360 CAMPAIGN RESEARCH
KRISTA HELLON
The luxury market.
-According to Arizton Advisory and Intelligence, the luxury fashion market has a bright future ahead of it, driven by the growing demand from millennials and Generation Z. -Rapidly changing technological landscape and increasing adoption of technologies such as augmented reality by the fashion industry, aided by the adoption of digital channels in developing regions, are supporting the growth of the market.
https://luxus-plus.com/en/luxury-fashion-market-expected-to-reach-153-97-billion-in-revenue-by-2026/
- Key drivers and trends fuelling market growth: leveraging augmented reality, internet shaping purchasing behaviour, increasing acceptance by millennials and gen z, rise in travel and tourism. - Major vendors – aramni group, burberry, chanel, Hermes, kering, lvmh, prada group
https://www.prnewswire.co.uk/news-releases/luxury-fashion-market-size-to-reach-revenues-of-usd-15397-billion-by-2026-arizton-843791290.html
https://www.hausvoneden.com/lifestyle/neo-luxury-2025-trendstudie-verkuendet-die-neue-aera-der-luxusindustrie/
-“Established luxury companies are required to rethink, adapt or even radically develop their existing business models” - Luxury brands, luxury customers, understanding of luxury – everything is in dynamic motion. - Expand digital competence -Make customer centricity the strategic core issue -There are 3 central driving forces behind NEO luxury: a sense momentum, an innovation momentum and a dispersion (=broadening) momentum. - The digitalisation of luxury including the digital detox counter-trend – 71% relevance with digitalisation ranging from digital products / services to e-commerce, digital marketing and digital added value in the customer journey, such as augmented reality solutions.
https://www.theoystercatchers.com/posts/the-future-of-luxury-in-2022
1. Ethics over aesthetics – consumers are now, more than ever, valuing brands based on their sustainability, diversity, ethical practices and inclusion (Bain & Co). These values are expected and crucial. State of luxury research – saw the importance affluent consumers put on these values, and they are willing to pay more for brands / products that demonstrate these values. Ethical and sustainable practices need to be communicated and backed up by proof. The customer wants to be educated and they are listening. 2. Human connection playing a big role in brand advocacy & loyalty – human connection is growing in importance for luxury consumers post-pandemic. Whilst a personalised human approach has been at the centre of the luxury sales in-store experience, not post-pandemic, human emphasis is offline and online. Facebook shared how various brands are creating one on one human experiences through their Facebook messenger feature, as well as through whatsapp. 3. Second-hand luxury is rapidly growing – “second life of luxury” – Bain & Co. They mentioned the growth in the demand for rental and second-hand luxury is huge and will only continue to grow. 4. Social commerce is growing rapidly – According to Facebook, social media is becoming a key shopping platform for luxury as shopping habits evolve. Their research states that 54% of luxury consumers used social to shop for the first time during the pandemic. Furthermore, luxury consumers shop on social media 3.3x more than the average non-luxury consumer. 5. AR (augmented reality) & VR (Virtual reality) supporting luxury shoppers purchase – According to Facebook 21% of luxury shoppers have used AR/VR devices before, 14% have already used AR/VR to make a purchase or explore a product. Furthermore, luxury shoppers are 1.9 more likely to desire an in-store experience and 2.2x more likely to want innovative technology such as AR/VR to experience products. For example, Gucci’s virtual trainers and Chanel’s AR lipstick experience are a few brands who have tested this space, but the possibilities are endless. 6. “Localisation is the new globalisation” – Anya Hindmarch 7. Chinese spending is going to be repatriated 8. Luxury brands need to lean into DNA to disrupt – Luxury brands creative approach is so often the same. Luxury needs to stop copying each other. Instead, brands should lean more into their DNA. Focusing on the story of the brand: the founders x the place and era x the purpose and act of creation x the audience.
https://www.underscore.co.uk/the-future-for-luxury-brands-is-digital/
-As consumers become more and more at home online, luxury brands must continue to innovate. By using personal data, social media, new technologies and a variety of other digital tools, these brands can form better connections with consumers than ever before. Brands cannot ignore the opportunities available to them online: the luxury sector is no exception. -Brands began to place more emphasis on their values, instead of only their product. - Brands began to realise that people were looking for more than just a good product or an established brand name. They wanted to wear brands that told a positive story and endorsed values such as sustainable business. Due to this, many luxury brands turned to enhancing their brand narrative to cater to the new age of consumers.
