Despite downturn, brands are pivoting back to the metaverse

The World Economic Forum, hosted in the alpine town of Davos this week, shone a spotlight on some of today's most prolific industry pioneers. One of them was non-fungible token (NFT) collector-slash-entrepreneur Gmoney, whose luxury lifestyle platform 9dcc was recognized as the "Phygital Brand of the Year.” The accolade marks a big step for the recognition of phygital fashion as a feasible market, with trailblazers like Gmoney contributing to its trajectory. In other Web3 news this week, MCM is gearing up to enter the metaverse with the launch of its new virtual retail destination. Meanwhile, tech patron Tommy Hilfiger has unveiled a new mobile metaverse game designed to scale fashion through immersive, sociable experiences. Gmoney’s 9dcc wins “Phygital Brand of the Year” What happened: On January 18, Gmoney’s lifestyle platform, 9dcc, took the title of “Phygital Brand of the Year” at the 2024 World Economic Forum in Davos. During the Phygicode Impact Awards ceremony, the entrepreneur was applauded for his groundbreaking work in developing a blockchain-based luxury community and "networked products" — a format of phygital luxury lifestyle items interconnected with blockchain technology through integrated NFC chips. Why it matters: The award is a pivotal moment for the phygital fashion landscape, solidifying its position as a formidable market within the broader fashion industry. Acknowledging the impact of phygital design is the first step toward mainstream acceptance. As an increasing number of brands incorporate NFC chip technology and blockchain-enabled models into their products, tech-enhanced garments are poised to become a focal point in the luxury market over the next year. Consumer expectations regarding provenance, ownership, and quality from brands are only increasing. Tommy Hilfiger launches mobile metaverse fashion game What happened: American preppy label Tommy Hilfiger is back exploring the metaverse with its new mobile game, FashionVerse. Co-developed by Hilfiger, Brandible, and game publisher Tilting Point, the playable app uses AI-generated, photorealistic avatars and settings, inviting users to take on the roles of "Stylists" and "Trendsetters." Within the game, pop-ups will present challenges inspired by campaign themes and collection pieces, along with special rewards for players who successfully complete all the challenges. Why it matters: As a brand that has invested heavily in Web3 and the metaverse, it's unsurprising that Tommy Hilfiger is forging ahead as competitors face stagnation in the digital realm. The experience marks the debut game from Hilfiger Ventures, a private investment vehicle co-founded by Tommy Hilfiger and Joe Lamastra. The venture's mission is to enhance fashion accessibility by leveraging cutting-edge technologies, including AI. MCM teases new metaverse retail destination for 2024 What happened: MCM, the German fashion label known for its monogrammed leather products, is launching a metaverse platform in partnership with the new virtual world, Caliverse, later this year. The brand teased its digital shop at the Consumer Electronics Show, which will use real-time rendering graphics, 3D live synthesis, and AI technology. The dynamic space will invite consumers to purchase products within a multi-reality environment. Why it matters: Luxury retail in the digital age is undergoing a transformative evolution, which will see technologies including metaverse destinations and AI become integral to a brand’s marketing blueprint. Virtual shopping destinations, in particular, dwarfed other tech innovations last year after reams of retailers unveiled their own immersive store experiences, complete with gamified content, rewards systems, and exclusive access.

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Despite downturn, brands are pivoting back to the metaverse