NFTs, AR and phygital fashion: The year’s biggest tech stories

*To become a Vogue Business Member and receive the Technology Edit newsletter,* [*click here*](https://www.voguebusiness.com/membership){: target="_blank"}*.* This year, fashion tech made strides, lifted out of two years in lockdown. Physical and digital experiences combined. Culture shifted to embracing [“Web3”](https://www.voguebusiness.com/technology/the-fashion-execs-guide-to-web3) as more brands took part. Big tech and fledgling startups shared headlines and relevance, as blockchain and virtual goods continued to disrupt. For this reason, the tech story this year was largely dominated by Web3 and adjacent news and trends, as it’s rare that changes this significant move as quickly through fashion as they do in the wider cultural landscape. Naturally, this caused friction. This year faced a number of headwinds, again both caused by technology and by cultural resistance. Major brands, existing tech giants and entrepreneurs all adapted by shifting strategies. Many traded big launches for internal education and infrastructure. Here’s what to know about the top tech news and trends from 2022, informed by a comprehensive review of *Vogue Business* coverage. ## **Phygital: Products, places and personalities** For most, an all-digital pivot is a leap too far, so the big trend of 2022 was a word that the industry loves to hate: phygital, a merger of the digital and physical that makes use of new technology to offer the best of both worlds. This spanned products, places and personalities. [#article: /articles/629e07d7ce22a07cc352d0c9] In terms of products, we saw phygital goods in the literal sense, meaning products that have [both digital and physical iterations](https://www.voguebusiness.com/technology/fashions-next-nft-play-twinning-digital-nfts-to-physical-items), introduced through a range of mechanics that illustrate just how broad this technology can be. Prada [expanded its monthly limited edition Timecapsule drops](https://www.voguebusiness.com/technology/prada-expands-web3-offer-with-product-linked-nft-drop-and-discord-launch) with an NFT (and digital twin) layer. Carolina Herrera debuted a gown on the runway [and on Roblox simultaneously](https://www.voguebusiness.com/technology/a-digital-carolina-herrera-gown-just-sold-for-dollar2000-on-roblox); it sold for as much as $5,000. Puma [returned to its fashion roots](https://www.voguebusiness.com/technology/pumas-returning-to-the-fashion-arena-this-time-with-a-web3-layer) with physical footwear inspired by its digital imagination. Ralph Lauren created a [phygital collection on Fortnite](https://www.voguebusiness.com/technology/ralph-lauren-partners-with-fortnite-to-create-first-phygital-fashion-collection), including the option for players to wear a replica of their in-game footwear and a first-of-its-kind logo redesign. Nike-owned Rtfkt, which made a name for itself as one of the most prominent and successful digital fashion brands, fully endorsed the physical, with projects spanning [hoodies](https://www.voguebusiness.com/technology/why-nikes-next-web3-move-is-a-black-hoodie-rtfkts-founders-tell-all), [sneakers](https://www.voguebusiness.com/technology/nike-and-rtfkt-take-on-digital-fashion-with-first-cryptokick-sneaker), [fragrance](https://www.voguebusiness.com/technology/a-perfume-in-the-metaverse-byredo-and-rtftk-bet-on-visual-aura) and [luggage](https://www.voguebusiness.com/technology/rimowa-and-rtfkt-unveil-luxury-phygital-luggage-collab). Web3 culture also influenced physical goods in terms of [fandom](https://www.voguebusiness.com/technology/web3-merch-fashion-or-fandom), meaning that denizens were eager to [sport their tribal affiliations](https://www.voguebusiness.com/technology/cryptopunks-for-the-masses-nft-ownership-enters-a-new-phase) in the “real” world. Tiffany turned Cryptopunks into [custom jewelled pendants](https://www.voguebusiness.com/technology/tiffany-is-turning-cryptopunks-into-pendants-with-nftiff). [Tag Heuer](https://www.voguebusiness.com/technology/tag-heuer-watches-to-display-nfts-the-ultimate-status-symbol) and [Timex](https://www.voguebusiness.com/live/the-vogue-business-web3-and-metaverse-live-stream?id=6388c0b896c4b385526bd577) invited collectors to wear their PFPs on their sleeves, while [10KTF expanded into PFP tees](https://www.voguebusiness.com/live/the-vogue-business-web3-and-metaverse-live-stream?id=635749b6e88bc03c7ff927c5) and