🕶 Metaproof Fashion

Gm fashionistas! This is Sophia from 🕶 Metaproof Fashion, the weekly newsletter where we update you on how the metaverse & web3 are changing the fashion industry.

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💌 A quick thanks to our friends…

This edition is sponsored by the OG metaverse fashion peeps The Fabricant. They have been deep down the metaverse fashion rabbit hole since 2018 and are pioneers in every sense of the word. They are on a mission to change the fashion industry and are making great progress - check them out today!

📲 By the numbers

Revisit the findings of some of the global surveys on metaverse fashion in 2022 (Source):

• Three-fifths of survey respondents believe shopping in the metaverse will become the norm in the future, according to a 2022 survey by US research firm GoodFirms.

• About 80% of people feel more included in the metaverse, per a survey of 4,500 people by media company Momentum Worldwide, metaverse partners to the American Association of Advertising Agencies (4As).

• By 2030, it’s plausible that more than 80% of commerce could be affected by a consumer activity in the metaverse such as discovering brands or visiting a virtual store, based on a McKinsey report.

• In the UK, ⅓ of consumers plan to use the metaverse for online shopping while 59% of Brits are familiar with the metaverse and think it will take about 15 years before it goes mainstream, according to a 2,000-person study by Vista.

📫 News & trends

💯 What we loved about NFTs in 2022

2023 might be the year people finally stop hearing about NFTs - not because they’re going away for good but because there are already enough use cases to stop explaining all the clunky stuff. In this Highsnobiety roundup, what was endearing about NFTs in the last year could be partly explained by the following:

• Luxury brands took the lead, with fashion houses Gucci, Louis Vuitton, and Tiffany and Co. making high-end executions to reward early adopters

• New technology opened the door further for web3, including headways in wearables, AR machines for better designs, and crypto-related hardware improvements for enhanced collaborations in fashion and luxury

• IRL activations for real-world fun, such as NFT projects offering holders guest list spots at top-tier events

Perhaps the biggest trend of it all lies in how NFTs grew from being merely speculative into a tool to activate brand and artist superfans.

🛆 Prada enters 2023 with eighth time capsule NFT drop, offers chance to attend upcoming fashion show

Another year, another luxury house bustling with web3 activity. Prada is set to release the latest addition to its Time Capsule NFT collection, dropping on January 5, 2023. The Time capsule shirt, the eighth installment in the series, will feature prints designed by Italian photographer Enzo Ragazzini in 1969 using the optical interference technique and mechanical devices invented by Ragazzini. The perks for NFT holders: the chance to attend the Prada Menswear Fall/Winter 2023 fashion show in Milan accompanied by a guest, and each shirt coming with its own gifted NFT, serving as an invitation to join Prada’s exclusive Crypted NFT community on Discord. Prada is among the first luxury brands to openly embrace web3 and NFTs, offering followers unique experiences and behind-the-scenes access to its exclusive Crypted NFT community on Discord.

💻 CES 2023: The metaverse and web3 to take center stage In Central Hall

In 2023, the metaverse and web3 have their own designated place in the Central Hall of the Las Vegas Convention Center (LVCC) at the much-anticipated, influential tech event CES, as revealed by Kinsey Fabrizio, Consumer Technology Association’s senior vice president of membership and CES sales. Apart from metaverse and gaming track sessions, the event will showcase discussions about fashion and luxury in the “Luxury Brands Embracing Innovation: How the Best of the Best are Leaning into AI, Metaverse, and Beyond” track. It will feature the executives and innovators who are pushing luxury brands to think outside the box and leverage their products, business models, and customer experiences.

🛍️ 2022, the year of digital fashion and the rise of the metaverse

In the last year, the term "metaverse" became simply inevitable, reshaping nearly every consumer's mindset and working its way into nearly every brand's marketing strategies. Whether it was the regular release of NFTs, the establishment of virtual retail spaces, or the introduction of virtual influencers, the world of digital fashion only expanded, paving the way for what is to come. Here’s a month-on-month look at how metaverse fashion fared in 2022, including the world-first Metaverse Fashion Week in March, brand and advertising agencies getting in on the gig in May, August pop-ups from smaller labels and emerging retailers like The Edit LDN and Depop, and Lacoste and Bloomingdale’s opening up virtual stores in November.

🔮 The biggest fashion moments coming up in 2023

It’s all very meta: 2023 just might be the year that all things decentralized finally wins fashion over. Have a look at what’s in store for metaverse fashion this year, including the return of the Metaverse Fashion Week with a TBC lineup. Last year’s lineup is quite telling of the big things in store: brands like Etro and Casablanca showing up to the Decentraland-hosted festival, while virtual stores and pop-ups like that of Selfridges were a chic delight. i-D put it quite succinctly: “This year, we’re ditching new-year-new-me mantras, and instead, investing in virtual avatars – it’s cheaper than therapy.”

💰 What’s a fashion NFT anyway? How are global brands minting millions from it?

Nike has sold virtual sneakers from its Dunk Genesis Cryptokicks line of NFTs, priced from $2,500 to $449,000 for a pair. Dolce & Gabbana, Tiffany, Gucci, and Adidas have all joined Nike in raking in $240M through NFTs. The concept of spending real money on clothes that don’t physically exist might confuse some, but these virtual possessions actually convert into real sales. And they have become real added revenue for designers moving in this ultra-niche category in the nascent NFT market. There’s no stopping the brands in their momentum: Nike set up a “Nikeland” store in the metaverse, Adidas bought virtual land in The Sandbox, and Gucci’s four-minute film NFT “Aria” offered buyers an exclusive look at its design and production process by giving them a peek into the items through VR.

