PurposeThis paper explores the driving factors of parasocial relationship (PSR) in the virtual reality (VR) shopping environment, and how this relationship affects brand equity. The study also investigates the moderating role of the celebrity endorser dynamism (CED) in the relationship between PSR and its antecedents.Design/methodology/approachThe primary data collection tool is a survey administered to Chinese consumers (n = 531) who have experienced the products of UNIQLO brand on Taobao Buy + platform, and who had a PSR with the endorser in their VR shopping process. Structural equation modeling is employed to examine the hypothesized relationships among all variables.FindingsThe findings show that VR shopping factors (i.e. physical attractiveness, social presence and technology novelty) perceived by consumers to affect PSR, and this relationship and brand equity are positively associated, while CED moderates the relationship between PSR and its antecedents.Originality/valueThis study sheds light on how PSR in the VR shopping environment can improve brand equity. It contributes to the theory of PSR and persuasion as well as marketing strategies. From a managerial perspective, guidelines are provided for firms to implement value communication activities using VR, and to increase their brand equity.