and interview questions to explore the participants’ virtual experiences and purchase motivations for VLF by adapting from Rathi et al.’s study (2023). Participants’ eligibility for this study was assessed by a screening question: “Do you have any experience in purchasing luxury fashion in virtual worlds?” In the initial phase of interviews, participants were asked to discuss their favourite luxury brands, brand experiences, and the VWs they participated in. The second phase focused on understanding participants’ behaviours related to using and purchasing virtual items in VWs. In the third phase, researchers encouraged participants to share insights regarding their interactions with VLF. Finally, participants were allowed to express their expectations on upcoming developments and trends in virtual luxury consumption.

Data analysis focused on identifying and classifying themes to gain insights into consumers’ purchase motivations of VLF in VWs. The interviews underwent thematic analysis (Braun and Clarke, 2019), and the software NVivo (NVivo 12, released in 2017) was used to code the themes. Two coding techniques were employed: open and axial coding. Open coding helped identify concepts that were later grouped into categories, while axial coding facilitated the establishment of connections between these categories. Researchers analysed interview transcripts to characterize first-order codes, which were subsequently categorized into themes. These themes were supported by drawing on previous knowledge from the literature on both luxury and virtual consumption to better understand such intersection of luxury brands and the virtual realm. To ensure the validity and reliability of coding and the accuracy of the themes, three researchers participated in the coding process and themes discussion. When reporting the findings, the researcher anonymized the brand names, including both luxury brands and VWs, mentioned in participants' responses.

This study revealed nine key consumer purchase motivations for VLF in VWs. By mapping the findings onto the TCV framework (which is supported by both luxury fashion and virtual consumption theories), the study identified the driving values for purchasing VLF in VWs as social (conspicuous consumption needs and self-expression), emotional (perceived enjoyment and emotional connection), functional (visual aesthetics), epistemic (novelty), and conditional (character usage frequency). Furthermore, brand awareness and perceived exclusivity of VLF have also been found to influence purchasing decisions and shape consumers' perceptions of the social value of VLF. Table 4 present a detailed thematic analysis on findings. Themes are discussed below and accompanied by representative quotations from the interviews.

Consumers perceive social value in purchasing VLF in VWs. Consumers acquire VLF to signal social status (i.e. conspicuous consumption needs) or to maintain a consistent social identity between real life and VWs (i.e. self-expression).

Most participants who tended to elevate their status in VWs had the intention of purchasing symbolic items, such as iconic luxury patterns and logos, for their character, thereby garnering recognition from their peers. They said,

This aligns with previous studies that have stressed the importance of conspicuous consumption (Han et al., 2010; Pino et al., 2019; Blazquez et al., 2020) in shaping consumer purchase intentions in luxury fashion consumption. VLF serves the same social function as physical luxury. This also confirms that consumers have visual authority (i.e. show off to friends) needs in their virtual consumption of VWs (Marder et al., 2019). Gamers exhibit show-off behaviour in games by using and displaying symbols. For example, when they win a game and earn special titles or badges (Hamari et al., 2017), they can use these to showcase their achievements to other gamers. By displaying them, other gamers recognize their accomplishments, thereby enhancing their status. However, this traditional way of showing off through such symbols has changed with the introduction of luxury brands into VWs. VLF has become a new symbol for users to fulfil their conspicuous consumption needs, influencing their show-off behaviour and driving purchase intentions in a virtual environment.

Participants also believe that using VLF can help them to express themselves and achieve a consistent personal image in both real life and virtual environments. One respondent explains,

This not only confirms that individuals have a need to express their identity in virtual environments (Sharma et al., 2022), but also that consumers use luxury brands to showcase their identities and underlying values (Bian and Forsythe, 2012; Liu et al., 2023), even when the goods are virtual. Furthermore, it reveals a phenomenon in which some users in VWs seek consistency in their social image between reality and virtual space. This means that the social value of luxury brands for consumers to express themselves can extend beyond the physical world, influencing their digital identities as well. This suggests that the social value of VLF serves as a form of self-representation to reinforce social belonging in virtual environments.

