Digital disruption in fashion and luxury industry: Metaverse and NFT
Explanation: Because of the enormous potential that these digital technologies provide to stakeholders across ecosystems, Metaverse and NFT appear to be poised to take over the fashion and luxury categories.
Metaverse and NFTs
Metaverse and NFTs have produced a completely new digital economy based on virtual interactions and experiences in the digital realm. These areas present an enormous opportunity for all players in the business environment, resulting in a win-win situation. Unsurprisingly, businesses are rushing to adopt metaverse platforms and create digital avatars for their products.
If you’re still not convinced, consider the following figures from Gartner, a consumer research organization that conducted an extensive study into the metaverse and NFT scenario and came up with the following conclusions:
- At least 25% of the world’s population will be exposed to NFTs and metaverses by 2026.
- 30% of businesses will have their products/services available on digital channels.
The numbers are optimistic, and based on present trends, we appear to be on the verge of a digital revolution led by metaverse and NFTs.
Fashion and Luxury Segment Applications
While the business potential for metaverse and NFTs is enormous, these technologies are impacting the global fashion and luxury sectors in particular. Digital fashion trends have begun to emerge, and as individuals divide their time between the virtual and actual worlds, demand for virtual luxury products is increasing significantly.
Fashion designers, buyers, and businesses, in particular, are enamoured with the desire for digital fashion in the form of digital assets such as NFTs, with all stakeholders finding these technologies more appealing and gratifying.
Trends and Developments in the Industry
NFTs on different metaverse platforms have the potential to become a gamechanger in the luxury and fashion sectors, given fashion plays such a vital part in establishing one’s self. The industry appears to agree, as seen by movements taken by all major luxury and fashion labels to devote their complete attention to the metaverse and NFTs.
Consider this: In December of last year, Nike, the world’s largest sportswear company, purchased RTFKT, virtual collectables, and footwear brands in order to enter the metaverse.
This growth indicates that fashion businesses are seriously considering entering the virtual arena and putting up efforts to acquire digital regions ahead of their competitors.
It’s also worth mentioning that at the 2021 New York Fashion Week, premium companies like Jimmy Choo and Dolce & Gabbana debuted their own NFT collections. UNXD, a renowned boutique that produces designs for various notable companies in the luxury arena, conceptualized Dolce & Gabbana’s nine-piece NFT collection.
Fashion Week in the Metaverse: The Beginning of a New Era
Given the massive influence that metaverse and NFTs have already had on the fashion industry, it’s only reasonable to expect them to migrate to metaverse platforms. Indeed, this partnership has resulted in the creation of “Metaverse Fashion Week,” with many more such events planned for the following months and years.
The vast scope that metaverse and NFTs have in the luxury fashion categories of the market is demonstrated by the success of one such event, “Metaverse Fashion Week,” organized by Everyrealm on February 14th, 2022, with 40,000 attendees.
Stakeholder Incentive Programs
Another primary reason driving metaverse and NFT growth is the enormous amount of creative options these technologies provide for stakeholders across business ecosystems. Consumers receive access to distinctive, engaging, and immersive experiences that are equally unique and exclusive, while creators and businesses get an opportunity to connect more closely with their customers.
The cornerstone for a self-sustaining ecosystem is a mutually beneficial partnership in which all parties benefit without any stakeholder surrendering their interests. Metaverse and NFTs are assisting in creating such a self-sustaining ecosystem, which explains their enormous popularity among members.
On metaverse platforms, the NFT collection provides a novel approach to engaging with a more extensive and diversified range of customers. Given the recent success we’ve seen in the metaverse and NFT realm, it’s safe to assume that digital fashion and designs will continue to thrive in the future.
Of course, these expanding categories come with creative and technical obstacles (e.g., interoperability), but these concerns may be readily resolved with the support of a collaborative approach. According to industry experts, metaverse and NFTs are the future of the luxury and fashion segments. As businesses seek new ways to connect with clients, metaverse and NFTs can allow them to experiment with hybrid/virtual goods and items.