The intersection of fashion, gaming, and technology is taking a significant step forward with the launch of LuxeRealm, a pioneering phygital jewellery collection introduced by Lockwood Publishing, the creators of the 3D social game Avakin Life, in collaboration with the tech startup PhygitalTwin. This initiative blends the physical and digital worlds by offering jewellery items that exist both as tangible accessories and as digital representations within the Avakin Life metaverse.

Phygital, a term combining “physical” and “digital”, is increasingly shaping consumer experiences across industries by merging in-person and virtual engagement. The LuxeRealm collection embodies this trend, allowing consumers to purchase a jewel in the metaverse that they also own in real life. This approach highlights a shift in how people express identity, bridging avatars—the digital personas gamers create—and their physical selves.

Launching alongside the collection was the Dual Spark Competition, a community-oriented event held between 28 February and 5 March 2025. Participants were invited to design outfits that fused personal style with the game’s virtual universe. Winners, announced in mid-March 2025, received exclusive LuxeRealm jewellery pieces, which can be worn both digitally within Avakin Life and physically. Lockwood Publishing’s initiative aims to deepen user engagement by merging avatar customization with the prestige associated with luxury physical goods.

Since its inception in 2013, Avakin Life has grown to amass over 200 million registered users worldwide, distinguishing itself through a focus on self-expression and avatar customisation. The addition of phygital items complements this ethos, expanding the core gameplay experience by linking digital purchases with real-world ownership.

PhygitalTwin supports this innovation through blockchain technology, which authenticates each physical LuxeRealm jewellery item with a digital twin that is transferrable and viewable across compatible virtual worlds. This blockchain foundation certifies ownership and facilitates interoperability, allowing a single piece to be showcased as a physical accessory and a digital asset across multiple gaming and Metaverse platforms.

The phygital market is gaining momentum rapidly. According to reports by Livvium – Empowering Brands to Thrive in Digital Spaces, the digital fashion sector is estimated to have surpassed $50 billion by 2024. Major players such as Nike with RTFKT, Balenciaga via Fortnite, and Gucci with its Gucci Vault have set precedents for luxury fashion’s foray into virtual realms. LuxeRealm’s model reconciles gamers’ desire for detailed avatar customisation with luxury brands’ exclusivity, potentially establishing a new commercial and cultural paradigm.

The rise of phygital reflects broader societal trends where younger generations, accustomed to social media and selfie culture, place significant importance on their digital identities alongside physical appearance. Wearing items both online and offline becomes a mode of self-branding and communication, with continuity between virtual and real-world personas increasingly valued.

Accompanying LuxeRealm are various industry examples illustrating the phygital approach’s growing adoption. Retailers like Refy Beauty employed immersive digital storytelling at Selfridges, Lancôme engaged adult consumers on Roblox with conversion-focused campaigns, and startups like Doji introduced hyper-realistic digital mirrors for virtual clothing trials. Decentraland’s Metaverse Fashion Week further exemplifies how virtual events influence real-world fashion trends.

Whether LuxeRealm marks a temporary marketing innovation or signals a lasting transformation remains to be seen. However, the collaboration signifies the evolving dynamics of commerce at the confluence of gaming, fashion, and technology. The capacity to create collections that are simultaneously available in physical stores and multiple virtual worlds suggests phygital objects could become a standard for brands pursuing distinctive, premium experiences. The NFT tied to each LuxeRealm jewel may evolve into a membership key for exclusive communities, while avatars act as authentic reflections of their users.

In essence, fashion’s role is expanding beyond mere clothing; it now duplicates and augments identity across physical and digital spaces, reflecting a new era of consumer interaction and market development. The LuxeRealm project presents a concrete example of how immersive technology and luxury branding are merging to create fresh avenues for self-expression and commerce in the digital age.

Source: Noah Wire Services