Consumers purchase VLF when they perceive emotional value in game characters. This includes having an enjoyable gaming experience with certain characters (i.e. perceived enjoyment) or feeling a connection with them (i.e. emotional connection) in VWs.

Participants, especially from League of Legends and Honor of Kings, claimed that perceived enjoyment drives them to purchase VLF in VWs. Once participants have an enjoyable gaming experience (e.g. winning a game) by using a particular character, their intention to purchase luxury skins for that character increases. The following response confirms this,

These findings confirm the significance of perceived enjoyment in gamers’ experiences in VWs (Mkedder and Özata, 2023; Ramírez-Correa et al., 2019). VWs, such as Honor of Kings, are entertaining video games, and their users seek enjoyable virtual experiences. Enjoyment derived from consumers' virtual experiences influences their VLF purchase motivations. This also partially corroborates Park et al.'s (2023) study on ZEPETO VWs. However, this research found that the perception of enjoyment centres on consumers' engagement with character-playing experiences rather than their interaction with VLF. This can be explained by differences in game mechanics and characters’ experiences in VWs.

On platforms like ZEPETO, which function as social media platforms, consumers’ style and manipulate characters to interact with other users. In such environments, virtual fashion holds significant importance in enhancing the overall virtual experience. On the other hand, gaming-centric worlds like League of Legends prioritize gaming experiences over virtual fashion. As a result, consumers perceive enjoyment differently depending on the type of VWs they engage with.

Furthermore, participants purchase VLF in VWs because they like their characters and feel connected to them. These emotional responses are evoked by the characters' appearances and personalities. Game producers design characters with distinctive appearances, personality traits, and skills in VWs. Some game character designs (e.g. Lolis, which has the appearance of children) evoke emotional reactions from some participants. They said:

This phenomenon has been identified and named 'character dedication' by previous researchers (Marder et al., 2019), who claim that consumers' emotional connections with their game characters lead users to become more invested in a particular character, such as by purchasing skins for that character. The findings of this study add that such emotional connections are multidimensional, whereby players may feel that character design reflects part of their identity (Ko and Park, 2021) or view the character as someone significant in their life, such as a friend, family member or ideal partner (Table 4). Purchasing luxury skins for characters with whom consumers feel connected, meets consumers' emotional satisfaction in VWs. They said:

VLF in VWs offers consumers emotional value, but in a way that differs from traditional luxury consumption. This difference arises because consumers in VWs perceive emotional value primarily through their connection with virtual characters rather than with the luxury brands themselves. While emotional value in luxury consumption has traditionally been associated with a connection between consumers and luxury brands (e.g. brand attachment; Kaufmann et al., 2016), this study suggests that in VWs, users invest more emotional significance in their characters, with virtual luxury serving primarily as a means to achieve that emotional satisfaction.

Interviewees’ responses in this study confirmed the role of aesthetics, specifically the quality of VLF (e.g. visual appearance, animation, sound, and character actions) in motivating their purchase of VLF. One respondent (Participant No.17) said, “You can see many premium design details in impressive visual effects during character performances and movement.”

Participants also had high expectations of virtual fashion from luxury brands and would have been disappointed if VLF lacked conspicuous features, such as an obvious brand iconic design. They said,

This confirms previous studies (e.g. Mkedder and Özata, 2023) that highlight the role of aesthetics in consumers' purchasing of virtual fashion in VWs. However, when virtual fashion is linked to luxury brands, consumers' expectations regarding the quality of virtual products are enhanced. Consumers naturally perceive VLF as possessing premium quality and aesthetics due to luxury branding. This can be explained by brand aesthetics and design consistency (Seifert et al., 2019). Current VLF in VWs maintains a consistent brand aesthetic, thereby enhancing brand recognition accuracy. Consumers tend to respond more favourably to VLF offerings when they perceive them to embody the iconic aesthetic design associated with luxury branding. In contrast, consumers may feel confused and disappointed with a luxury brand if VLF is offered as poor product performance (Guzzetti et al., 2023).

