FASHION INDUSTRY TEN YEARS FROM NOW
Fashion Industry in the Future
The fashion industry has always been at the forefront of innovation. Whether that be the transition into web3 or dropping NFTs, the fashion community constantly adapts to the ever-changing market and the technologies that come with it.
Looking into the future of fashion, noticeable trends are emerging that will define the next decade of this industry. Brands are becoming more ecologically aware and technologically savvy. At the same time, with the growing presence of all generations (especially Gen Z) in web3 and virtual worlds, the lines between the real and digital are slowly erasing. These changes will not only impact the industry but also redefine the meaning of style itself, changing the way people interact and embrace fashion.
Currently, one of the biggest buzzwords in fashion is web3. As fashion brands branch out to meet the younger clientele, they are also pushed to innovate and familiarize themselves with the platforms in which that target audience spends their time. For Gen Z, that space is in virtual worlds.
Most brands start with creating a digital twin as NFTs for the physical items they’re selling. In comparison to the high-priced physical products, the digital item is far more financially accessible to the younger generation. Dolce & Gabbana did it with Collezione Genesi, which sold for a whopping $5.7 million in auction. This allows legacy fashion houses to establish brand awareness while still being relevant to their standard community through physical stores. Other successful “phygital” NFT launches include Prada’s Timecapsule NFT Collection and Tiffany & Co.’s NFTiff.
However, the web3 experiments don’t stop there. Fashion houses are creating worlds and experiences for their communities to explore. Louis Vuitton developed its own game, Louis The Game, where users can travel through different virtual worlds and collect tokens along the way. Nike built its Nikeland within Roblox, allowing its community to try on products in its digital showroom as well as purchase NFTs. Gucci’s Gucci Town is also present on the platform. Earlier this year, Decentraland held the first-ever Metaverse Fashion Week, with over 60 brands (Dolce & Gabbana, Tommy Hilfiger, and more) showing their new collections.
To support these virtual experiences, brands are utilizing and endorsing VR and AR. It’s not surprising – as per Deloitte, 71% of shoppers state they would shop more often if they used AR apps, and 61% of those surveyed say they choose stores with augmented reality over those that don’t have it.
Among the legacy fashion houses propelling this tech is Burberry, which launched an AR tool with Google, allowing consumers to “see” the brand’s selected products in the environment they’re in. Adidas let sits customers try on some of its shoe models virtually through its app.
Moreover, there are a plethora of fashion brands that have spawned entirely on this technology. For instance, DRESSX is a digital fashion company where you purchase pieces that you can later wear with the help of AR tech.
With the brands expanding their digital presence, experimenting, and launching virtual stores, overall e-commerce is growing globally. Of course, that brings on new trends in and of itself.
China is currently living through a live video e-commerce market boom. So much so that a16z’s Connie Chan coined a specific term for it – shopatainment (entertainment + commerce + content). The concept is simple: through video streaming, sellers showcase their products to customers, who are casually browsing through those videos as a form of entertainment. Live shopping is already worth $137 billion a year in China and, with the importance of establishing an authentic relationship and an emotional connection between the seller and the buyer, it will only continue to grow. A similar pattern will be observed across all markets globally, especially as technology becomes more accessible to people and the impediments to entering the digital world become lower.
Other innovations like artificial intelligence can make the industry more personalized and offer more customization. Imagine you’ll be able to design your pieces of clothing based on the style, fit, and material you desire. At the same time, that and similar technology can become embedded into clothing itself.
Although it’s hard to predict how exactly the fashion industry will look 10 years from now, its development will depend on the ability to identify and embrace innovative technologies, create great products using those tools, and offer unique experiences for consumers to enjoy and explore those products in. Ultimately, what connects these pillars together is community – the brands that build their ecosystems around their customers will be the ones that flourish within the next decade.
Author: Anouk Dyussembayeva