If 2022 was the year that Web3 found its footing, then 2023 is shaping up to be when the landscape officially gains ground. Over the past 12 months, big names and big projects, including Nike x RTFKT and Tiffany’s Cryptopunks, have taken the helm in the virtual space. Already today, new trend cycles are emerging, showing us what we can expect to see in a potentially explosive year for luxury and the metaverse. daily jing rounds up the key topics and predictions to keep on your radar for 2023.

Bridging the gap between physical and digital is key to mainstream adoption

One set direction to continue is the blurring of virtual and reality. In the past year, many have used the metaverse as a way to bridge the gap between physical and digital limitations, with phygital collections and interdimensional experiences proving a popular avenue.

“By 2023, we expect more exploration to blur the lines between physical and digital, as well as more efforts to bridge the gap between the mainline and Web3 communities,” explains Zagabond, founder of the NFT Azuki project. He believes that branded mascots will become key players in furthering this exploration.

Like virtual idols, these native Web3 spokespersons have the ability to garner mainstream appeal through brand partnerships and ambassadorial roles, paving the way for new opportunities beyond traditional influencer marketing. “These mascots are key to storytelling, which is also a major trend we’ll see in 2023 and beyond,” he says. “Web3 technology allows brands to tell better stories; the sooner brands realize this, the stronger their communities will be.”

Gmoney’s crypto lifestyle brand 9dcc is redefining luxury with its ‘networked products’, each of which is embedded with NFC tags to prove their authenticity. Photo: 9dcc.

Phygital products need a rebrand and a more sustainability-focused strategy

2022 was the year that phygital took the fashion landscape by storm, thanks to launches by Prada, Givenchy and Tommy Hilfiger. But unlocking real-world value was a tall order. This year, moving away from merchandise and instead honing in on standard luxury quality is what will take brands to new heights on their digital roadmaps.

Luxury fashion consumers are showing more interest in the digital space than ever before. Although many hesitate to invest. To address this, brands are faced with finding the golden ratio between creating products that bring online identities to the physical realm while maintaining their recognized standard of quality.

The prolific NFT collector turned designer gmoney is using his platform, 9dcc, to meet this challenge head on by working to redefine virtual space. The designer is replacing unsavory jargon like “phygital” with fancier terms like “network,” as well as prioritizing high-end garments over one-of-a-kind gimmicks: shocking changes that likely bode well for the luxury and casual audience. encourage you to invest money. in the online market.

“With Generation Z and Generation Y poised to make up nearly half of the luxury fashion market in just a few years, luxury brands seek to create memorable experiences that not only acquire new audiences but retain them for the long haul. term,” Charles Hambro, co-founder and CEO of Web3 data platform GEEIQ describes. “A fictional dimension of a luxury offering creates a bridge between online and offline environments, making it more accessible to new buyers while future-proofing the brand.”

Sustainability efforts will also be at the center of this conversation. The rise of phygital trends risks fueling binge consumption, so it will be interesting to see how brands will address this through their own engagements. tags like worship and rain have already shown how Web3 native companies can implement sustainable practices. The brand’s zero-inventory, made-to-order strategy alleviates the risk of overstocking and prevents wholesale waste.

MNTGE, the first Web3 brand, is tapping into the lucrative vintage and resale fashion market through digital twins and blockchain technology. Photo: MNTGE.

Improved infrastructure will encourage product authenticity and resale programs on Web3

As part of this trend, more brands are looking to focus their attention on implementing technology that proves authenticity and decreases opportunities for counterfeiting. In its most recent launch, the Japanese streetwear brand Ambush embedded Physically Backed Token (PBT) bean chips into its assets, powering blockchain’s unique ownership verification technology.

“As we continue to get past the metaverse hype, it can no longer be all a gimmick. Phygital offers must be part of a reasoned, long-term strategy that offers genuine value to the buyer, rather than just a branding opportunity. Improved infrastructure, verifiable products, and better authentication will likely increase the adoption curve for these products by introducing new consumers to the concepts of Web3 and the metaverse,” continues Hambro.

The evolution of the metaverse brings greater demands for an infrastructure that can also demonstrate one’s status on Web3. The evolution of blockchain technology will not only allow consumers to easily verify their assets, but will also open up new opportunities for secondary value and resale models.

Enhanced blockchain technology can help luxury resellers get their Web3 ambitions off the ground. Just like in the offline world, provenance and rarity are attractive selling points for luxury consumers on Web3. This is something that companies like digital native vintage label MNTGE they have already recognized.

The brand, which has yet to be officially launched, is already making waves in the industry after announcing that it will bring unique archival pieces to the metaverse via digital twins. You are not only tapping into new technological possibilities, but you are innovating a market that demonstrates promising credentials. In 2021, the vintage fashion market was valued at more than $96 billion in 2021, a number that is estimated to more than double by 2026.

Digital fashion marketplaces are luxury’s path to a more accessible future

Immersive virtual shopping experiences took off in 2022, allowing consumers to try on outfits and unlock products through gamified activities and incentives, as well as leveraging brand storytelling. This year will see this trend continue, elevating the traditional eCommerce model to something more exciting, engaging and interactive.

Digital fashion markets are also on the 2023 agenda. Last year the likes of DressX and Meta’s Avatars Store made headlines, but this year could be when they catch mainstream appeal. in roblox “Metaverse Fashion Trends Report 2022” since November, nearly three in four respondents said they will spend money on digital fashion, and more than one in four have already spent between $20 and more than $100 on a single virtual item.

As the metaverse becomes more interoperable, consumers can display their virtual purchases (on avatars and themselves) on various platforms including Instagram, Decentraland, Sandbox, and Roblox. Digital fashion marketplaces will whet the appetite for the online counterparts of luxury, thanks to their more affordable and accessible price points.