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Why fashion brands rely on virtual luxury
NFTs are the rage. In recent months, more and more fashion brands have discovered non-fungible tokens, or briefly NFTs, thus paving the way for a new income channel with potential.
The longing has been around for a long time: the internet’s 3D vision that can be experienced in pictures has been haunting science fiction literature since the 1990s. The first model – albeit somewhat simplified – is about 20 years old. Some will still remember Second Life. Virtual Wonderland first appeared in 2003. Basically, it is a 3D simulation whose design is entirely based on the users. They paint the terrain, design homes and shops, and make clothes for the avatars that inhabit the world.
At the platform’s heyday in the late 2000s, Second Life had just over a million monthly active users. Countries have set up embassies, media companies have opened offices, and brands have opened stores in digital malls. Duran Duran Concerts are presented on virtual platforms. Experts agree that “the idea was good, but it was simply too early.” In the 2000s, blockchain, cryptocurrencies, and non-fungible tokens (NFTs), such as digital VR glasses and virtual reality goggles, were a thing of the future.
Kickz starts with NFT licenses
Athletic shoe and streetwear retailer and NFT startup TFC are working together. In the future, users will be able to buy and exchange digital costumes and merchandise on the NFT The Football Club marketplace. Collaboration that will give impetus to future customer communication.
It’s all there today. For everyone – if Zuckerberg had his way. Creative minds and companies around the world must work to integrate physical and virtual reality: “This future goes beyond one company. We will shape it all.” It could reach a billion people and enable hundreds of billions of dollars in digital commerce over the next decade. So a profitable future market?
While Meta, Microsoft, Epic Games, and Roblox want to sell their Metaverse ideas, many companies can’t assess how a business should actually look and operate, let alone strategize for it. Some just did not understand the vision. Recently, Prada descendant Lorenzo Bertelli smiled when asked by a financial analyst what Prada plans to do with the Metaverse, and he replied, “The Metaverse is like social media. I know exactly what we need. I’m not nervous at all.”
It’s still a topic for early adopters, but the hype is picking up fast. Brand new playing field. Literally. Because gameplay is an essential key to the Metaverse. Computer games such as The Sims or Animal Crossing have shown that virtual worlds can be an effective platform for organizing brands. “Many people have a stronger inclination to play than they thought. Let’s take a look at the Zwift e-sports platform. Up to 50,000 cyclists compete against each other here every day. Equipment becomes a competitive advantage and you can improve your avatar even better,” says the tag expert Brand Matthias Ulrich, Managing Director of Liganova’s retail agency, “Bikes, T-shirts and Helmets.” “This often has an impact on real buying behaviour. Best advertising space for brands.
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Dolce & Gabbana and NFT Millions
The experimentation phase with non-fungible tokens or NFTs is over. One-of-a-kind digital business has become a profitable business for the fashion industry. Luxury brand Dolce & Gabbana has sold its first collection of NFT by auction for one million euros.
Nike is one of the early adopters. In collaboration with the gaming platform Roblox, Nikeland, a virtual world based on the company’s headquarters, has now been created. Users can try out mini-games like tag and dodgeball with friends, while transmitting realistic moves into the game via their smartphones. They earn virtual backpacks or hats from Nike. In the digital showroom, users can also order clothes for their avatar. The game will be revived via Snapchat at the Nike House of Innovation in New York City in December. Snapchat’s special lens turns the room into an augmented reality version of Nikeland. Vans is also represented on Roblox with a virtual skate park.
Roblox is growing rapidly: more and more players are programming their own games and making them available to others. From a Counter-Strike clone to a Burger Fry simulator, you can find every game idea imaginable here. In the third quarter of 2021, the company had 47.3 million active users per day. Young users. Tomorrow’s customers?
Join the Metaverse: Adidas has teamed up with NFT professionals and crypto influencers
Adidas follows suit. “Today we jump into the Metaverse. It’s time to step into a world of limitless possibilities.” With this tweet over the weekend, Adidas Originals announced the launch of their Metaverse strategy. “What do we want to achieve there? We want each participant to be the best version of themselves. The Metaverse is a place where everyone can present their original ideas and live their real lives in whatever form. Thanks to the blockchain (and NFTs) all participants can also secure ownership rights to their creations.”
“The Metaverse is currently one of the most exciting developments in digital technology and therefore an interesting platform for Adidas.”
To this end, Adidas enters into partnerships with giants from the crypto world: Bored Ape Yacht Club (NFTs), Gmoney (an influencer in the crypto space who is considered one of the most important voices in the NFT industry) and Punks Comic (crypto comics). The group also collaborates with cryptocurrency exchange and blockchain game The Sandbox. What does all this mean? How will Adiverse work? “The Metaverse is currently one of the most exciting developments in the digital sector, and as such an interesting platform for Adidas,” a company spokesperson says when asked by TW. Does not owe more details.
Sandbox is a virtual blockchain game and although it only launched in November, it already seems clear: it has the potential to convert billions.
Morgan Stanley analysts estimate that the demand for 3D virtual worlds and products will gain momentum, bringing the fashion industry $50 billion in additional revenue by 2030. Want a little taste? In its Roblox game, Gucci not only distributed virtual avatar items for free, but also sold them for the equivalent of a few euros. As some of these products were hard to come by, the distributors market immediately developed. The hypothetical counterpart of the Queen Bee Dionysus handbag fetched an impressive price tag of around $4,000 – almost double the price of the real one.
Interview with digital expert Richard Hobbs
What is behind the hype NFT?
So-called non-fungible tokens, or NFTs for short, are the thing of the watch. What is behind the cryptocurrency innovations, does the hype continue and what does this mean for the fashion industry? Insider Richard Hobbs answers the most important questions.