Discover how Web3, NFT and Metaverse fit in with fashion – Sourcing Journal
The Council of Fashion Designers of America (CFDA) recently announced that it will be celebrating its upcoming 60th anniversaryth anniversary by “looking to the future” with a metaverse, Web3 and NFT exhibition in December. While the themes of the event may be unfamiliar to many, organizers hope to use it to show fashion players the opportunities that are becoming available in the digital world.
“Our vision at 5Crypto and with this partnership is to empower and educate Web2 brands on the limitless possibilities Web3 brings, creating special moments that bridge the gap between consumer and crypto,” said Akbar Hamid, Founder and CEO of 5th Column and 5Crypto, a communications agency for cryptocurrency, metaverse, NFTs and consumer brands. More on Web2 versus Web3 in a bit.
The CFDA event will include a metaverse exhibit (metaverse can mean augmented or virtual reality, or avatar/game reality, among other things) with 60 looks from CFDA’s six decades, as well as exclusive NFTs (non-fungible tokens) that will be auctioned.
Valentino Vettori, founder, Arcadia Earth, a platform that aims to raise awareness of sustainability and circular design, says fashion companies can start creating value and relationships with their customers through Web3, NFT and cryptocurrency. During a presentation at the recent Coterie New York trade show, Vettori described Web2 as a site where the brand sells to others. He then explained Web3 almost like crowdsourcing – where a brand would be owned by whoever buys part of the company through non-fungible tokens or crypto. It can be owned by 100 people or a million people, depending on the value someone creates for their company. Ownership is then distributed through digital assets such as NFTs, whose ownership can be tracked through blockchain smart contracts.
“NFTs can remain a simple loyalty program where if you own my NFT, you can participate in my fashion show, or if you own my cryptocurrency, you can own a piece of my brand,” Vettori explained. “Let’s say I released shoes and I put beautiful images on the digital contract that says if you own the shoes in the physical space, you also own them in the digital space. Once you own the shoes, you can also resell them. If it was a limited collection, it has value and now you can make money off of it. Also, if you are someone with no money but you have a lot of friends and you want to start a fashion business, you can create a brand and break it into tiny pieces. And then you create a crypto (Vettori says it’s not hard to do), and technically you raise money very quickly. Before you know it, you’ve raised money with your investors who are also your consumer and your community – and all the transactions are tracked through their blockchain with this smart contract.”
This may sound dizzying. But it also sounds like it could be profitable for retailers and brands alike, especially if it’s carried out by well-known names that already offer consumers a certain level of comfort. Currently, shoppers buy most of their clothing from mass retailers such as Walmart and Target (22 percent), according to Cotton Incorporated’s 2022 Lifestyle meterExamination. This is followed by Amazon (13 percent), chain stores such as Kohl’s (12 percent), department stores such as Macy’s and Dillard’s (11 percent), discount stores such as Ross and TJ Maxx (10 percent), specialty stores such as Gap and American Eagle (9 percent) and specialty stores with fast fashion such as Zara and Uniqlo (6.6 per cent).
Currently, most consumers prefer to buy their clothes in a brick-and-mortar store (58 percent) versus online (42 percent), according to Observe™ research. It is still quite traditional. But GWI, a UK-based market research firm, says more than a fifth of Gen Z and Millennial shoppers want retailers to offer augmented reality (AR) so they can try on products digitally. The company says there has been a 29 percent increase in the number of owners of VR (virtual reality) headsets since 2020.online. shoppers turn most to retailers and brand websites (35 percent) when looking for ideas for buying clothes online, according to Observe™ research. This is followed by social media sites (30 percent), online-only sites like Amazon and Net-A-Porter (28 percent), online-only apps (27 percent), e-mails from retailers and brands ( 24 percent), retailers and brand apps (22 percent), fashion or fashion trend sites (20 percent), and e-mails from online-only sites.
GWI adds that brands should also enter the gaming world, as it predicts gamers will be among the metaverse’s early adopters. GWI says that 22 percent of consumers who are interested in taking part in the metaverse already play Minecraft.
While some of fashion’s digital future may sound like it also futuristic, retailers and brands should note that most consumers (58 percent) say that the past few years have changed the way they will shop for clothes in the coming years, according to Observe™ research. Almost half of these buyers (47 percent) say they want to shop more for clothes online. And 41 percent say they want to be more purposeful with the clothes they buy.
For its part, the CFDA is using its 60th anniversary to help the industry move forward.
“The CFDA has always been a pioneer of creative and innovative thinking,” said CFDA CEO Steven Kolb. “And with our first metaverse exhibition and NFTs, we embrace this new era of digital transformation.”
The Cotton Incorporated Lifestyle Monitor™ Survey is an ongoing research program that measures consumer attitudes and behaviors related to clothing, shopping, fashion, sustainability and more.
For more information on the Lifestyle Monitor™ survey, please visit