Consumers purchase VLF because such collaborations between real life brands and VWs are novel. Participants exhibited both keen interest and surprise when they first encountered a VW collaborating with a luxury fashion brand. The following response (Participant No.7) substantiates this, “When I first saw their collaboration (luxury brand and virtual world), I found it quite fresh and exciting because I had never seen this kind of collaboration before.”

Participants, however, also highlighted that maintaining novelty should come from collaborations between more real-life brands and VWs, instead of the same luxury brands, and stated:

Since VLF in VWs is novel to consumers, they are motivated to purchase it out of a desire to explore new experiences. This aligns with the findings of Marder et al.'s (2019) study, which reveals consumers' novelty-seeking behaviour in their virtual fashion purchases within VWs. This study further elaborates on the perceived novelty of VLF, which is shaped by real-life brands' collaborations with VWs. Consumers' desire for novelty is sparked by the involvement of multiple real-life brands rather than just a single luxury brand. These findings which indicate that consumers lose interest in VLF when it comes from a single brand, raises questions about the sustainability of long-term collaborations between individual luxury brands and VWs.

Consumers purchase VLF under a certain condition: when the game character they play most frequently has access to luxury items. VLF in VWs such as League of Legends is often specific to particular characters and cannot be transferred to other game characters. Participants, particularly those with strong character usage preferences, tend to invest in skins exclusively for the game characters they play most often. Conversely, they have less interest in acquiring luxury skins for characters that do not see frequent gameplay:

This purchasing motivation is influenced by both player behaviour and the method of collaboration between luxury brands and VWs. VWs of multiplayer online battle arena games such as Honor of Kings and League of Legends provide a diverse selection of game characters for players. Players often excel at using a specific character that enables them to succeed more easily in competitions and missions in VWs (Hodges and Buckley, 2018), shaping their preferences for certain characters and the desire to consistently play them.

Current VLF experiences in VWs are only offered to certain characters, and not all characters have access to VLF. No prior study has emphasized these limits of VLF experiences. The reason behind this is that luxury brands carefully choose game characters that can represent the brand to ensure consistency in brand image. For example, Bulgari only collaborates with the game character Mi Yue in Honor of Kings, as this character shares an image (i.e. an independent woman) that reflects Bulgari’s brand image (Bulgari, 2023). But making VLF exclusive to certain characters limits the purchasing intentions of consumers who base their decisions on the frequency of character usage. For these consumers, luxury branding appears to have little impact on their purchasing decisions within VWs. Instead, their motivation to purchase VLF is driven by their gameplay experience with the character.

Consumers buy VLF in VWs because they can recognize and are familiar with the associated luxury brand. All interviewees who utilised VLF for self-expression affirmed this, emphasizing that their purchasing intentions are grounded in their prior experiences and familiarity with the brand in their real life. The following response substantiates this:

Studies on luxury consumption (Rahman et al., 2021) have highlighted that consumers' brand awareness positively influences luxury purchases, a finding that this study supports in the context of virtual luxury. The present study demonstrates that consumers' recognition of real-life luxury brand elements, such as logos, iconic patterns, and designs, can similarly drive VLF purchases in VWs. This brand awareness enables consumers to identify the brand and its design features under different conditions (Godey et al., 2016), including virtual environments.

Furthermore, this study reveals that brand awareness extends beyond influencing purchasing behaviour; it also plays a crucial role in shaping consumers' social values, particularly their self-expression. Recognizing and connecting with a brand becomes a key factor in how consumers use VLF to express their identity in virtual spaces. In this context, consumers' brand awareness is not merely about familiarity, but serves as a significant precursor to using VLF as a tool for self-expression and social signalling in VWs.

