Coach-Versace mega merger’s blockchain impact

Adidas Superstar in the metaverse, MUAs’ concerns on AI, new fashion and beauty drops

Hello hello! Welcome to all our new friends! And to our current friends – thanks for coming back for this week.

This week we are covering…

🤝 What the mega merger between Coach and Versace parent firms means for blockchain

👟 Adidas Superstar steps into the metaverse

💄 30% of make-up artists concerned about AI taking over their job: Report

🔥 Hot links

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The line between physical and digital is forever blurred for future luxury consumers, forcing designers to imagine beyond the expectations of the traditional fashion business. Fashion will not only be about social signaling but will need to embody the culture and have multiple utilities in various environments to satisfy consumers.”

Korean-American designer Yoon Ahn of streetwear brand Ambush

What the mega merger between Coach and Versace parent firms means for blockchain [Link]

The situation: NY-based conglomerate Tapestry, which owns Coach and Kate Spade, is acquiring Capri Holdings - the parent company of Versace, Jimmy Choo, and Michael Kors - for $8.5B. While a number of mergers occur in the fashion space regularly, this is deemed a sizable effort to dominate the luxury space amid the reign of European conglomerates such as LVMH and Kering.

The potential implications: What could mergers like this mean for emerging tech like the blockchain?

As early as 2021, luxury brands have dipped their toes into NFTs and the metaverse. In the wake of the bear crypto market, however, they split into two groups: the first doubling down on blockchain efforts and integrating them into their product lines (mostly the European group), with the second moving to silo projects and making do with sporadic activations (mostly the American camp).

With this consolidation of the American luxury space, the use of emerging tech is likely to come to the fore as the number of players shrink and steer the luxury industry forward.

Tapestry may follow the LVMH and Kering example of integrating new tech into their brand identities.

Adidas Superstar steps into the metaverse [Link]

Adidas Originals’ latest NFT-inspired project involves the iconic Adidas Superstar, which comes covered in an understated Halo Blue/Core Black/Solar Yellow color scheme.

A blend of its real-world legacy and virtual style, the “Into the Metaverse” Superstar was released via the Adidas CONFIRMED app on Aug. 15 for $125. The reworked Superstar keeps its traditional shell-toe and rubber sole unit but with a number of modern upgrades, including a “Halo Blue” finish referencing the digital world.

Adidas is no stranger to NFT and metaverse partnerships like this, particularly with key players like Bored Ape Yacht Club, gmoney, and PUNKS Comic.

New fashion and beauty drops in the metaverse

  • Crocs and Doodles are collaborating to create a unique and expressive blend of digital art and fashion. The collection will include shoes, wearables, and “jibbitz” accessories, merging creativity, comfort, and self-expression. This is a big move in the crossover between NFTs and fashion, setting the standard for customization and digital assets.

  • L'Oréal Professionnel has released their second virtual hair collection, Odyssea: Creatures of the Sea, available on gaming platforms Roblox, Ready Player Me, and Zepeto. This project allows users to explore and express their identity in new ways, and the most notable aspect is its interoperability with various gaming platforms.

  • DRESSX and HIP-HOP AT FIFTY have collaborated on a collection of AR fashion items, including three outfits and two accessories. Each is inspired by iconic streetwear trends from the East Coast, West Coast, and the South. Buyers can also win a prize when they purchase a metalook.

30% of make-up artists concerned about AI taking over their job: Report [Link]

A survey of 46,384 MUAs by Online Makeup Academy revealed varied reactions to AI's potential influence on their profession, ranging from apprehension to adaptation.

The survey reveals mixed sentiments:

  • 29.6% expressed concerns about potential job displacement due to AI, fearing the loss of personalization that human touch brings to their profession.

  • 39.7% displayed optimism about AI, viewing it as a tool that can enhance efficiency and fuel creativity in their work.

  • 9.7% remained neutral or undecided about AI's implications, underlining the need for further research and understanding.

  • 59.9% actively monitor AI and economic developments, highlighting their awareness of the evolving landscape.

  • 59.8% experienced a downturn in service demand, reflecting the economic challenges of recent times.

  • 44.6% of MUAs had to reduce their prices to attract more clients.

The survey highlights the importance of adaptation, learning, and tech integration for MUAs. The insights from the study provide guidance to refine business strategies, enhance offerings, position as experts in face of economic uncertainties and AI influence.

🔥 Hot Links

  • Shiseido Travel Retail creates the NARS “Light The Way” omnichannel beauty experience, rife with web3 elements. (Link)

  • South Korean metaverse platform Zepeto, bets big on NFT as its ZTX (ZepetoX) venture with Jump Crypto announces a $13M seed round. (Link)

  • From provenance to exclusivity, the fusion of fashion with web3 is promising to shape the future of how we perceive, interact with, and consume fashion. (Link)

  • Here are the best fashion TikTokers that need to be on your FYP right now. (Link)

  • Onboarding platform Conductive.ai and commerce metaverse Highstreet partner to bring the metaverse to the masses. (Link)

  • AI platform True Fit and Shopify partner to enhance deliverability to enterprise customers and merchants of all sizes. (Link)

  • Music merch gets the web3 treatment. What can fashion learn? (Link)

  • Digital fashion house MNTGE releases textile patches embedded with an NFC chip - why should it matter to wearers? (Link)

  • From e-commerce to v-commerce, here’s how the global metaverse will change fashion retail. (Link)

  • Pakistan-based denim maker Soorty launches the denim collection HumAIn Chapter 2. (Link)

  • Here’s how Scandinavian brands use AI in fashion shows. (Link)

  • While metaverse hysteria is on the decline, Ambush’s Yoon Ahn is one of the few luxury players who use the tech behind it as a tool to drive business into a new age. (Link)

  • French startup VLGE opens SDK for its no-code virtual world builder aimed at the fashion, beauty, and art industries. (Link)

  • Danish brand Ganni’s Copenhagen show puts gen AI on display to craft immersive experiences. (Link)

  • Australian industrial design star Marc Newson reinvents Louis Vuitton’s iconic trunk, which earlier this year entered the metaverse. (Link)

  • Parsons continues its Roblox partnership, enabling its students to collaborate for both physical and digital selling. (Link)

  • Fashion label PHANTACi partners with MMORPG and retail-focused metaverse Highstreet to roll out PHANTACi Peninsula. (Link)

  • ChannelX World takes place on Oct 11 to feature expert talks on operating marketplaces, gen AI in the fashion world, scaling a fashion business, and more. (Link)

  • Reva-Ifeoma Ochuba relaunches her eponymous brand and talks about world domination, dabbling in crypto, and the wild dogs of Tbilisi. (Link)

  • Using modern tech in the name of sustainability, the Istanbul Fashion Connection connects with Turkish manufacturers from across industries. (Link)

All content on this newsletter is for informational purposes only and does not aim to serve as or replace expert investment advice.

If you are a startup building in the metaverse / web3 ecosystem and are raising capital, please reach out to Sfermion. Sfermion is an investment firm focused on accelerating the emergence of the metaverse.

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