https://medium.com/predict/the-present-and-future-of-luxury-brands-acc6d9fa9f
- A digital presence is vital in order to be ready for a situation where physical shopping is in decline. - The need for digital transformation is clear when looking at the resilience of online luxury buying. - How will the luxury brands evolve over the next few years? – Designer collaborations – moving forwards collaborations will be the next big thing in the luxury space. - Sustainability – today’s luxury consumer is seeking to express who they are, rather than what they have. The new luxury lifestyle is about being ethical, connected and philanthropic, because this is what the consumer wants to reflect through the items they purchase. - Experimental Luxury – Today, customers prefer to invest in luxury experiences, as opposed to luxury products. Moving forward, luxury brands should focus on creating luxury experiences over and above their goods (Balenciaga video game inspired lookbook). - In conclusion, the luxury market is changing. Luxury brands must keep up to date with these changes by implementing sustainable business strategies and focusing more on the overall luxury lifestyle of their consumers.
The metaverse & NFTs. The metaverse – “a shared 3D space where users can see other people, interact and share experiences”.
-‘Metaverse as the new marketing territory for visionary brands’ – brands that can provide compelling in-world experiences, from games to desirable digital objects are set to win. - The gaming trend – opportunity for self-expression - This shift signals urgency for brands to generate innovative formats and ways to reach their audiences and interact with them. - “Digital theme parks” + “the most important media businesses of the future”. - Brands should consider how they can bring added value to these virtual worlds, if they are truly in tune with the cultural zeitgeist. - Because for today’s consumers, their digital worlds and experiences have as much meaning as the real world and physical experiences, promoting brands to offer meaning across both worlds if they don’t want to lag behind. - Customers won’t settle for just talking to brands on social media, but they will also get to interact with them in 3D form. -
The metaverse is also about identity that definitely goes above and beyond.
- Virtual fashion houses and designers have a great opportunity to enter a brand-new market of digital-first clothing.
- Gucci – appeared on animal crossing, tennis clash, the sims, Pokémon go and Genies. - Valentino, Burberry, Balenciaga, Net-a-Porter and Tatcha are among other luxury brands that have created virtual spaces during the Covif-19 lockdowns. - IMVU – online metaverse and social networking site – recently hosted a first of its kind virtual runway show that featured real-world fashion labels. - Skins in Fortnite have turned into an interesting new terrain for brands as a 2019 Samsung campaign showed. - Clinique has entered the digital shopping world with the skin school x Clinique laboratories – a computer generated metaverse, hosting videos featuring Clinique experts, virtual skin classes and taking visitors behind the scenes of Clinique’s beauty products. - Marketing and communications professionals must watch the metaverse carefully because it’s the next level of online interactions – it is deemed to revolutionise the online marketing scene as social media did before. - There will be more opportunities for people to connect in exciting digital worlds as virtual reality technology advances. - Brands can participate in many ways, but key to the success of virtual brand worlds will be a combination of convenience, personalisation, fun and authenticity. - Marketers should be wary of brand safety pitfalls to prevent reputa tional risks in the metaverse, since these have been an issue on social media. - Brands that will provide compelling in-world experiences, from games to desirable digital objects, are set to position themselves advantageously in what is soon to be a very competitive landscape.
- Brands – expanding digital presence in the future – the opportunity for fashion in the digital world is massive. Immersive formats will reimagine what the fashion industry looks and feels like for the consumer. - How AR content strengthens the relationship between designers and their consumers. - The appetite for NFTs is only growing, with many companies in the digital space, like epic games and the fabricant, helping brands develop digital garment collections and archives to push them into the metaverse at an accelerated pace. - The idea of 3D experiences is to then let brands have a presence virtually wherever they want. It could be on their website, or it could be through AR glasses. The end goal would be to try on a specific product and to be able to buy it. E.g., Ferrari, virtual production for ads, Fortnite – so that players could drive it and test it virtually that way. - Creating 3D assets doesn’t just mean more realistic imagery for its online space, but it heralds a commercial opportunity for all of a brand’s goods in the NFT space. - Will the sustainability issue with NFTs be solved? - What’s next for brands launching into the metaverse? The notion of access to the digital space is still difficult for those with traditional fashion backgrounds, making growth and innovation in the space slower than the demand of the industry. - For many, the shift to technology takes years to master. After observing the space, the fabricant is launching a new platform called The Fabricant Studio, where users without 3D technology knowledge can create digital items and mint their own NFTs. - The vocab of the future: NFT – a non-fungible token, or a unit of unique data stored on the blockchain system that can be traded and sold. Most digital files can become NFTs, but in the fashion industry, NFTs have mostly been through imagery.
