🕶 Metaproof Fashion

Gm fashionistas! This is Sophia from 🕶 Metaproof Fashion, the weekly newsletter where we keep you informed 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

Let’s talk about Gen Z and fashion in the virtual world (Source):

• Gen Zs, according to the 2022 Metaverse Fashion Trends report, say dressing their online avatars allows them to express their individuality (47%) and feel good about themselves (43%). Other reasons are showing off their digital collection (35%), feeling more connected to peers in the digital (32%) and the physical world (25%) as well as being a recognized member of the digital society (24%).

• Nearly 3 in 4 of those classified as Gen Z say they will spend money on digital fashion, with over 1 in 4 having spent from $20 to $100 or more on a single virtual item.

📫 News & trends

👠 Valentino uses artificial intelligence to shoot latest collection

Maison Valentino has unveiled its Essential line, which was entirely shot using artificial intelligence. The collection, created through a partnership between art director Tommaso Garner and AI designer Maria Dal Maso, aims to push innovation by exploring the relationship between AI and fashion, with the campaign imagery suggesting the endless possibilities between the two. It is also designed to encourage reflection on contemporary masculinity and show that many societal expectations of how men should appear and feel have been dismantled.

The collection was said to be inspired by Italian movies of the 1950s and 60s, as well as several subcultures that have deconstructed the traditional thought of the “iron man” and given way to more optionality in how one can dress.

The Essential collection comprises pieces like tailored blazers, bermuda shorts, foulard blouses, coats, pajamas, and more, along with several Valentino Garavani accessories - items said to highlight individual expression with “uniforms of nonuniformity.”

👗 DressX and Dundas introduce second collection for Roblox

The DressX x Dundas Party Drop is a collection of digital clothing inspired by iconic celebrity styles, including five items that provide hyperrealistic and inclusive 3D clothing that fits any avatar body type, thanks to Roblox's “Layered Clothing” technology. The collection features a gold crown inspired by one of Beyonce's Grammy Awards outfits, a metaverse party-perfect embellished dress, a pink 90s mini dress inspired by Barbie, and two logo-embellished Dundas merchandise pieces. In May 2022, DressX became the first pure-play digital fashion brand to launch a collection on Roblox, selling over 50,000 items from its debut collection. Peter Dundas, in partnership with Evangelo Bousis, launched his eponymous brand in 2017 with Beyonce Knowles at the Grammy Awards. Today Dundas appears on many red carpet events dressing high-profile personalities, including the Oscars, Grammy’s, Met Gala, Cannes Film Festival and the Super Bowl Live Halftime show.

💎 Fashion’s foray into metaverse

Fashion brands and retail stores have recognized that entering the web3 and metaverse is a rewarding move for the industry, both financially and non-financially. Many luxury brands have taken the first-mover advantage in the space, players like Nike, Balenciaga, Jimmy Choo, Dolce & Gabbana, Gucci, Louis, Nike, Adidas, Prada, Balenciaga, Tommy Hilfiger, and Ralph Lauren. Fashion NFTs may be smaller in comparison to music, art, and sports but are rapidly gaining popularity.

Dolce & Gabbana's digital auction of the nine-piece Collezione Genesi became the most expensive fashion NFT sold for $5.65M. Adidas created its own platform AdiVerse and launched an NFT collection in December 2021. Gucci also joined a gaming platform to create an experience “Gucci Vault Land'' while Zara launched its phygital collection Y2C Creatures and single collection Lime Glam on Zepeto. According to Dune Analytics, Nike ranks first in NFT revenue with $185M.

Fashion brands on web3 reportedly fetch higher prices than their physical counterparts. Through gaming platform Roblox, Gucci sold a virtual Gucci Dionysus bag for around $4,115, while its physical version would cost about $3,400. In 2022, the global metaverse market was valued at $100.27B, a jump from a valuation of $63.83B in 2021.

💄 NYX Cosmetics introduces GORJS

NYX Professional Makeup has launched GORJS, a community-driven artist collective aimed at promoting the use and perception of digital makeup in the metaverse. The initiative is said to be a continuation of NYX Professional Makeup's digitally focused roots, as the brand was one of the first to focus on developing digital beauty creators. The brand gained popularity by using user-generated content on its social channels, hiring lesser-known influencers for its campaigns, and hosting global artistry competitions. Through this strategy, NYX Professional Makeup has grown its social following to over 30 million.

🛍️ Modern fashion industry and the metaverse world – a match made in heaven

The metaverse has great potential to become a significant aspect of the fashion industry as more brands recognize the mutually beneficial opportunities it offers. With one of the largest consumer bases in the world, fashion has particularly strong synergy with the metaverse, likely achieving great success when both are effectively merged - as they rely on innovation and setting trends to attract and retain customers - and with a shared focus on ownership. Additionally, the fashion industry comprises many well-known global brands and generated revenue of around $2.5 trillion prior to the COVID-19 pandemic, according to a report by McKinsey. Small wonder why the likes of Nike, Adidas, D&G, and Gucci have already started their own metaverse journeys: research firm Technavio estimates that the fashion metaverse will be worth $6.61B in 2026, and predicts that market growth will increase by 30.5% year-over-year.

