THE RISE OF THE METAVERSE: WHERE CRYPTO, NFT AND LUXURY BRANDS MERGE
Joseph DeAcetis in Forbes, Feb 8, 2022
“‘The rapid acceleration and acceptance of the Metaverse has galvanized luxury fashion brands and the related industries to begin experimenting on the new frontier. Historically, luxury fashion’s DNA has been rooted in exclusivity with availability only for the few. While broad accessibility to the Metaverse may appear to be a contradiction to this aura of exclusivity, in fact it is not. As luxury brands test the waters with online gaming, limited NFT launches, and further collaborations, they will begin to carve out a similar, exclusive niche in the digital world.
In the not too distant future, we will witness and experience the next stages of social interaction taking place in another “dimension.” As consumers dress themselves to meet and interact with others on this new plain, it is easily conceivable that each will want to express their individuality by wearing digital fashions in their own unique way. Luxury brands will continue to thrive in this sector by offering branded digital assets at exclusive price points, thus creating a new revenue stream.
Luxury branding strategy has always been driven by the consumer’s desire to own something which many do not have. Scarcity creates demand. As such, luxury fashion houses can meet this demand by continuing to offer exclusive apparel and accessories with limited availability. By complementing the physical with digital, these brands will perpetuate their brand identities while simultaneously capitalizing on their digital assets in a new market, the Metaverse.
What remains to be seen is how the Metaverse will overcome the physical advantages of touch, smell, and taste even though sight and sound have already been conquered.’ Says Vincent Quan Associate Professor Fashion Business Management Department Fashion Institute of Technology, SUNY.”
NFTS, METAVERSE AND GAMEFI ARE CHANGING UP THE FASHION BUSINESS IN 2022
Joseph DeAcetis in Forbes, Dec 22, 2021
“‘Non-Fungible Tokens (NFTs) represent a tremendous opportunity for fashion brands to capitalize on the digital frontier – also known as the metaverse. Similar to the introduction of the latest fashion trends, NFTs for fashion brands are in the earliest stages of the fashion cycle which begins with the introduction, rise, peak, decline, and eventual obsolescence of such products.
NFTs are arguably still in the introduction stage as multiple fashion brands are currently experimenting with the concept of minting digital assets then marketing these non‐physical entities to consumers. It appears that NFTs have a longer way to go than fashion fads, in a short period of time. However, NFTs are quickly gaining ground. As consumers embrace the concept of purchasing fashion NFTs and ‘wearing’ their newly acquired digital apparel and accessories on an avatar, fashion brands must look beyond the introduction stage and anticipate a rapid rise of NFT demand. Like art, one‐of‐a‐kind masterpieces can fetch extraordinary prices. Fashion, especially luxury fashion, knows this equation all too well and that an imbalance created by limited supply and extreme demand, creates “value” for the consumer. The creative and financial opportunities presented by NFTs are boundless.’ says Vincent Quan, Associate Professor, Fashion Business Management, Fashion Institute of Technology.”
FASHION, TECHNOLOGY, AND CRYPTO: WHAT TO EXPECT IN 2022
Joseph DeAcetis in Forbes, Nov 4, 2021
“‘As cryptocurrency gains in popularity, its acceptance as a medium of exchange is also growing. However, crypto’s unregulated nature makes it a more volatile store of value. It acts more like a commodity rather than currency in that it must be exchanged for “real” currency. Pending government regulations can add further value to this trending commodity by assuring potential buyers and sellers of its legitimacy. On the other hand, extreme regulations may have the opposite effect. As the fashion industry heads into 2022, look for cautious optimism from luxury fashion brands which will take a wait and see approach on whether to accept crypto payments for goods and services. Trends in fashion are not much different than trends in crypto. There are the early adopters who lead the way and then there are the followers who venture out only when it is “safe'“ to do so”.’ Says Vincent Quan,Associate Professor Fashion Business Management Dept —Fashion Institute of Technology.”
MAJOR LUXURY FASHION BRANDS ARE WOOING THE $2 TRILLION DOLLAR CRYPTO MARKET
Joseph DeAcetis in Forbes, Aug 3, 2021
“Cryptocurrency has been a revolutionary game changer since its development and ongoing, yet cautious adoption as a form of payment especially within the world of luxury fashion. Fashion brands have been on a quest to grow their Millennial base while capturing younger, Gen Z consumers. Fortunately, these two market segments have an affinity to crypto which bodes well for the entire fashion industry.
However, as additional fashion brands join the ‘crypto parade,’ the currency comes with some risks. The primary risk is that currency usually functions as a ‘store of value.’ Arguably, crypto can be defined more accurately as a commodity first, then a currency. As such, commodities are items which can be bought and sold and can gain or lose value over time. Thus, a luxury brand accepting payment in cryptocurrency may lose value as it attempts to resell or exchange the cryptocurrency for hard currency such as US dollars.
The secondary risk is that crypto is generally not backed by the full faith and credit of any nation’s currency unless it is specifically a ‘fiat‐backed’ stablecoin. Thus, both consumers and fashion brands must be wary of the volatility exhibited by cryptos’ daily change in value. Whereas hard currency, gold, or silver are considered tangible assets with a physical ‘presence,’ crypto is a digital, intangible asset.
Finally, cryptocurrencies are traded much like securities on an exchange. However, the major difference is while securities are closely regulated by governmental entities, crypto is not. Regulation of cryptocurrencies has been an ongoing global discussion with some forms of regulation expected on the horizon.”
INNOVATIVE BLOCKCHAIN TECHNOLOGY CREATES NEW OPPORTUNITIES FOR THE HIGH-END FASHION INDUSTRY
Joseph DeAcetis in Forbes, Mar 27, 2021
“‘Blockchain technology provides total transparency of product from inception to end use. This single technology can allow users to track and trace the legitimacy of any product from luxury fashion to basic necessity. In doing so, blockchain can cover a variety of corporate, consumer, and social goals, including sustainable sourcing, identifying the source of all merchandise along the supply chain, and further advancement of trust between brands and their numerous stakeholders’. says Vincent Quan, Associate Professor of Fashion Business Management Department at the Fashion Institute of Technology SUNY.”