EYES ON THE FUTURE

HOW THE LUXURY FASHION SECTOR IS BECOMING PHYGITAL (AND MOVING INTO THE METAVERSE & WEB 3.0)

by Katharina Benjamim

Phygital, a portmanteau combination of the words ‘physical’ and ‘digital’ blends the online and offline shopping experience and takes the best aspects from both. While it also provides a unique opportunity for fashion brands to enter the web 3.0 space.

Luxury brands have been introducing phygital fashion to their practices and shifting their focus on providing not only high-quality materials and design but to recreate their in-store luxury experience in the Metaverse.

With eyes to the future, in May 2023, the Metaverse Entertainment World Summit and Awards Show (MEWS) brings to Monaco an insightful conversation about the phygital movement and technology, tapping into the new luxury values taking over the industry, during an exclusive 3-day event at the One Monte-Carlo near the infamous Casino Square.

Celebrating the Metaverse, the MEWS Awards, under the High Patronage of H.S.H. Prince Albert II of Monaco, honours the most outstanding talent, creators, and companies supported by our global Jury. This charity gala will take place at the prestigious Hermitage Hotel on May 4, bringing unpublished surprises about the Metaverse to which fashion personalities were invited.

The MEWS helps to bring attention to the enormous shifts in the Fashion Industry affecting directly its values, purpose and audience. In an era where unique design, attention to detail, durability, exclusivity and know-how become archaic when describing luxury values, a new focus on authenticity, sustainability, innovation, creativity and representation is being adopted by the Fashion industry. This has been vital for companies to remain relevant to their newest and, more demanding than ever buyers, Generation Y and Z.

These generations are quickly establishing themselves as the strong target audience representing a considerable portion of their revenues. Digital fashion already offered customers convenience through online shopping services, and usually highly flexible return options. From about 10-15% of overall sales being online in 2020, it is expected that by 2025 at least 25% of the luxury sales will be online, with 50% of the overall luxury market consisting of Gen Y and Gen Z buyers. Such numbers should increase as companies enable digital good purchases in the metaverse creating a secondary market profit.

This rapidly evolving industry has provided the perfect environment for new trends to burst. In the digital era, when everything is customizable, authenticity defines identity, and sustainability is truly taken into consideration, technology becomes the magic wand to install change as trends such as Online-Offline Integration, Sustainable Fashion, AI and VR, are revolutionizing the market.

Bringing the best of both worlds together, fashion companies are implementing an Online-Offline Integration ‘using Web 3 Blockchain & Metaverse technologies such as AI AR & VR, From phygital assets to interactive mirrors, in-store beacons, mobile apps and metaverse platforms to create a seamless hyperpersonal real-time co-created shopping experience across all channels’ (Prof. Paula Marie Kilgarriff, 2023).

In an interview conducted with Maria von Scheel-Plessen (Senior Marketing Executive), she gave insights on how fashion houses are dictating trends in the phygital movement: “While brands are focusing more and more on omnichannel tactics, it is crucial to act and represent yourself as one brand to the consumer. This is why it is always recommended to think phygital and provide a physical touch to for example digital activations, offer tryons and virtual mirrors and improve the right mix with AI.”

Additionally, she disclosed her thoughts on the future of the industry regarding web 3.0 ‘The Metaverse is a gamification between brands and users, it's a new way of engaging while transitioning from web 2.0 to web 3.0. The digital environment offers real-time adaptation, a test and learns approach for collectibles and limited editions and the dressing of avatars, so it definitely has a lot of unused potential’ (Von Scheel-Plessen, Maria. Interview. Katharina Benjamim. March, 2023).

Companies such as Gucci, Louis Vuitton, Prada, Balenciaga, and Dior are leveraging the power of Metaverse in the future of loyalty and co-creation with its customer by creating fashion phygital NFTs offering an experience in both digital and physical worlds, simultaneously - opening space for fashion start-ups to explore this environment.

This is the case of Phygicode - a consortium and incubator focused on phygital methodologies founded by fashion executive and tech investor Andrea Abrams - presenting a PHYGICODE HERITAGE DRESS in collaboration with Camille Louise's Jewellery - a jewellery house led by Aline d'Ambricourt and Camille Merré, also consortium members at Phygicode, and known as one of the pioneers of Swiss jewellery NFTs.

“Phygicode Heritage Dress” is a one-of-a-kind phygital co-creation featuring an iconic fashion moment by worldrenowned fashion designer Rubin Singer, reimagined for the metaverse in collaboration with Decentraland studio and community members, DigiFun, and will be presented for the first time with a phygital jewelry collection. This presentation by Phygicode and Camille Louise Jewellery will showcase the power of technology to foster collaboration between two designers from different generations,combining fashion and jewellery to represent timeless glamour and merging the physical and digital worlds.

From a sustainable perspective, approaching circular fashion, also tackled in this collaboration, phygital garments are considered apparel that is designed, produced and promoted to last and be reused in not one, but two worlds - physical and digital.

The phygital concept, when combined with the digital revolution, has the undeniable ‘potential to re-imagine fashion as a true ‘Force for Good’ for the planet and humankind’ (The Digital Fashion Group, Jan 2023).

Welcoming young talents and leaders of the fashion industry the MEWS creates the perfect environment for digital fashion creators to have an open conversation in a panel Moderated by Demi Karanikolaou, a Metaverse fashion expert who helps Brands navigate this new world.

The Forbes 30 Under 30 Artist Talia Zoref who has become known for creating Art during Fashion Weeks and who has also lent her brushstrokes to iconic brands and worked with companies such as Chanel, Fendi, Dior and MAC, will be returning to Monaco to join the MEWS for the second time. She is also the creator of the NFT project ‘Eyes of Fashion’, a collection of unique fashion illustrations whose public sale collection sold out in two minutes. The mission of Eyes of Fashion is Bridging fashion and art to Web3 while empowering women through education and innovation.

In conclusion, the fashion giants had an undeniable opportunity to acquire a new audience, providing a fast-paced shift to the market when the topic is Metaverse. Meaning that big fashion conglomerates, or renowned houses, would have to digitalize their presence, and incorporate digital innovation values into their DNA in order to continue relevant to their future customers.

This shift is preparing the way for new fashion houses to explore and reimagine the Metaverse.

The future of fashion retail will be heavily influenced by technology, sustainability, personalization, and ethical values. Retailers who can adapt to these trends and provide an exceptional shopping experience across all channels will be wellpositioned for success as we transition from Web2 to Web3 - and The Metaverse Entertainment World Summit & Awards Show is proud to showcase this revolution.

The Metaverse is a unique place that allows for decentralized 3D Social Media & eCommerce where the future holds numerous possibilities for creators, companies and the audience. Welcome to the creator economy where staking is the new following! Welcome to the Metaverse!