Chic meets tech: a text mining approach to unlock the Metaverse’s fashion potential

Since the Metaverse gained momentum, fashion companies were the first movers to incorporate it. While the Metaverse presents numerous opportunities, there is limited research providing structured guidance on how fashion companies can strategically integrate and leverage it. This study addresses this gap by examining the role of the Metaverse in the fashion industry, offering insights for companies navigating this new digital landscape. A collection of 75 reports from 19 companies was analyzed via text mining, including sentiment analysis and topic modelling. The findings suggest that fashion companies have a positive outlook on the potential of the Metaverse for customer engagement, novel business models, and operational efficiency. However, several challenges must be addressed, including limited application and demand, and technological and security concerns. Drawing on the Innovation Ambidexterity theory, the study recommends that fashion companies undertake both explorative and exploitative actions to succeed in the Metaverse.