- For brands like Louis Vuitton, Gucci and Burberry, participating in the cultural zeitgeist might be more valuable than immediate monetary gain, as former chief digital officer of LVMH recently told vogue business. - “It’s all about culture, and NFTs are having a cultural moment” Burberry’s Weller says. “I don’t think there’s anything wrong with leaning into moments in culture and experimenting. We have to be playing with all these things. Its more about being aware of the culture and the conversation, as much as the technology. Otherwise, the tendency can be to get excited and carried away by technology, but actually understanding the culture and how you can show up in a relevant way with technology – this is the sweet spot.
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- The metaverse, a virtual space generated by the convergence of virtual worlds, augmented reality and internet services is coming and it’s going to change everything. - By revolutionising the way humans interact and live their lives the metaverse will redefine what businesses are and how they should operate. - Some companies are watching and learning – those that don’t will be left behind. - Accelerated by COVID-19, generational changes and technological advancements, internet users are increasingly socialising, playing and shopping within virtual worlds. Some brands are using this as an opportunity to expand their offerings to include fully immersive digital experiences. - For example, Gucci, which recently unveiled Gucci Garden, an immerse multimedia experience where users of online gaming platform ROBLOX can explore and purchase goods. Reflecting the value that exists within virtual platforms, a limited-edition digital Gucci handbag available through the experience sold for more tan $4,000 more than its physical equivalents value. - This is not an isolated trend, Louis Vuitton and Burberry have expanded into virtual reality through partnerships with high-profile games. - From a brands perspective, this gives companies the opportunity to offer their goods within two mediums: the physical world and the virtual world -This new space offers an arena where users can become both virtual and external brand ambassadors. The metaverse will allow companies to break from convention and create a world that is totally unbounded by the existing limitations of physical space. Brands will be able to create experiences that couldn’t occur in the real world, fuelled by imagination and creativity.
- In a world where physical retail is suffering, the metaverse offers businesses an opportunity to pivot, integrating their physical and digital offerings, to reclaim what it means to sell to customers. - This could take the form of integrated digital and physical quests that will allow customers to search for branded items in the metaverse, while completing tasks that will also take them to in-world shopping destinations to complete actions or collect their winnings. - “The physical and digital world will become indistinguishably integrated” - In a world where physical retail is suffering, the metaverse offers businesses an opportunity to pivot, integrating their physical and digital offerings, to reclaim what it means to sell to customers. - Offering NFTs, digital certificates of ownership that have seen a massive rise in popularity this year, will be essential for businesses looking to make waves and create a brand identity in the metaverse. - Players in the metaverse gain social capital through ownership of items whose value is verified and whose rarity is known. Brand will need to offer players who wish to buy a pair of limited edition of digital sneakers, for instance, the certificate of authenticity that proves that they own this digital asset. - In order for the concept of ownership to have meaning and longevity in the metaverse, NFTs will be key. - Over the next decade, technology will develop so much that the physical and digital world will become indistinguishably integrated. - As brands pivot to align themselves with this new future, it is essential that they redress their focus to create user-driven immersive experiences that place ownership, creativity and inclusivity at the heart of their missions.
- NFTs – NON-FUNGIBLE TOKENS – their uniqueness that make them so valuable. NFTs are about to profoundly change the world of luxury fashion. Scarcity is the basis for both the luxury market and NFTs. Just like in the fashion and art world, NFTs are all about collectibles. NFTs now bring a new level of exclusivity and also an opportunity to turn digital designs and collections into highly scarce, valuable, luxurious and unique collector pieces. - While customers self-expression used to be only physical, it is now merging with the virtual at an accelerated pace. The most straightforward example of a product NFT is when the asset is the digital twin of a real-life product and has its own value. - Luxury fashion companies like Gucci have already announced they are launching their own NFTs. - Until now, the idea of spending real money on virtual clothes was farfetched, however this mindset is changing rapidly as millennials, gen-Z and generation alpha enter the luxury market. - Customers will soon be able to create images of themselves wearing 3D clothing and then share them on social media.
