In contrast to 2022 — which Vogue called “the year of NFTs” — 2023 brought bankruptcies, scandals, and legal troubles for the cryptocurrency industry.
Thus, the appeal of “Web3” and “the metaverse” was absent from New York Fashion Week last February. However, in Milan, London and Paris – luxury fashion houses Gucci, Dior and Louis Vuitton have continued to embrace cryptocurrencies – but have chosen to abandon the technical jargon.
As we enter the Spring 24 season, we still have to ask – are cryptocurrencies still “in fashion”?
The fashion industry's answer is two-fold: The word “crypto” no longer exists, but the word “crypto” – the technology – very much exists.
Fashion’s relationship with cryptocurrencies – quiet luxury to “quiet technology”
In 2021, the fashion industry welcomed non-fungible tokens (NFTs – the core product of the blockchain industry) as a flashy luxury good – a digital complement to complement physical catalogues. NFTs added nearly $50 million to the bottom lines of Gucci, Tiffany's, and Dolce & Gabbana until a decline in sentiment toward cryptocurrencies ushered in a new era — “quiet tech.”
If “quiet luxury” is about elegance, quality and practicality – then “quiet technology” is about “show without telling” projects with real fashion value. As we enter 2024 – the “loud luxury” of non-fungible tokens (NFTs) may no longer make headlines – but investment in experimental, authentication and “digital physical” use cases is expected to soon take place.
Fashion and crypto today
Dior set a precedent in June — launching sneakers with pioneering sole authenticity enabled by blockchain — but without a single reference to Web3 or cryptography. Louis Vuitton and Gucci quickly followed suit. Gucci first – sharing its offering in its digital universe, renamed “Ancora”, and Louis next, launching a Discord server – “Via” – to enable community and communication between NFT holders in September.
In each case, technology has given way to utility. Gucci's Ancora show used the digital space to realize its vision of a global show unspoilt by rain, and Louis Vuitton's server showcased exclusive content to build the community.
As Alexandra Maslova — founder of digital fashion startup Seamm and a speaker at the Digital Couture Summit in February — told me in an interview: Brands’ interest in cryptocurrencies has not disappeared, it has changed.
“Brands had FOMO in 2021 and 2022 – they jumped into crypto and didn’t get the result they expected,” Maslova shared. “Now, they're doing things more slowly — still adopting new technology — but investing in what actually works versus what doesn't.”
An evolving relationship
Those in the blockchain industry have recognized this change – and are taking advantage of it.
“We want to create experiences that are accessible, and we see cryptocurrencies as a powerful way to unlock a lot of experiences,” Christopher Lee — founder of “physical-digital” brand IYK — told me in an original interview this fall. About details or names when we collaborate with brands.
Digital Twins Studios — a blockchain fashion consultancy known for working with traditional fashion brands like Alo — agreed: “We see this technology as something that should work under the hood.” “Abstracting the core technology creates friendlier use cases,” co-founder Adriana Soto-Wright noted in an interview.
At the same time, in the world of fashion, CEOs and heads of famous fashion houses such as Prada, Gucci and Dior focus on experiences, not on terms:
“Fashion needs to evolve, it needs to move away from catwalks, and move more towards experimentation as an industry.” Alice & Olivia CEO Stacey Bendet made the announcement last September.
From high-tech to experimental
This move toward experiences is forcing brands to be more creative when implementing cryptocurrencies. While 2021 and 2022 were punctuated by buzzy launches and hires — such as that of VP of Metaverse at Gucci and head of Web3 and Metaverse at LVMH — Web3's investments in 2023 and 2024 were subtle but overwhelming.
One of the most striking examples of this was Gucci's Ancora (translated “appearance”) show at Milan Fashion Week in September 2023. Gucci's “Dream Big” division – representative of the house's web and Metaverse investments – presented a real-world-like event across three Metaverse platforms with an onboarding experience suitable for everyone.
The team used references to real physical spaces – drawn from Milan's Brera district – to ease attendees into its immersive world. No technical know-how necessary.
Even at the Digital Haute Couture Summit in Milan in February 2024 — an event for tech-minded fashion insiders — there was consensus that “the next era of fashion and technology is not just about technology,” as event founder Nikita Sikaluk emphasized in an interview during the summit. .
Return to the material world
Even in the subfield of “physiological” fashion – a term often used to describe physical products with digital components – products are trending towards “cool” and minimalist brands:
“I would say we try not to include technical language as much, we realize it's just implementation details,” he told me when asked about their choice to describe their offerings as “physical digital” rather than “physical.” “We also didn't like the acoustics.”
Aside from the audio, more and more projects are returning to the “physical world” – with NFTs taking a backseat.
On June 23, Louis Vuitton introduced a series of “treasure chest” digital NFTs that enabled users to purchase exclusive physical pieces. Likewise, Gucci has made headlines for pairing physical ceramic structures like twins with digital artworks (NFTs). Prada went so far as to use NFTs as a pass to Milan Fashion Week in September.
authenticity
Arguably the most practical “soft tech” trend in fashion is the use of blockchain as an authentication tool.
Chanel was an early adopter of blockchain-powered authenticity — stealthily replacing its printed authenticity card with blockchain-enabled NFC microchips in the fall of 2021. In 2022, LVMH, Richemont and the Prada Group teamed up to form a non-profit alliance — Aura Blockchain. Consortium – with the express goal of using blockchain to fight the growing counterfeit industry.
Looking to the future
Those heading into the world of “quiet tech” express optimism about the sector:
In an original interview, Lior Cole — an IMG model and technology founder known for his presence in both industries — summed it up well: “Whether it's distilling technical jargon, reimagining the interface to deliver technology, or simply exploring what was previously impossible — it's just… “It’s only a matter of time before something makes blockchain technology ‘click’ for fashion.”
What could this “something” be? Starting in 2023, the word “blockchain” – itself – may be abolished.
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