This article will take you through the impact of Web3 on the world of fashion along with its potential future.

Article Outline

• The Role of Web3 in Fashion

• Notable Web3 Fashion Projects

• Closing Remarks

The Role of Web3 in Fashion

As of 2022, the fashion industry is valued at $1.7 trillion USD. However, despite it being such an expansive industry, many remain unsure over the role Web3 could play in fashion.

After all, many are used to fashion being both personal and physical, something you can wear at gatherings and parties, with friends and family. Something that you can touch and feel. However, fashion doesn’t just have to be physical. Fashion is also a form of self-expression and autonomy, something you can share, identify with, and maybe even collect. Not only can Web3 tech help facilitate this, it already has started to.

1/ Web3 as Identity

Whilst Web1 was limited to users only being able to access information from content producers with little to no interaction, Web2 was known as the “social web”, a place where users were empowered to participate as producers of content too. In that sense, Web3 is the “identity layer” of the internet, where users can explore their identity in various forms, shapes, and sizes, unfiltered by the constraints of reality. Web3 allows for our imagination to run wild through various explorable digital worlds (i.e. metaverses like Meta, Decentraland, and Sandbox) and digital avatars (i.e. “pfp NFTs” - profile picture NFTs). It is therefore a natural fit for the fashion industry, an industry that aims to allow customers to express their identities through various styles of clothing, apparels, and accessories.

2/ Fashion as Digital Wearables

Digital wearables aren’t anything new. In fact, the gaming industry is a tried and tested platform for virtual fashion. Gamers frequently purchase in-game add-ons such as new weapons, cosmetic upgrades, and even skins for their digital characters. According to research from Newzoo and DMarket, skins are becoming one of the most profitable avenues in the gaming industry and have become a key monetization tool in free-to-play games, grossing a total of $40 billion USD a year. Additionally, 75% of players who are interested in skin trading say they would spend more on them if they had a monetary value outside of the game. Web3 readily enables this and something that metaverses, such as Decentraland and Sandbox, are quickly catching-up on with the release of many in-game digital wearables.

3/ Fashion as Digital Collectibles

Web3 can also open the door for fashion brands to release digital collectibles in the form of NFTs, something many brands have already started doing.

According to Market Decipher, NFT collectibles are projected to constitute more than 30% of all collectibles by 2031.

The NFT market remains in its infancy, yet currently holds a market cap of $2.3 billion USD and is projected to grow to $231 billion USD by 2030.

4/ Phygital Fashion

“Phygital” fashion bridges the gap between the physical and digital world. It allows brands to link their physical items to digital collectibles, accessories, wearables, secondary markets and vice versa. In that sense, fashion brands and creators can allow customers to access their purchased clothes and accessories in the digital world (i.e. metaverses), and the blockchain (i.e. NFTs).

Notable Web3 Fashion Projects

1/ RTFKT

RTFKT is a creator-led organization that uses the latest in game engines, NFT, blockchain authentication and augmented reality, combined with manufacturing expertise to create one of a kind sneakers and digital artifacts. The firm’s presence in the digital asset space demonstrates that the fashion industry hopes to leverage, and partner with, other NFT companies in the industry. RTFKT was also acquired by Nike in December 2021 as the brand showed interest in creating virtual sneakers after filing new trademarks, specifically for virtual shoes and apparel.

RTFKT initially launched with a primary interest and focus on virtual sneakers, Clone X. This 20,000 PFP collection, released in collaboration with Takashi Murakami, a well-known Japanese contemporary artist, is one of its most popular releases to date. The collection has amassed over 238,000 ETH in secondary sales (equivalent to $285 million USD) and currently sits at a floor price of 7.5 ETH (~$9,000 USD).

The team describes Clone X as their most ambitious project to-date, as well as the beginning of a whole ecosystem for their community, a collection of 20,000 quality-focused, high-end avatars, ready for the metaverse.

2/ Azuki

Launched by Chiru Labs in January 2022, Azuki started as a collection of 10,000 avatars, each giving its holder membership access to an online club called The Garden. The collection’s artstyle made it an immediate success and helped it become one of the biggest collections in the NFT space. Today, Azuki sits at a 9.75 ETH (~$11,700 USD) floor price and has seen over 267,000 ETH (~$320 million USD) in secondary trading volume.

Various Azuki avatar NFTs

Azuki describes itself as a brand for the metaverse starting with exclusive streetwear collabs, NFT drops, live events, and much more that will be revealed over time.

“An Azuki is your identity in the metaverse — let's build together.” - Azuki

One of its latest collaborations is with AMBUSH, an experimental jewelry line of innovative pop art-inspired designs capturing a distinct Tokyo aesthetic. The collaboration is a drop consisting of four limited edition phygital pieces inspired by Shao's intrepid spirit and tenacity, it is a bold representation of traditional Eastern craftsmanship, minimalistic design, and web3 culture.

“We are proud to collaborate with AMBUSH to explore the intersection of different subcultures and web3 technology via the lens of fashion.” - Azuki

Its collaboration also makes use of the latest technology introduced by Azuki, the Physical Backed Token (PBT), an open source token standard tying a physical item to a digital token on the Ethereum blockchain. For more information about PBTs, check out a1rport’s recent podcast discussing PBTs with mxuNFT.

3/ NFTiff

NFTiff is a collection of 250 custom NFTs designed to become a digital and physical pendant of the beholders CryptoPunk created by Tiffany & Co. The collection has so far amassed a little under 2,000 ETH in secondary volume (~$2.4 million USD) and sits at a floor price of 50 ETH (~$60,000 USD).

“Tiffany & Co. designers will interpret each CryptoPunk into custom-designed pendants – converting the 87 attributes and 159 colors that appear across the collection of 10,000 CryptoPunk NFTs to the most similar gemstone or enamel color.” - Tiffany & Co.

4/ Prada Timecapsule

Launched for the first time in December 2019, Prada Timecapsule is a monthly online event. For 24 hours, each first Thursday, an exclusive item which forms part of this collection is made available on Prada in very limited quantities in selected markets. Prada is expanding its creative presence in Web3 with its time capsule NFT collection with each limited edition physical product accompanied with a gifted NFT.

A twitter user by the name of NakedCollector has also created a Web3 Fashion Database detailing an extensive list of brands and projects in the Web3 Fashion industry.

Closing Remarks

TL;DR

Here are the summarized points made throughout this article:

• Web3 is the internet’s identity layer, serving as a place where users can explore their identity in various forms, shapes, and sizes, unfiltered by the constraints of reality through digital worlds (i.e. metaverses) and digital avatars (i.e. “pfp NFTs” - profile picture NFTs).

• Web3 fashion covers three large avenues: digital wearables (mostly used in metaverses like Decentraland’s and Sandbox’s), digital collectibles (in the forms of NFTs), and phygital fashion (allowing us to bridge the gap between the physical and digital world).

• RTFKT, Azuki, NFTiff, and Prada Timecapsule are all noteworthy Web3 fashion-related projects with a prominent foundation in the NFT space and a promising future ahead.

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