- As all luxury brands know, customers do not buy yet another pair of expensive shoes or a handbag because they need it desperately. They acquire expensive items because they want to be part of the luxury culture, heritage and unique story that a certain brand has built. NFTs are like social assets that can offer customers a certain status, and they offer a new market for traders and investors. - The future of art and design is a highly hybrid future that mixes traditional physical expressions of originality and creativity with highly digitalised ways and means of selling art. - The future of NFTs will likely also be linked with virtual and augmented reality, and soon you will be able to view your rare collector piece like Raf Simons parka in your own house. - The creators of NFTs can receive royalties every time their creation is sold or changes hands. In the past second-hand markets struggled with attracting the most exquisite buyers and collectors. NFTs could change the rules of this luxury game forever as they are meant to be timeless. - NFTs will also impact advertising and digital storytelling as consumers are increasingly more interested in stories behind the brand they buy. - Up and coming brands in the fashion and art industries should follow along with NFT updates and other similar trends. - Collaborations with famous fashion designers and artists could be one way of tapping into this market. - Launching a few unique NFTs to test the waters could also be a good early adoption test. If designed and marketed properly, various forms of creative works can be turned into collector items. - Brands that are already using NFTs today allow users to acquire unique digital artworks and digital collectibles like albums, gig tickets, clothing, original forms of art and even unique experiences. - Memorable items can increase customer loyalty. One-off experiences and unique moments in time can now be captured, exchanged and treasured, which is something that all brands could use to establish a much more permanent tie with their clients. - Ephemeral items fade away, but a collector piece is a much stronger tie to a specific brand. - NFTs are surely a new tool that is bringing us a step closer to eternity.
- A few prominent challenges that luxury faces are that of counterfeit goods, verifying authenticity in case of second-hand goods market. - Highsnobiety found that only 6 percent of their readers stated that they purchase products as a direct expression of wealth. This means that the value of a luxury item is today less than ever defined by its price. Instead, “new characteristics related to knowledge consistently score higher than reductive notions of cost”. - Consumers now want to be well informed regarding the provenance of items and want assurance and easy accessibility to a product’s knowledge. - Attention needs to be focussed on simultaneously integrating the physical scarcity of luxury goods with its digital presence. The digital scarcity of truly one -of-a-kind products will then also alter the nature of their physical scarcity world. An act that might see convergence in the coming future. - This is where non-fungible tokens (NFTs) can revolutionise the luxury market. - Luxury is a business model based on rarity. In the case of NFT’s – scarcity is an important ingredient in the recipe that makes it so attractive. NFTs provide a token with a unique digital identity. This in turn makes a digital item valuable through verifiable scarcity. - By pairing an item with an NFT, we can know algorithmically that no additional copies of that item can be created. - Due to the counterfeiting and consumer trust issue, blockchain technology addresses a real market need. Verifying authenticity and establishing a clear ownership history helps to increase this trust.
- The rise of metaverses has impacted the adoption of NFTs, as the world is moving closer towards visions of a future defined by augmented reality. As such, NFTs are further demonstrating the convergence of culture with technology, which in turn is having an impact on a number of mainstream industries. - Showcasing culture and community – high-end fashion brands such as Dolce & Gabbana have recently launched their own NFT collections, while designer Rebecca Minkoff became the first American female designer to create and showcase an NFT collection during New York fashion week in 2021. - Kaspar further noted that unlike tangible fashion pieces, digital items can be used as collateral for client retention and community engagement. She mentioned that high-end designers currently have limited engagement with consumers “NFTs can be used to redeem physical items or to unlock upcoming fashion drops. They can also provide access to private events” she added. She added “designers will also be able to communicate with customers through digital wallets, almost like email”.
- Selling virtual art or crypto art has been an advantage to artists during the pandemic, among extensive cancellations of shows, concerts, and exhibitions. - RTFKT, a virtual reality sneaker company, designs entirely digital products that can be purchased as NFTs and “worn” using a custom augmented reality filter. - Like RTFKT, Overpriced considers itself an NFT-first and physical goods second brand. Owning the NFT grants unlimited physical replacement hoodies, which the founders say solves the key issue with luxury fashion today: buyers want to show off their purchase, but they don’t want to get it damaged, so they refrain from wearing it. - It should be noted that the fashion sector is already creating hyper-realistic 3D digital garments in the design and manufacturing process, which has helped promote sustainability and bring new productivity to designers. - Digital fashion allows prototyping so that a designer or brand can experiment with different looks and collections on a screen before they ever start to produce a garment. -However, unlike the physical markets where brands and designers lose out from secondary market sales, NFTs mean that royalties can be programmed to apply for the entire lifetime of an NFT. So, each time a digital fashion piece (such as music or art piece) changes hands, the creators always get their share of the copyright, enforced automatically through programming on the blockchain. - In June 2019, Gucci revamped its iOS app to include an augmented reality feature that allows users to try on its Ace sneakers virtually