🌇 2022 was the year of the NFT reality check

A series of market crashes, public scandals, as well as a generally waning interest rocked the NFT market in 2022. It didn’t help that major cryptocurrency exchanges crashed and the FTX debacle led to a fall in NFT prices as they were linked to those currencies. It was a high-profile flaming out that spooked a number of consumers, yet one cannot just dismiss NFTs altogether - particularly in the fashion space. In 2023, brands are anticipated to look for more practical ways to use NFTs: fashion labels Rebecca Minkoff and Karl Lagerfeld already use them as tokens for access to pre-release sales or IRL events, while sneaker leaders like Nike and New Balance employ them as tools to track and authenticate physical products.

🌍 How GN3RA is creating the world’s first fully accessible digital fashion channel

Touted as the “world’s first fashion metaverse for creators,” digital fashion initiative GN3RA seeks to bring an accessible web3 future to all. Its first major step toward this vision is appointing the help of The Royal College of Art (RCA) in bringing seven of its alumni’s creative visions to the metaverse, with bespoke digitized patterns made available for other creators to co-design, wear, and share via the platform using the company’s dedicated toolkit. Founder and CEO Lili Eva Bartha knew the barriers rising artists in the space are facing, so she sought to help these fledgling innovators overcome the hurdles in their creative pursuit. Today, GN3RA continues to work with creators, influencers, brands, and media to grow its community of “digital fashion ambassadors” to explore what’s possible in the metaverse.

👚 2022 review: A year to remember... or forget?

Virtual worlds were all the rage in 2022, and in the intersection of fashion, beauty, and retail there was much tech focus and big talk (and moves) involving NFTs and the metaverse. For one, there will be a second Metaverse Fashion Week in 2023, and many brands remain committed to putting up their metaverse stores linked with field specialists like Roblox. One-fifth of young UK consumers bought a fashion NFT last year, and video games were a salient theme among fashion houses’ immersive experiences: Think Burberry and Lacoste x Minecraft; ASOS launching gaming apparel with Fnatic; JD Sports turning a flagship into a massive AR game experience; Sandro launching a video game for its AW22 collection; and Dior launching skins for Gran Turismo. Big players like LVMH widely explored the use of virtual ambassadors while at it.

😎 Men’s grooming brand, FACULTY, reveals $BTC varnish for nails as ‘ode to innovation’

Promoting what it calls the “third wave of masculinity,” men’s cosmetic brand FACULTY offers a portfolio of unconventional men’s products such as nail polish, nail lacquer, nail stickers, foundation, and merch. It recently announced the launch of $BTC, a triple-use clear varnish for nails that serves as base coat, top coat, and a lacquer in one, as well as it now accepts cryptocurrency payments for its products. FACULTY raised $3M in a seed round from cosmetics giant Estee Lauder in June 2021, followed by an investment from quarterback Caleb Williams, who eventually became a part-owner.

💋 From culture to food and fashion, these are the 23 rising stars to look out for in 2023

Plenty of movers and shakers in the creative and innovation world, from music prodigies to athletes to chefs, are set to create waves in 2023 as a new generation of rising stars. Among them is Nigel Matambo for technology, a Leeds-based, Zimbabwean interdisciplinary designer who has made his mark in AR by creating one of the first applications of digital wearables with Louis Vuitton and the late designer Virgil Abloh. His brand Sununguro is deeply engaged in web3, bringing digital wearables and avatars to his fashionable public via collaborations with Pharrell Williams, Nike, and Meta itself.

✔️ Listicle: How are global brands making the best use of fashion NFTs?

Many brands have launched metaverse-only collections and are already making millions off fashion NFTs. Here are some noteworthy ones:

• Gucci launching the Aria collection and collaborating with Roblox to produce the space Gucci Garden

• Adidas releasing a 30,000-strong NFT collection in collaboration with the Bored Ape Yacht Club, pixel vault’s PUNKS comics creators, and cryptocurrency investor Gmoney

• Prada joining forces with Adidas Originals for a limited-edition NFT project dubbed as “Adidas for Prada Re-Source”

• Balenciaga releasing an NFT capsule in video game Fortnite in 2021

• Zara dabbling in AR through an AR app and AR displays placed in 120 stores worldwide, along with partnerships with South Korean metaverse platform Zepeto and fashion collective Ader Error

💡 Lookback: What is digital fashion, and why is it important?

Digital fashion is virtual 3D clothing designed with humans and digital avatars in mind; instead of using fabric and textiles, digital garments are made with 3D computer programs such as Blender and CLO3D. It’s promoted as affordable, wildly sustainable, and accompanied by zero creative constraints or production limitations. The burning question is: how do you wear digital clothes and accessories in the physical world? Digital dressing is deemed a practical way to showcase digital styles, where altering photos and using things like AR and AI can actually enable consumers to wear their digital garments. Digitally native apparel retailer DRESSX, for instance, lets customers upload a photo to the platform for digital dressing in their new look, while social media influencers have an alternative to spending thousands of dollars on outfits and eventually returning it after a photo moment.

💸 Finance buzz

• The cost to make a metaverse platform for fashion businesses varies between $40,000 to $200,000, depending on several factors including the location of the app development organization, development process, UI/UX design, technology stack, and features to be integrated. (Source)

• SG-based luxury fashion metaverse platform ALTAVA, which has partnered with premium brands like Balmain, Burberry, and Prada, signed an MOU with move-and-earn metaverse platform SNKRZ to leverage growing utilities for their NFTs. (Source)

🗣️ Quote of the week

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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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