NFT stunts are out: How the crypto bear market resets fashion’s Web3 strategy
According to a report this month from McKinsey & Co. about value creation in the metaverse (which increasingly relies on Web3 elements such as cryptocurrencies and NFTs), the long-term possibility for fashion brands is to “engage consumers with NFTs for more pragmatic purposes, such as loyalty symbols or digital twins, [which] can host information about the history, authenticity and ownership of a physical or digital product – especially beneficial for luxury retailers fighting counterfeiting ”.
And fashion investments and projects do not seem to be declining. Last week, Endstate, which connects physical products to digital twins via NFTs, announced that they had raised $ 5.5 millionwith other digital fashion startups that will soon announce funding.
Cassatt related the success of these industrial niches to their benefit rather than their inherent monetary value. “Consumers buy a digital asset in the form of a token, a membership or a virtual object or laptop for use in the digital world because they are a fan, not because of market trends,” she says. “We can expect to see these uses continue to grow through market conditions.”
Now is a smart time for new designers to think about how they want to enter the space, connect with people to collaborate, test new tools and explore the possibilities for creators, says Marjorie Hernandez, founder of the fashion-focused blockchain Lukso and co-founder of fashion NFT Marketplace The Dematerialized. “Bear markets tend to shake off speculators or short-term projects built without long-term strategies and foundations. Many companies still employ Web3. “
A November report by Morgan Stanley estimates that by 2030, the “base case” market for luxury NFTs, meaning conservative estimates, will range from $ 3 billion to $ 11 billion by 2030. The analysis of “blue skies” is $ 25 billion. with estimates that are metaverse. games and NFTs could account for 10 percent of the luxury goods market by 2030.
What happens now
While the current downturn may have discouraged, technologists are still planning for a Web3 that is as influential as e-commerce and social media eras before it.
As Puma brand manager Adam Petrick recently reported Vogue Business“We kept e-commerce in marketing a little too long, and that put us behind the eight ball for a long time [and] when you think about the step-by-step change that mobile computing and social media brought… I do not know if we had embraced that change from an operational point of view, maybe we would have been somewhere else now. It’s not that often when there are really technological step changes. “
Gmoney points to some of the dot com success stories. “Amazon was built in 2000, Google did not even exist until 2001 – these are companies that define the Internet. These are companies born out of that recession or a technological bear market. When you look at the underlying technology, the technology is incredible. And for me, that’s the real story here. So people who said, ‘Oh, the hype subsided,’ you would have short-circuited the Internet in 2001, and it would have played out terribly. And I think this is very similar to the same type of scenario. “
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