💻 Scandi brands Rotate and Remain launch in the metaverse

Scandinavian fashion brands Rotate and Remain have released an exclusive collaboration on Monday with metaverse platform Ifland, which was launched July 2021 by South Korea’s largest mobile provider, SK Telecom, and has 12.8 million users today. The sister brands, both spinoffs of the 150-year-old Birger Christensen brand, seek to leverage the metaverse for brand awareness via the collaboration comprising 20 free digital fashion items, including dresses, tops and bottoms exclusively created for the platform (more styles to be released throughout the year). Rotate and Remain are Ifland’s first fashion partners outside of Korea. Ifland - now the second-largest Korean metaverse platform behind Zepeto - expanded to 49 countries, including European markets, in November 2022.

🌕 VeChain joins forces with billion-$-company to build scalable metaverse – report

The VeChain (VET) ecosystem has received a significant boost from various companies such as BOLD, the venture capital fund of L'Oréal, and the British Fashion Council, who have teamed up and raised $4M in a funding round for French metaverse developer Digital Village. VeChain anticipates growing exponentially in the future with the development of Digital Village for retail purposes, with Digital Village founder and CEO Evelyn Mora saying technology is enabling “the next evolution of retail.” The $4M fund is expected to be channeled into building advanced avatar customization and virtual store creation, enabling brands and creators to deliver immersive virtual experiences.

🤔 How NFT gamification can impact customer experiences in the retail industry in 2023

NFTs are proving to be more valuable and useful than just being mere collectibles, and the retail sector is taking notice. Retailers are using NFTs and gamification to engage with digital natives, establish a dedicated customer base, and enhance the customer experience in substantial ways. A prime example of this is Louis Vuitton's Louis the Game. Using "Vivienne," players can go on a quest to find 200 collectible NFT candles to commemorate LV's 200th anniversary, with each candle unlocking stories about the brand's history. The luxury house created the game with the goal of appealing to younger audiences, and is now expanding it with additional levels and NFT raffles as the number of downloads exceeds two million. The company reported higher-than-expected sales due to its active marketing efforts, which tapped into pent-up demand for goods.

💖 BNV announces M3talove collection public mint, the breathtaking NFT collaboration between Weinsanto and LIGHTSUM

Metaverse fashion ecosystem Brand New Vision (BNV) has announced that the public NFT mint of the M3TALOVE collection is now available for purchase using a digital wallet as well as credit card payment. The collaboration among BNV, Parisian fashion designer Victor Weinsanto, and K-pop girl band LIGHTSUM was first announced back in September 2022. The sale, according to its press release, marks one of the first NFT collections in collaboration with a K-pop artist that will be available for anyone to purchase. The six outfits in the collection can be purchased exclusively from bnv.me and come with exclusive digital and real-life benefits from all the collaborators, as part of BNV’s wider mission to improve the accessibility of wearables in the metaverse.

❣️ Passion for fashion

The metaverse is fast becoming a popular destination for consumers, but many brands and retailers are struggling to keep up. Virtuality.fashion, an Israeli startup founded by Amnon Shalev, has created a fashion design app that claims to streamline the product development process by integrating 3D prototyping. This allows brands and retailers to continue working in their usual way, without the need for expensive clothing design software. The company says its system can quickly convert high-resolution 3D fashion simulations, shortening the product development cycle and providing benefits for both brands and customers. Discover Virtuality.fashion, ZeekIt, Donde Search, and other Israeli startups making waves in the fashion scene.

👜 Grishea Drop One

NFT platform Grishea has released Drop One, a collection of 950 NFTs featuring 20 unique designs and targeted at fashion enthusiasts in the metaverse and beyond. This drop, known as the Pyramidal collection, includes a variety of colors and rarity levels. Each NFT represents an investment opportunity for the brand to become a physical entity. The Grishea Fund, which holds 100% of the profits from the early stages of the brand, will be used to fund future brand ventures. Profits from the sale of each Grishea NFT will be directed back into the business and the fund, with the goal of eventually having enough capital to establish the physical arm of the Grishea brand. Holders of certain NFTs will also have voting rights on financial decisions and the development of upcoming projects, and all members of the fund will have exclusive access to the brand's development progress.

♻️ Hybrid shopping is fashion consumers’ conscious choice: EPAM continuum

Global design firm EPAM Continuum's survey has revealed that hybrid shopping became a popular choice among fashion consumers after COVID-19 restrictions were lifted, with buyers seeking out sustainable fashion products. Affordability, however, remains a priority. Many shoppers are becoming more aware of brands' claims around sustainability and are looking for more sustainable options, even among those who regularly purchase fast-fashion items. Brands that can offer a combination of ethics, sustainability, quality, and value without requiring customers to put in extra effort are more likely to succeed, according to the survey. When it comes to new technologies, attitudes to the metaverse varied by level of exposure to it, with those who have little or no experience of it were more likely to be skeptical of its wider impact. German shoppers were the least likely to be aware of the metaverse as well as be most concerned about the impact of society spending more time online.

💸 Finance buzz

• House of Blueberry raised $6M in seed funding for its digital fashion business in the metaverse and interactive entertainment, using the money to expand partnerships with new games and online worlds to reach a broader audience. Founded in 2012 by Mishi McDuff, House of Blueberry has sold over 20 million digital assets across platforms such as Roblox, The Sims, and Second Life under its own brand. (Source)

• The VeChain (VET) ecosystem received a significant boost from various companies such as BOLD, the venture capital fund of L'Oréal, and the British Fashion Council, who have teamed up and raised $4M in a funding round for French metaverse developer Digital Village. (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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