- Consumers were able to select a pair of sneakers from the label’s collection, point their phone’s camera at their feet and view an image of what they look like on that can be shared via social, text or email. - Recently, Gucci’s creative director Alessandro Michele has designed neon-coloured sneakers in collaboration with the Belarus-based augmented reality fashion platform Wanna. The virtual 25, which can be purchased between $9 and $12 on either company’s mobile apps, is designed only to be worn in digital spaces. - However, Gucci’s shoes do not have blockchain authentication. Therefore, despite being exclusively virtual at a cost of $12, the Gucci virtual 25 are not pure NFTs, but rather a mass virtual product replicable. - According to Hypebeast, inside Roblox’s virtual world, a digital only Gucci bag sold for more money than the bag’s value in the real world. - On DressX, customers buy a fashion piece and also submit a photo of themselves, and in return receive a digital photo of them wearing the fashion item. - The founders explain that because often time the goal of fashion is to post a photo to social media, their product gets users quickly to the end goal, all without having ever actually purchased a physical fashion item. - Digital fashion can go beyond traditional fashion design boundaries as designers can explore endless possibilities with digital-only products that do not exist in real life. In addition, digital fashion can offer a new definition of size body and gender inclusivity as bits and bytes can come together to create truly universal, genderless, and size less garments. - NFT’s only make this process easier, and buyers no longer have to deal with the annoyance of shipping, storing, and even wearing garments. - Any artwork, graphic design, 3D models, video, PDF etc. can become an NFT. But there are limits – it is important for NFT creators to be cautious about incorporating third party IP in their NFT content. - Furthermore, there are some environmental issues that make NFTs non-eco-friendly: like everything on the blockchain, they are very expensive and energy consuming. - While producing a digital-only product (like a virtual garment) means that a physical factory is not needed, transportation and packaging costs are non-existent so that the production costs and time to market are reduced, to create a single NFT takes 263,000Kwh, not to mention the carbon emission.
- Gucci - Dress X
- Fashion brands that build something specific and accessible to their fan bases can find breakout success. Crypto-native fashion brands are leading the way. - “NFT’s are all about collectables, and so is the fashion world” says Benoit Pagotto, founder of RTFKT. “Fashion brands just need to look and see where their fans have a collector’s mindset already, and then they can leverage NFT’s to unlock new ways of creating products and generating revenue”. - “Brands shouldn’t create NFTs because they have FOMO or want to be in the press. They need to consider their long-term vision and build towards the future”. - Dress X sees NFTs as a natural extension of what they are already doing, because NFTs allow them to layer the collectability mindset into their fashion pieces. The founders say they are in the process of integrating with the big NFT exchanges, as well as launching their own fashion specific NFT marketplace. - “I don’t think digital fashion will replace physical fashion, but I think it will be an integral extension of the industry moving forward” says Krista Gambrel, a dress X customer. - “Platforms like DressX offer a pathway towards solving some of the sustainability problems of our past while opening up fascinating forms of self-expression, creativity and business opportunity”.
- A fast-moving market for digital collectables offers people a new way to communicate status in their increasingly digital lives. How should brands respond? - According to market sources, leading fashion brands are examining the NFT space. But are NFTs a real opportunity for the fashion industry or just a passing fad? - Beneath the hype, there are signs that NFTs could have staying power. From painting to baseball cards, people have long assigned emotional and social value to physical objects that far outweigh their material worth. The same is true for fashion goods like handbags and sneakers. - Collecting these objects, over which we enjoy a kind of sovereignty, turning them into extensions of ourselves, is a fundamentally human activity deeply linked to how we craft and communicate our identities. And as we lead more and more of our lives online, everywhere from social media to video games, the concept of collecting and displaying digital objects seems likely to grow. - How should fashion brands respond??? Many are taking a wait and see approach, not the worst idea given how fast the space is shifting. For those eager to experiment, NFTs can be minted with a range of creative assets – a designer’s sketch or a memorable runway moment – and used to drive a variety of marketing outcomes, from being seen as “innovative” to deepening fan loyalty. - NFTs are also popular with the young, affluent, tech-savvy audience many fashion brands are after. Issuing NFTs that are linked to physical products and extend their value is perhaps the most strategic way to engage with the space. T
- The Fabricant – back in 2019, The Fabricant and Cartlings partnered to create the first digital-only blockchain dress, which was sold for $9,500. - “As a company of creative technologists, we envision a future where fashion transcends the physical body, and our digital identities permeate daily life to become the new reality” - “We’re developing new things that are impossible in the real world, like new materials – that just couldn’t work in the real world due to the laws of physics”, said Gala Marija Vrvanic, founder of Tribute Brand. - Being a virtual fashion brands also has social and environmental effects – the whole industry is moving towards more inclusive and sustainable fashion, making a concrete action against pollution. - The Fabricant is the world’s first digital fashion house, making innovative and compelling 3D garments and fashion narratives that are entirely non-physical. Among our founding principles is the belief that fashion should waste nothing but data and exploit nothing but the imagination. - We are committed to the creation of a new fashion perspective that revolutionises industry systems and makes self-expression through digital clothing a sustainable way to explore personal identity. - We strongly believe that digital fashion is the future we should embrace. With no need for physical deliveries and production, it is available without restrictions for any gender, sex or size.