Consumers' purchase intentions for VLF are influenced by the limited availability of offerings in VWs. VLF is often available for a specific period in VWs to create a sense of exclusivity and scarcity. One respondent (Participant No.10) says, “You can only purchase them during that specific week. If you miss this opportunity, you may not be able to get it again”. In addition, participants, especially those with a pronounced inclination toward conspicuous consumption, pointed out that VLF is unable to maintain exclusivity in most VWs given its accessibility to a broad audience at affordable prices. They said,

Perceived exclusivity is an essential part of consumers’ perception of luxury, for both physical and virtual worlds. However, traditional exclusivity in luxury is often associated with premium pricing, which enhances the perception of uniqueness, as high prices are unaffordable for most consumers (Wang et al., 2022). In VWs, the perceived exclusivity of VLF items is primarily created through the limited availability of offerings, which aligns with Mkedder and Özata’s (2023) study. This explains why a virtual Gucci handbag in Roblox can be resold through the in-game trading system for over $4,000 by scalpers. The exclusivity of VLF is not driven by a high price but by its limited-edition status. Scalpers resell virtual Gucci handbags to users who missed the opportunity to purchase them, leading to prices that are comparable to those of real products.

This study further suggests that perceived exclusivity influences consumers' perceived social value of VLF, particularly in relation to their conspicuous consumption needs. Consumers with a strong desire for conspicuous consumption in VWs emphasized that the exclusivity of a VLF item plays a key role in their purchase intentions. This insight aligns with previous studies on luxury consumption (e.g. Eastman and Eastman, 2015), which have identified a positive relationship between status-driven consumption and perceived exclusivity.

This qualitative study investigated consumer purchase motivations for VLF in VWs by building on a theory of consumption values. By analysing the findings in relation to both previous luxury fashion and virtual consumption studies, this study suggests that consumer purchase motivations for VLF in VWs are influenced by a complex interplay between luxury brands and virtual experiences in VWs. It offers fresh insights into virtual luxury fashion consumption, showing that consumer purchase motivations for VLF in VWs cannot be adequately explained solely through the lens of luxury consumption. Instead, game characters, game mechanics, and the method of collaboration between luxury brands and VWs, shape consumers’ virtual experiences and significantly impacts the purchase motivations of VLF. By mapping the findings into the TCV framework, this study offers scholars a holistic understanding of consumer motivations for purchasing and engaging with luxury fashion in VWs (Table 5).

The theoretical implications of these findings extend beyond the luxury sector, including virtual fashion and VWs. The findings make a significant contribution to the existing literature in three key aspects.

First, this research contributes to the emerging field of VLF consumption by using a qualitative approach to explore Chinese consumers' motivations for purchasing VLF in VWs. By identifying nine key purchase motivations among consumer groups that are significant targets in both the luxury goods and VW industries, this study enriches the literature on luxury goods by not only offering a deeper understanding of purchase motivations in the context of VLF but also highlighting that such consumption is shaped by the intersection of luxury branding and virtual experiences.

Second, this study demonstrates the applicability of the TCV framework in the virtual luxury consumption context. While the TCV framework has been adopted in physical luxury product purchasing, its use in virtual luxury settings has remained limited. This research demonstrates its relevance and effectiveness in understanding consumer purchases of virtual luxury goods.

A key finding is that TCV values that influence physical luxury purchases, such as social value (e.g. status consumption; Pino et al., 2019), can similarly affect virtual luxury purchases. However, other TCV values, such as emotional value (e.g. a connection between self and the brand; Kaufmann et al., 2016) do not have the same impact in virtual settings. This difference arises because consumers in VWs perceive emotional value differently, associating it more with their virtual characters than with the luxury brands themselves. As a result, the emotional value offered by luxury brands does not drive virtual purchases in the same way.

Based on these findings, this study not only involved recontextualizing the values from TCV in a virtual luxury context to help explain the values influencing consumers’ intent to purchase VLF, but also provides scholars with a theoretical avenue for further exploration: investigating consumer purchase intentions of virtual luxury goods in relation to purchase antecedents of physical ones. This approach would allow scholars to pinpoint the specific values that wield influence over consumer purchase intentions and discern those that do not.

