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As pre-pandemic norms have returned in 2023, so have more balanced tech strategies. Feverish hype cycles for NFTs, the metaverse, Web3 and AI started to level out, sobered by the economic climate, the crypto crash and waning consumer enthusiasm. When it comes to experimental tech, the long-term picture now takes precedence. In the meantime, more practical technologies are top of mind.
This means that fashion and beauty tech news in 2023 saw fewer “big bangs” and more varied efforts. The leading incumbents, such as Louis Vuitton and Gucci, polished their approaches to Web3 with two very different strategies. The gaming leaders, especially Roblox and Epic Games, solidified their expertise in this new terrain. Big tech companies had a rocky year, spanning augmented reality wins and losses, changes to algorithms and a new race to dominate — and govern — artificial intelligence.
We reviewed our fashion-tech predictions from 2023 to determine what we got right — and what we got wrong. Here’s who won, who lost and what we learnt about innovation in fashion this year.
Prediction: NFT, Web3 and metaverse infrastructure and mechanics would improve the customer experience
Verdict: Fail ❌
NFTs and Web3 weren’t in the spotlight enough to be seriously put to the test, especially compared to 2021 and 2022. While many brands have addressed early hiccups, the process of buying NFTs, wearing digital fashion and exploring virtual worlds is still complicated and confusing to many.
Last year, we noted that technical challenges and a lack of follow-through for collectors was a problem ripe for improvement; many in fashion are still waiting. During New York Fashion Week in September, most brands seemed to forget about Web3 perks — perhaps rocky and rushed rollouts in February left them skittish. In its second iteration, Metaverse Fashion Week saw improved strategies that borrowed from gaming, but suffered the same technical and cultural glitches as the first year, with fewer overall attendees.
In response to unreliable tech partners, subpar experiences and a reversal on royalty rules, leading players built their own processes for selling NFTs: digital fashion startup Syky built its own marketplace, and Louis Vuitton required applications to purchase, then transferred NFTs to new holders individually. Nike fleshed out its Dot Swoosh platform.
Those who’ve proven prowess are expanding. Both Fortnite and Roblox maintained their leads through partnerships with brands including Ralph Lauren, Gucci, Tommy Hilfiger and Nike. Nike funnelled new users through a Fortnite pop-up, and Fortnite parent company Epic Games is parlaying its gaming engine into long-term partnerships with Nike and Louis Vuitton. Meanwhile, DressX is spinning out a “DressX Factory” to offer its tech expertise to others, and metaverse insights platform Geeiq raised $8.5 million in response to its success advising the likes of Gucci, Elton John and Tommy Hilfiger. Even startup 9dcc, founded by Web3 advisor and investor Gmoney in 2022, expanded to a service model called “Powered by 9dcc”; brands can pay to use the same tech that 9dcc developed to attach clothing to NFCs (near-field communications) and NFTs.
Even older players suffered from the metaverse winter: Instagram abruptly killed its NFT plans, and Snapchat quickly called it quits on its augmented reality enterprise arm, called Ares.
Prediction: Discrete or invisible tech will come to the forefront
Verdict: Pass ✅
Practicality prevailed. Tech-for-tech’s sake was out. Hugo Boss built a €15 million campus to improve how it collects and uses data behind the scenes. Coach parent Tapestry built an internal data dashboard to better inform product and marketing decisions. Google and Meta introduced tools for advertisers to quietly change out image backgrounds that look realistic.
Shopping tech made a lot of sense this year. Brands and companies including Kering, Zalando, Valentino, Zegna and Armani used invisible artificial intelligence tools to expand or improve clienteling and customer service. At New York Fashion Week in September, brands invested in social shopping pilots, while post-purchase technology saw increased innovation in e-commerce, with brands hoping to capture that happy moment after a checkout is confirmed.
Future-focused tech, rather than overtly ambitious, was subtle. Brands including Pangaia, Tod’s, Balenciaga, Chloé, Coach and Mugler assigned digital identities to physical products — preparing for a future where “digital product passports” are as standard as food labels. Both Meta and Amazon debuted smart glasses that hide generative AI assistants inside normal-looking fashion eyewear; Meta’s capture pictures and live-stream videos, while Amazon’s pair provide Alexa’s intelligence through ambient audio that only the wearer can hear. NFTs weren’t exempt from the less-is-more memo: Dior rolled out a special collection of sneakers with a hidden NFT layer, while Prada has been quietly attaching NFTs to monthly drops throughout the year.
Prediction: Experiences will get an upgrade — just don’t say “metaverse”
Verdict: Pass ✅
Virtual products and experiences enjoyed smarter marketing, blended digital-physical moments and more sophisticated gaming strategies. “Metaverse” might be an out-of-fashion term, but metaverse tech is alive and well.
Gaming specifically had a big year. Celebrities and celebrity fashion from those including Karlie Kloss, Elton John, Emily Ratajkowski, Beyoncé, footballer Jack Grealish and stylist Kate Young all landed on Roblox, officially the dominant hangout spot for Gen Z. Gucci deepened its “twinning” strategy by marrying digital-physical events with its Gucci Ancora show in Milan in September (linked with three metaverse worlds) and its Gucci Cosmos exhibit in London (mirrored in a Sandbox pop-up). Meta’s and Snapchat’s avatars received fashion upgrades from Valentino, while Nars tapped physical actors to animate its virtual humans.
Apple and Meta unveiled their visions for mixed reality headsets that overlay digital content on the physical world. To prepare for this blended reality, brands tested augmented reality mirrors and new approaches to AR marketing; they also deepened their capabilities in virtual stores to appeal to Gen Z shoppers.
Prediction: AI will see a creative revival
Verdict: Pass ✅
The AI renaissance — sparked by easily accessible generative AI tools — brings new opportunities and questions to fashion’s creative class. While development is still ongoing, many have already found a use: Marc Jacobs playfully wrote tongue-in-cheek show notes using ChatGPT, before later recognising the emerging role of prompt engineers. Estée Lauder and Adore Me have already found efficiencies in copywriting and customer service, while Spate is using ChatGPT to streamline and improve trend predictions. A new set of startups is attacking the “Clueless Closet” conundrum anew, hoping that generative AI assistants can pick up where previous efforts have left off.
Collina Strada’s Hillary Taymour remixed her own designs to create September’s self-referential collection, while Revolve produced a physical capsule based on the best works submitted to the first AI Fashion Week. Prada Beauty and Chanel both unveiled ad campaigns made using generative art, Shiseido commissioned generative art sold as NFTs and Gucci commissioned two Christie’s collections of generative art. Meta promoted its new customisable gen AI chatbot by animating a virtual human that looks and sounds like Kendall Jenner, in addition to other recognisable personalities.
While brands hesitantly experimented — concerned about the impacts on jobs and intellectual property — global legislators navigated how to regulate the AI rush. Going forward, brands are bracing for further rules around data and disclosures, while hoping for protections for their own creative works and its workforce.
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