Virtual fashion is not just a gem to collect, 3D technology has brought a revolution within the supply chain and workflow as designers are able to test and visualise every piece before sending the samples to manufacturers. For Leanne Elliott Young and Catty Taylor there is another aspect to digital fashion: being inclusive. Together they founded the institute of digital fashion, an initiative to help the integration of new talents in 3D design. Catty Taylor is also the creative director and founder of community Digi-Gxl, a platform that promotes women, trans, intersex and non-binary designers, in an industry still dominated by cis men.
“We strongly believe that digital fashion is the future we should embrace. With no need for physical deliveries and production, it is available without restrictions for any gender, sex or size.” - Inclusivity
• The fabricant – digital fashion house • Collections are always digital and never physical • Try to inspire the industry to move forward into this digital landscape – they believe digital is the future • They don’t use any models – completely computer generated • Ideas – inspirations – going into software and going crazy – like sculpting • Clothes 3D – 3D clothing – creating garments in 3D – freedom – in control as a designer – you can create out of nothing • Digital fashion house – in between the fashion industry and the 3D industry
Further research. https://cointelegraph.com/magazine/2020/06/26/gen-z-nft-ownership-digital-natives https://www.voguebusiness.com/technology/shaping-online-avatars-why-our-digital-identities-differ https://www.voguebusiness.com/technology/race-gender-and-representation-the-grey-area-of-the-metaverse https://www.campaignasia.com/article/marketing-in-the-metaverse-the-biggest-opportunities-for-brands/473059 https://www.jewellermagazine.com/Article2/9891/The-new-consumer-Meet-Generation-Alpha https://www.showstudio.com/projects/moving-logos/animation-zach-lieberman https://www.showstudio.com/projects/fashions-digital-future https://www.forbes.com/sites/cathyhackl/2021/10/17/fashion-in-3d-an-opportunity-for-greater-innovation/ https://www.forbes.com/sites/josephdeacetis/2020/10/04/how-technology-is-helping-luxury-fashion-brands-to-gain-traction/?sh=640fdb043640 https://www.forbes.com/sites/josephdeacetis/2020/12/20/how-lifestyle-and-luxurybrands-can-leverage-technology-in-2021/?sh=19a19bb2708d https://upmarkit.com/concept-of-luxury-brands/digital-luxury-marketing https://jingdaily.com/luxury-marketing-in-2021-will-look-and-feel-a-lot-more-animated/ https://elle.education/business/digital-fashion-week-what-are-the-communication-tools-engaging-in-the-luxury-landscape/
My interview with Dena Giannini: RE the metaverse & NFTs Q: Do you think NFTs are the future of fashion media? Please explain why “Nfts are definitely part of the future of fashion media. But one of the main uses for NFTs that I think is being overlooked right now but will come into play in the future in a big way is intractability.” “We’re going to see these start-ups popping up most definitely in the next few years where you can certify the prominence of your things using NFTs. I think that this is the direction we are going in, that NFTs are going to start coming with lots of things that we purchase.” “Of course, there is a huge problem with the amount of energy that blockchain takes to exist and the amount of energy that the blockchain uses. My opinion is that there is so much money invested into blockchain crypto NFTs by some influential and problem-solving innovative people and, I’m sure that these people will find a way to offset the footprint, hopefully in a real way.” Q: What do you think the digitalisation of fashion will mean for the fashion industry and your own practice? “Perhaps there is going to be some really exciting creativity and innovation in what the metaverse clothing designers and the clothing design community and style community come up with, so I’m excited for that.” “The way that we consume and learn about fashion and are shown new collections will change.” “Interactivity is key, as we have seen across the years. Print Vs digital, for example, is two different mediums. Still images on a page are powerful and, a still image on a webpage is not going to be that powerful as when you see the printed image on the page. However, digital mediums allow us to tell new stories in a new way.” “Some critics say that the print industry did not adapt to digital mediums quickly enough or in an innovative enough way. Some say that the purveyors of the most riveting still imagery and the most powerful still imagery over the years are no longer the purveyors of the most riveting digital imagery, and the answer is why. Perhaps part of the answer from some of the sceptics would be that the industry is not quickly enough evolving to using the medium of digital in the most expansive and impactful way possible.” Q: Do you think digital fashion is the future of a fad that won’t last? “I don’t think that digital fashion is going to go anywhere. I think it’s only going to increase exponentially. Of course, there’s always going to be tangible items and tangible design in real life. But sooner than we can imagine, the metaverse will be more important or just as important as the literal-verse that we exist in every single day.” “The metaverse is an extension of the physical world, and I think when done successfully adds this kind of imagination and playfulness and creativity. Hopefully, if we get the creative communities working on this now and engaging in important conversations with technologists who don’t have access to high fashion then I think that we can pave the way for as ethical and exciting of a future as possible.”