Finally, this research helps distinguish consumer motivations for purchasing virtual items in VWs versus branded items in a VW. Scholars (Hamari et al., 2017; Ko and Park, 2021; Marder et al., 2019) have investigated what drives people to purchase virtual items in VWs, but virtual items in those studies lacked connections to a real-life brand. This study further elaborates on purchase motivations in virtual consumption research by revealing the fluctuations in consumers’ purchase intentions when virtual goods are associated with luxury brands. The main fluctuations are identified in those consumers who can perceive the value of luxury brands in VWs. Consumers believe that luxury brands can enhance the value of virtual items, for example, by improving their virtual image and status. However, this study also found that some consumers’ purchase motivations are not influenced by luxury brands. This type of consumer purchasing VLF is mainly concerned about their virtual experiences (e.g. playing a character and game mechanisms) instead of luxury brand experiences.

This study is timely for both luxury brands and creators of VWs, given the increasing collaboration between these two industries. The findings of this study can be applied to real-life brand collaborations with VWs. The pioneering study conducted by Barnes et al. (2015) highlights the need for brand experiences in VWs. Unfortunately, there has not been a significant development in such collaborations, perhaps in part because the lack of overlap between VW audiences and the luxury brand customers. However, the younger generation, Gen Z, has shown an increasing interest in luxury goods alongside deep engagement in VWs (Joy et al., 2022). Brand experiences in virtual environments, therefore, hold substantial business value given their ability to connect with and expand target audiences.

This research offers managers of luxury brands and VWs strategic guidance for virtual product development and customer experiences in virtual environments. Both managers must recognize the inherent diversity in consumers’ motivations for purchasing VLF. Their motivations are shaped by the synthesis of brand-influence purchasing desires and motivations to enhance their virtual experiences. Branding strategies should leverage the mechanisms of VWs. Luxury fashion managers tasked with selecting VWs for collaboration should be aware that each virtual environment operates under distinctive mechanisms that govern user experiences (e.g. how to buy and how to use). This awareness is critical as it not only impacts consumers’ purchase motivation of VLF but also profoundly influences how consumers interact with and perceive brands and values of VLF in VWs. Previous research (Guzzetti et al., 2023) has pointed out several consumers’ potential negative responses to branding when they encounter collaborations of this nature.

In addition, luxury brand managers need to pay attention to consumers whose motivations are not primarily driven by branding. To enhance the emotional value of VLF, effective storytelling is essential. Incorporating luxury heritage narratives into VWs can evoke emotional resonance and deepen consumers' engagement with the brand. For example, releasing a promotional video or documentary of virtual product production (Bulgari, 2023) can enhance storytelling, effectively conveying the luxury brand’s values to consumers. This approach is vital for not only retaining existing consumers but also attracting new ones who may be currently disengaged with current collaborative efforts.

Virtual luxury consumption is currently in the development and exploration phase. This study contributes to an understanding of consumer purchase motivations for VLF in VWs. However, there are some limitations.

Participants in this study were limited to Chinese consumers who purchase VLF in VWs, but the findings may still be applicable to consumers worldwide, as they share similar online experiences with VLF. Next, this study adopts the TCV framework to analyse consumer motivations, which may introduce limitations by focusing on predefined value categories. Other potentially relevant factors outside the TCV framework might not be fully captured or explored. Furthermore, the virtual luxury products this study focused on were virtual fashion items in VWs (e.g. video games). The consumer purchase intentions identified in this study may differ from motivations to purchase other types of virtual luxury goods (e.g. NFTs or AR-based products). Researchers must recognize that different virtual luxury goods have their unique pricing structures, selling approaches, and brand experiences that serve distinct customer segments. Further exploration is required to investigate whether the customer purchasing motivations in this study can be applied to other types of virtual luxury goods.

Finally, the nature of semi-structured interviews and thematic analysis may have led to observer bias even though three researchers participated in this study’s data analysis to reduce bias. Future researchers could conduct a longitudinal study using structural equation modelling to investigate a cause-and-effect relationship between the purchasing motivations identified in this study and consumers’ purchase intentions to confirm this study’s validity.