Last year, luxury wanted a slice of the non-fungible token (NFT) and metaverse pies, with umpteen fashion brands hastily diving into the digital space. Fast-forward to 2023 and Web3 has undergone a seismic shift as a result of this gold rush going bust. Crashes, controversies, rug-pulls all seemed to happen at once, forcing the luxury and fashion world to refine their Web3 strategies in a maturing and more cautious market.
Jing Daily takes a look at the emerging trends and novel concepts surfacing across the digital sphere today, and what they mean for the future of fashion.
While 2022 was marked by a crypto market crash, waning popular interest, a lack of Web3 tech nous, and saw numerous digital gimmicks flounder, there are still considerable opportunities for the fashion industry in Web3.
One of the biggest Web3 trends this year has been the expansion of experiential immersive e-commerce. Also referred to as i-commerce, the digitalization of stores and retail experiences has boomed over the past nine months, catching the attention of businesses including Lancôme, Lululemon, Ralph Lauren, and Charlotte Tilbury.
AR-powered store experiences
While virtual stores are taking consumers deeper into the world of digital content, augmented reality (AR) is enhancing the physical world around them.
According to Zion Market Research, smart mirror market revenue was around $3.44 billion in 2022 and is projected to reach $7.3 billion by 2028.
AI-generated content and machine learning technologies are now an ubiquitous tool for companies and brands, as outlined in Jing Daily’s “The Future of Generative AI for Luxury Brands” report, despite only breaking onto the mainstream last year.
Exclusive phygital products
While McKinsey estimates that the digital fashion market will top $2 trillion in the next seven years, most luxury fashion investors are yet to see real value in digital assets. To counter this attitude, brands are connecting virtual twins to physical counterparts to provide buyers with double the value, and creating a new range of ‘it’ products in the process.
Source: Jing Daily