“Another area that I think is going to explode is the market of hardware of how we display our NFTs. NFTs can expand the horizons for self-expression through wearable art and, there’s a lot of innovation that can come with this.” “It would be a disappointment if a lot of the companies that made the mistake the first time around of not adopting digital quickly enough made it the second time around, but it’s human nature.” “Of course, for all the good ways that you can use a technology like this, there are an equal number of harmful ways that people will use, so ethics and morals are going to be paramount moving forward.”
“The metaverse is an extension of the physical world, and I think when done successfully adds this kind of imagination and playfulness and creativity.”
Dress X AR
Gen Z
• Gen Z set to account for 40 percent of the global personal luxury goods market by 2035 • Gen Z will contribute to 130% of market growth between now and 20255 • Value driven spending – significant driver • Gen Z’S relationship with luxury evolving • Fashion is a keyway for them to express themselves • Mixing and matching different brands and different price points – consumer behaviour • Care about sustainability / transparency • Making decisions based on their values • Celebrating the creating process • Zalando designer marketing campaign • Social first customer demographic – gen z • Consumer value shifts – gen z – “a cohort that wanted to save the world” • What is motivating gen z to shop these designers at these price points? • Not just a label • Made to order items? • Shopping with conviction • Having real intent behind their purchases – gen z • Post pandemic – increased appetite in investment purchases – timeless • Gen z more mindful when it comes to spending – retailers need to understand this • Gen Z market trends – fastest growing group – their engagement is different – they care about pre-owned – shopping beauty – sneakers – buying behaviour buying across price points – buying behaviour knocking down barriers • Gen Z want to behave more sustainably, make more sustainable choices, value-based decisions – have luxury brands enabled them to do it? • Gen Z – product trends – made to order – ‘cut to order’ – customers are ready to wait – they want something no one else has. • Gen Z most informed customer – smartphones – entire human knowledge at their fingertips
• What kind of curation is most compelling for this customer? Curation is this thing about having the familiar and the things you don’t know – discovery process – exciting & cool for consumers (not just a label) the known + the discovery • Exciting ways of curation – platforms discovery tools • Not just a label – how should platforms be viewing curation for gen z? • Curation means being an opinion leader – personal conviction – a mindset • Gen Z – interest in something completely new, not just big brands • No shortcuts in reaching gen Z • Gen Z – personal touchpoints with brands – new approach that’s needed to speak to this gen Z shopper • Not a one size fits all • Sense of community & supporting local businesses and local creative world • Fashion is not going back to how it was pre-pandemic • We need to stop the destruction of our planet • Giving Gen Z what they want – on demand manufacturing – provide them with something different – personalisation • Show the customer that there’s a choice • Gen Z is driven by conviction • You Can’t stop change from happening – fashion really need to change – the solution is there • We have an opportunity – the industry needs to come together – move forward with sustainability, considering ethics and social topics • Collaborating more regularly to solve problems – what role will this play in luxury? • Collaboration is key to moving forward – coming together and creating greater value
- Born between 1995 and 2010. - Gen Z are willing to shop across channels, have an appetite for higher-quality items are eager to stay on top of cultural trends. - 70% of Gen Z are monitoring their spending more closely because of the pandemic, meaning brands will have to earn their place in Gen Z wallets. - Gen Z is a truly omnichannel generation, shopping wherever best suits them in the moment and without preference as to the vehicle they use to find what they want. - “Covid-19 accelerated a generation worth of shifts to digital, and consumers won’t revert back,” says Daniel Heaf, VP of Nike Direct. - “Digital is more than just a sales channel. It is a way to build connection and community”. - Gen Z shoppers on Depop are “redefining what ‘newness’ means” says depop brand officer Peter Semple. - Gen Z also makes purchases to stay relevant and lift their mood. - Through their digital lifestyle, gen z has different expectations on what is a cool design, what is fashion, and what is the latest trend to follow. - Gaining the ability to influence and inspire rather than just follow trends has become critical – The Vivienne Westwood choker. - With the growing influence of Gen Z, the best performing luxury brands during the pandemic created more desirability by reinvigorating their iconic products with fresh materials, designs, colours, and collaborations.
