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This paper aims to synthesize the existing literature on virtual reality (VR) in the luxury fashion industry, discuss the current practical applications of VR technologies and review previous research undertaken in the luxury fashion field.

This paper conducts a systematic review and thematic analysis of existing literature to evaluate current research concerning VR and the luxury fashion industry. This search initially returned a total of 1,131 sources. After establishing and applying criteria of exclusion and inclusion, a total of 46 articles were selected for the thematic analysis.

Five major themes were identified, including virtual luxury fashion consumption, VR in marketing communication, virtual try-on, VR retail (including virtual fashion retail spaces) and virtual worlds (including customers’ virtual representation as avatars). The importance of these themes for the study of VR in luxury fashion is supported by relevant studies in the literature.

Whilst research into VR use within luxury fashion has increased recently, it remains fragmented. Given the absence of a comprehensive review addressing this topic within the literature, this paper will help scholars and fashion brands better understand the effects of VR on the luxury fashion industry. By integrating current practice and existing research, this paper contributes to a better understanding of how and where VR is used in luxury fashion contexts.

This study aims to determine Chinese consumers’ motivations for purchasing virtual luxury fashion in virtual worlds (i.e. luxury skins in video games), building on a theory of consumption values, luxury fashion and virtual consumption studies.

The researchers conducted qualitative research that utilised semi-structured interviews and thematic analysis using NVivo. About 21 Chinese participant responses were collected and analysed to identify and classify themes.

Consumers purchase virtual luxury products for nine reasons. These include social value, driven by conspicuous consumption needs and self-expression; emotional value, involving perceived enjoyment and emotional connection derived from game characters; functional value, reflected in visual aesthetics; epistemic value, rooted in novelty and conditional value, linked to continual usage intention. These findings offer crucial insights into how consumers perceive the value of virtual luxury. The findings also reveal that brand awareness and perceived exclusivity shape consumers’ perceptions of the social value of virtual luxury fashion, which, in turn, influences their purchasing decisions.

This study is timely for both luxury brands and creators of virtual worlds, given the increasing collaboration between these two industries. By building upon a theory of consumption values, this study contributes to the rapidly growing research field of virtual luxury fashion consumption. Furthermore, the findings of this study, which reveal the key drivers behind consumers’ purchasing decisions, can be applied to real-life brand collaborations with creators of virtual worlds. A comprehensive understanding of consumer purchase motivations can offer strategic guidance for virtual product development and the enhancement of customer experiences in these environments.