Web3 hasn’t changed the world yet, but it’s using blockchain and NFTs to change many industries such as digital fashion. Unlocking multiple use cases and business models, designers can create unique, scarce, traceable and tradable digital clothing and accessories. Powered by Web3, these innovations promise to revolutionize digital fashion.
The metaverse will allow avatars to wear digital clothes, create new asset classes to buy and sell clothes as digital assets, democratize fashion by turning average citizens into fashion designers, the possibilities are endless. is. Digital fashion assets as collections are valuable because they cannot be duplicated. Fans can collect clothing worn by celebrities at particular events or for their uniqueness. These possibilities are close to me because my company is involved in digital fashion. While my last article focused on the basics of digital fashion, including the key drivers, in this article I want to explore the interesting and commercially viable use cases enabled by Web3 that can support digital fashion. think.
digital twin
A digital twin is a virtual representation of physical clothing created using 3D modeling or simulation. This NFT-enabled use allows you to create revenue streams that allow the sale of both items with different prices. Gucci’s digital handbag, for example, sold for more than the physical product. Digital twins also visualize the look and feel of clothing in different environments, enabling conveniences like virtual try-on that predict performance in the real world. Digital twins enhance a company’s design, manufacturing, and supply chain processes while delivering a superior consumer experience.
carbon tracking
Big brands in the fashion industry are investing heavily in ESG and want to expose their footprint in a transparent way. Current carbon tracking solutions are centralized, opaque and often unverifiable. Many organizations are skeptical about the reliability and accuracy of carbon data, while others accuse companies of “greenwashing.” Without technologies like blockchain, ensuring the integrity and non-repudiation of carbon data in a multi-party environment like Scope 3 emissions tracking can be difficult.
The Web3-led carbon tracking solution promises a secure and transparent way to monitor and track carbon emissions in a tamper-proof manner. By sharing Scope 1-2-3 emissions data, we ensure the accuracy and real-time audibility of data reported by different stakeholders across multiple fashion brands and suppliers. Automating processes through smart contracts greatly reduces the potential for human error, leading to greater cost efficiency and accuracy.
event ticket
Reports of ticket fraud have doubled since 2022. Millions of dollars are lost each year to ad fraud, bots and ticket fraud. Data shows that 40% of all online ticket bookings are performed by bots or automated software, increasing the risk of ticket scalping, including fraudulent ticket sales and fraud. Most illegal ticket sales occur in the unregulated secondary market, undermining customer confidence. The secondary market has unauthorized middlemen and malicious actors who prevent venues and artists from receiving a fair return on the value of tickets.
NFT tickets, such as fashion events, are stored on the blockchain to verify ticket and vendor authenticity and proof of legitimacy. NFTs can also offer unique perks such as upgraded seats, loyalty rewards, drink redemptions, and faster access through the queue. NFT tickets can also be transferred from wallet to wallet, reducing intermediary costs, eliminating duplicate sales and enhancing fan engagement with sponsors. brand. Resale can bring new revenue streams to fashion designers and brands.
marketing campaign
As demographics change with Millennials, Generation Z and Generation Alpha making up the majority of the consumer base, CMOs (Chief Marketing Officers) need to think differently. Web2 customer acquisition campaigns have their limits. Difficult to target non-email native demographics, rising cost of advertising platforms, difficult to measure ROI and opaque data present significant barriers to building meaningful customer relationships I’m here. The move to a cookie-free world is forcing fashion brands to use more transparent and privacy-centric tactics, collecting first-party data and identifying new ways to interact directly with customers. increase.
Web3 campaigns aim to improve customer engagement and reduce acquisition costs through NFT technology. The fashion brand can interact directly with customers or target her hard-to-reach Gen Z and millennial prospects. Web3 adds trust and transparency and eliminates the top cost of the funnel.
Loyalty points
One study found that the average US consumer participates in 16.7 loyalty programs, of which only half actively participate. The Web2 loyalty program can be complex, illiquid, opaque and closed, limiting the user experience, reducing redemption rates and reducing true loyalty.
Loyalty points today are often static and tactical. New Age consumers, such as millennials and Gen Z, expect to have different relationships with fashion brands, become owners, participate in communities, and be involved in the brand’s story. They also want to control their data and define how fashion brands can leverage their assets.
Web3 is redefining how fashion brands connect and reward consumers by offering collectibles, tokenized rewards, viral community engagement, and gamified loyalty engagement (physical and digital). You can improve your existing loyalty program by making changes. Consumers are rewarded for their level of engagement while maintaining full ownership of their data. Allow fashion brands to trade, transfer or redeem tokenized rewards on the marketplace, increasing trust and loyalty. Fashion brands can also open up new revenue streams and business models.
digital rental
A new exploratory business model using NFTs allows consumers to rent digital clothing and accessories for specific events, occasions or time periods without any up-front purchase commitment. At the end of the rental period, the item will be returned to its original owner. Standards such as ERC 4907 enable this use case.
in conclusion
The Web3-enabled digital fashion industry has the power to change the way businesses operate. By leveraging the decentralized and transparent nature of Web3, companies in the digital fashion sector will be able to offer fairer and more sustainable practices, improve supply chain transparency and traceability, and make data more accessible to consumers. You can create new business models that give you more control. As technology continues to evolve, a Web3-enabled business model will play a key role in shaping the future of digital fashion. By adopting these new and innovative approaches, companies in this sector can not only stay ahead of the curve, but also contribute to a fairer and more sustainable fashion industry.