- According to research conducted by Accenture, “Generation Z” shoppers care less about brand loyalty, are much more influenced by social media and open to new concepts and buy impulsively. - They want a quick and convenient shopping experience. If delivery times are too long or aren’t free, these consumers will look elsewhere. - Generation Z consumers crave an interactive and personalised approach focused on authentic, original brand stories. - There must be a sense of purpose and personal connection to what is being purchased. - With fashion, touching and experiencing a physical product is still relevant co consumers, especially those purchasing luxury goods. https://jingdaily.com/gen-z-disrupt-luxury-business-models/ - The first digitally native generation. Gen Zers were surrounded by computers and smartphones and had access to social media from their earliest days, dramatically shaping their experiences and interactions. - Gen Z value authenticity and expect brutal honesty and uncompromised authenticity from brands. - A different, authentic, inclusive, and spontaneous way of interacting with Gen Z is needed. - Gen Z value nothing more in brands than strong values they live unapologetically. - Brand equity, brand positioning, and brand storytelling have become more important than ever before, leaving many existing brands at massive strategic disadvantages.
- Brands centred on strong storytelling, providing extreme value, and offering memorable experiences are more likely to connect with young consumers. - Brands like Louis Vuitton, Dior and Gucci see to do a much better job at reinventing themselves for the next generation than many other brands. - The brands that will not make it are those that claim that they are luxury while not delivering extreme value for customers. - Brand storytelling is a holistic task. It starts with understanding what your brand stands for and then rigorously applying that story along the brand’s entire customer journey. https://www.businessoffashion.com/articles/retail/afterpay-communicate-and-connect-with-gen-z-consumers - Gen Z – a purpose driven approach to consumption – shopping with conviction - Communicating with younger consumers directly through visual platforms and holistic brand activations - Three key measures of gen-z spending: consumption as access, rather than possession, spending as an expression of their identity, and consumption as a measure of ethical concerns.
- What gen z wants: transparency (cancel culture) - A social presence (Instagram and TikTok) is steadily rising in popularity, making them the best choice if you want to target Gen Z. - A mobile-friendly experience – a smartphone remains the device of choice for 75% of gen z. - Meaningful interactions – gen z expect brands to communicate in a personal and relatable way that speaks directly to them. Loyalty is another trait Gen Z values. - Purpose – 69% of gen z believe that brands should help them achieve their goals. - Gen z has learned that the best way to get something is to fight for it – petitions for causes they care about, social movement to bring about change. - A sense of community – gen z are extremely passionate community builders, connecting with like-minded people who want to build something great together – reddit and discord. - Select the right channels for gen z and make sure your communication meets their needs. - What message do you want to send? This must align with their present needs and the values they live by. - Why? no matter how much your message resonates with them it must be genuine.
‘Normcore’.
Storytelling is key. - Storytelling is key – this generation is seeking a personalised approach focused on authenticity. Gen Z shoppers tend to value a brand’s history as well as innovative designs and unique items that reflect their values. There must be a sense of personal attachment with the items purchased, hence the importance of storytelling. - Younger consumers avoid superficial and favour quality and design. - Mixing and matching - Corporate social responsibility. - More active in the second-hand luxury – increased among gen z the past few years x3 faster than among older people. It is the only way for this generation to get their hands on sold-out collections or limited editions. Often people think that Zs are attracted by second-hand items because of lower prices, yet it is the actual vintage items that fascinate them. - Gen Z finds it cool to wear other people’s old clothes. - Most of the second-hand luxury items are sold online - Convenient and sustainable. - To connect with gen z focus on uniqueness, authenticity, transparency, ethics, innovation, and high tech. - Send strong messages.
- Established luxury brands must not only provide young consumers with relevant brand messaging, product categories, and digital storytelling, but they must also give them sustainable solutions. - In a recent luxury panel discussion, a common theme among the panelists was the three major forces shaping the future of luxury: digital, new young consumer groups (gen Z and alpha) and sustainability. - Gen Z are already the most influential generation for luxury brands. - The challenge for many brands is to provide those young consumers with relevant brand messaging, product categories, digital brand storytelling, content, and sustainable solutions. - Solutions must be developed that combine digital practices with sustainability.
New forms of visual communication: - Interactive 360-degree imagery
Alexander McQueen: legacy
“You’ve got to know the rules to break them. That’s what I’m here for, to demolish the rules but to keep the tradition”. - Clothing as an art form.
The brand today.
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