According to a report published this month by McKinsey & Co. on creating value in the metaverse (which increasingly relies on Web3 elements such as cryptocurrencies and NFTs), the longer-term opportunity for fashion brands is “to engage the consumers with NFTs for more pragmatic purposes, such as loyalty tokens or digital twins, [which] can house information about the history, authenticity, and ownership of a physical or digital product, which is especially beneficial for luxury retailers fighting counterfeiting.”
And investments and fashion projects don’t seem to be slowing down. Last week, Endstate, which connects physical products to digital twins via NFTs, announced raising $5.5 millionalong with other digital fashion startups expected to announce funding soon.
Cassatt linked the success of these industrial niches to their utility rather than their inherent monetary value. “Consumers buy a digital asset in the form of a token, subscription, or virtual or wearable item for use in the digital world because they are fans, not because of market trends,” says -she. “We can expect to see these use cases continue to grow in all market conditions.”
Now is the time for new designers to think about how they will enter the space, connect with people to collaborate, test new tools and explore possibilities for creators, says Marjorie Hernandez, founder of the Lukso blockchain fashion-focused and co-founder of fashion marketplace NFT The Dematerialized. “Bear markets tend to rock speculators or short-term projects built without long-term strategies or foundations. Many companies are still hiring in Web3.
A November report from Morgan Stanley estimates that by 2030 the “base case” market for luxury NFTs, i.e. conservative estimates, will range from $3 billion to $11 billion. by 2030. Its “blue sky” analysis is $25 billion, with estimates that metaverse games and NFTs could make up 10% of the luxury goods market by 2030.
what happens now
While the current crisis may have low morale, technologists still envision a Web3 as influential as the e-commerce and social media eras that preceded it.
As Puma Brand Director Adam Petrick recently stated Business in vogue“We’ve left e-commerce in marketing for a bit too long, and it’s put us long behind the eight ball [and] when you think about the sea change brought about by mobile computing and social media…I don’t know if we had embraced that change from an operational perspective, maybe we would be in a different situation now. It’s not that common when there are really technological changes.
Gmoney highlights some of the dot com success stories. “Amazon was created in 2000, Google didn’t even exist until 2001 – they are companies that define the internet. These are companies born out of this recession or a bear market in technology. When you look at the underlying technology, the technology is amazing. And to me, that’s the real story here. So people saying, “Oh, the hype died down,” you would have bypassed the internet in 2001, and it would have gone horribly wrong. And I think that sounds a lot like the same type of scenario.
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