Although shares of LVMH and other luxury brands soared during the pandemic (in the belief that the rich will still buy regardless of the economic situation), a stark change has occurred. are observed in connoisseurs’ shopping habits.
With shops and restaurants closed due to the coronavirus pandemic, showing off that latest “it” bag entirely on Instagram seems like a pyrrhic victory.
And not being able to see the envious gaze on the face of another great friend who didn’t reach their foot in this season’s couture feels a bit unreal.
If the whole purpose of owning a luxury item is to flaunt it – flaunt it gives you it – then the pandemic poses an entirely different set of challenges for jetpacks and people alike. wear and equip them.
Certainly, very rich people can still continue to buy clothes, and in many cases did.
But fatigue has been noticed at higher levels of the fashion spectrum, especially couture, with the majority of events taking place virtual, and through Zoom, the shooting of that prom dress appears to be. unnessary.
However, even as the coronavirus pandemic raged outside of our homes, one branch of fashion worked exceptionally well – costumes for virtual avatars and skins for in-game characters electronic.
The business of virtual items in video games is estimated to be worth about US $ 50 billion, most of which in the form of character skins or costumes, the rest includes weapons, armor, and abilities. special function.
Since more people than ever before in recent history were confined to their homes, the concept of digital life has become solid.
A captive audience has several options beyond Netflix and video games, and this has fueled a revolution in what could be the next frontier of luxury fashion.
Because what’s the use of the latest couture if no one is there to see you in person?
The interface in the game is not new and has been exchanged and sold for as long as online role-playing games have existed.
Players can put their avatars in exclusive outfits and outfits, decorate and embellish their digital selves in ways they could only dream of in real life, but spend Real money in the process.
And the world of luxury is now hunting for the possibility of high fashion expression with cryptocurrency.
When The art world has been stormed by NFT or irreplaceable tokens – essentially unique tokens binding ownership of a work of art, video or any other digital asset to a specific digital wallet address, thus defining ownership – The fashion world is just beginning.
Fashion brands that have seen their sales plummet because of the pandemic, are now ready to jump into the world of the NFT.
Based on Vogue BusinessItalian fashion house Gucci recently confirmed that “it is only a matter of time” before a brand like Gucci launches an NFT.
And the fashion magazine has confirmed to many industry sources that several high fashion brands are also about to release NFT.
Because high-fashion firms have gone behind the curve when it comes to e-commerce, replaced by digital portals like Net-a-Porter, they are now more open to public considerations. blockchain technology to boost your luck.
If you’d like to call it the case of digital FOMO (fear of missing out), but in recent months many fashionistas have been talking about NFTs and what can be done to integrate them with haute couture. more than ever.
But with fashion, the cryptocurrency connection isn’t always immediately obvious.
For starters, digital assets like art to music fit the NFT perfectly, but fashion is a very sensitive medium.
Because a photo of someone wearing an outfit completely different from the act of actually wearing it, luxury fashions only glide over the surface when it comes to possibilities behind blockchain technology.
The emperor did not wear any clothes
For fashion, the NFT use case is still in its infancy.
The whole point of fashion is to wear it – but for now, luxury brands are actually seeing it from the lens of fashion as an art – that is the only link with the NFT at the moment.
But if fashion is to be worn, then what digital fashion should our ourselves wear?
The coronavirus pandemic is said to have reinforced our digital self-image and that customers are more willing to spend on digital goods than ever before.
Currently, fashion sold through the NFT is just art, with limited utility.
While brands are selling GIFs of clothing models, buyers really can’t help but admire them.
But if the NFT can be tailored for luxury fashion houses to wear and wear into a customizable avatar that can run, jump, duck and shoot on any one of the video games, then This untapped customer base and potential revenue stream could be a potential game-changing factor.
On DecentralandA decentralized digital reality, players living in avatars can purchase the fashionable NFT on Decentraland’s wearable market.
But a recent stroll in the wearable market has revealed a slew of animated and pixelated outfits, with the game itself lacking the poise and polish most gamers have claimed to be. of course.
To make matters worse, the complexity of setting up a browser-based Ethereum wallet called Metamask, may not appeal to everyone but tech-savvy high fashion shoppers. Best.
But all that is likely to change as companies learning about everything blockchain try to connect the digital block many high fashion brands seem to have when they understand this new technology.
And where fashion can make a transition to digital is through digital fashion interfaces.
Imagine your next Fortnite (a hugely popular online royal-style first-person shooter game) the character discovers Gucci’s newest “must-have” bomber jacket.
But better yet, imagine that the jacket was an NFT limited to just 500 pieces and tagged on to the physical item and suddenly the physical-to-digital crossover creates a number of swaps. taste and possibilities seem limitless.
NFT has the potential to create digital scarcity, especially in the context of the richness of the internet.
And one of the best ways to create scarcity is to label physical fashion with digital fashion.
Video game-streamers with more followers than some celebrities are obvious models for both digital and physical fashion brands of the future.
And with esports tournaments slowly returning, professional gamers, with their cult fans, can help boost sales of luxury brands by showing fashion in person and on their own. in their game streams, at the same time tagging NFTs for that exclusive looks outfit series that lives, creating a need that was not previously available.
Last year, sportswear brand Adidas caused fever in the gaming community when it released Cyberpunk 2077 sports shoes, quickly sold out.
Likewise, professional gamers can dress up the latest chic outfits for their next stream or tournament, and the NFT can be woven into the very texture of the gameplay lifestyle releases. The game is so limited.
Sure, luxury fashion and video games are familiar items.
But considering that some of the most reputable fashion brands have quickly embraced the sporty trend, embracing professional gamers and streamers, and their captive followers, is no exception. vi worth thinking about.
The pandemic has created an opportunity for luxury fashion houses, some of them centuries old, to rethink not only their existence but also their legacy in the increasingly digital world. develope.
By Patrick Tan, CEO & General Advisor of Novum Alpha
Novum Alpha is the quantitative digital asset trading arm of Novum Group, a vertically integrated group of blockchain and digital asset development companies. For more information on Novum Alpha and its products, please visit https://novumalpha.com/ or email: [email protected]