hoodies. Not to be outdone, physical events and places also benefitted from a new digital layer, often as a way to reward token-holders or expand an event’s participants. This was perhaps most evident at the end of the year, when [Art Basel Miami Beach hosted a number](https://www.voguebusiness.com/technology/at-art-basel-miami-the-first-true-test-of-web3s-fashion-perks) of fashionable [token-gated](https://www.voguebusiness.com/technology/token-gated-websites-are-web3s-virtual-velvet-rope) events. Earlier in the year, Salvatore Ferragamo celebrated the launch of its new Soho store with [a physical NFT-creation booth](https://www.voguebusiness.com/technology/have-a-free-nft-with-your-sneaker-salvatore-ferragamo-gets-web3-cool-in-soho-store); while [Cult & Rain hosted a London-based party](https://www.voguebusiness.com/technology/what-happens-when-web3-natives-throw-a-physical-party-the-real-metaverse) that it echoed virtually. During fashion month, Tommy Hilfiger’s show was supplemented with [a Roblox broadcast](https://www.voguebusiness.com/fashion/from-brooklyn-to-roblox-tommy-hilfiger-makes-nyfw-show-phygital); and *Vogue* World and [Christian Louboutin](https://www.voguebusiness.com/live/the-vogue-business-web3-and-metaverse-live-stream?id=633580696ce53b5878514aab) each rewarded attendees with [POAPS](https://www.voguebusiness.com/technology/proofs-of-attendance-are-web3s-new-status-symbol). [#gallery: /galleries/639b048ffbe16444ff61f66c] [Avatars](https://www.voguebusiness.com/technology/gen-z-wants-digital-fashion-how-do-different-avatars-stack-up) also got an upgrade. PFPs from popular collections such as World of Women and Bored Ape Yacht Club [enjoyed duds from Gucci](https://www.voguebusiness.com/technology/profile-picture-nfts-are-hot-fashion-is-starting-to-dress-them); Non-Fungible People got a [Clinique-provided makeover](https://www.voguebusiness.com/technology/cliniques-glam-squad-bridges-diversity-gap-in-avatar-pfp-makeovers); and a CGI Marilyn Monroe [wore new looks from Fendi](https://www.voguebusiness.com/technology/a-virtual-marilyn-monroe-in-fendi-and-miu-miu-how-the-icons-estate-is-getting-a-web-30-revival); and our Meta-created avatars [got the opportunity to dress in digital fashion](https://www.voguebusiness.com/technology/metas-new-digital-fashion-marketplace-will-sell-prada-balenciaga-and-thom-browne) ranging from Balenciaga to [indie designs from DressX](https://www.voguebusiness.com/technology/metas-avatars-just-got-a-fashion-upgrade-with-dressx). Meanwhile, brands and influencers including [Nars](https://www.voguebusiness.com/technology/why-narss-new-brand-ambassadors-are-all-virtual), [Dermalogica](https://www.voguebusiness.com/beauty/dermalogica-is-using-a-virtual-human-to-train-real-people) and [Lil Miquela](https://www.voguebusiness.com/technology/virtual-influencer-miquela-is-back-this-time-brands-are-metaverse-ready) all explored entirely imagined characters. Speaking of characters, [virtual stores](https://www.voguebusiness.com/technology/why-virtual-shopping-still-matters-for-the-holidays) and gaming platforms still had a big year, often offering a way for brands to both test virtual goods and to get in front of [new audiences](https://www.voguebusiness.com/technology/gen-z-gamers-help-industry-reach-dollar222-billion). [Roblox was a key platform](https://www.voguebusiness.com/technology/sidebars-limiteds-and-digital-gowns-how-fashion-can-win-on-roblox), having evolved from “gaming platform” to a more general virtual world. [Gucci](https://www.voguebusiness.com/technology/calling-all-gamers-gucci-wants-you) [expanded its Roblox presence](https://www.voguebusiness.com/technology/when-it-comes-to-roblox-gucci-is-not-playing-around) with a “persistent” space and built on that with [a new space in The Sandbox](https://www.voguebusiness.com/technology/gucci-vault-opens-metaverse-world-in-the-sandbox-with-games-and-vintage-fashion), which sold digital Gucci as NFTs. Burberry, whose gaming projects [garnered a new award from the British Fashion Council’s Fashion Awards](https://www.voguebusiness.com/live/the-vogue-business-web3-and-metaverse-live-stream?id=638e6c3d8a4a2af09ee729d5); [partnered with Minecraft](https://www.voguebusiness.com/technology/burberry-partners-with-minecraft-as-it-goes-deeper-into-gaming); [backed female gamers](https://www.voguebusiness.com/technology/burberry-to-back-female-gamers-in-esports-inclusivity-push); [sold imaginative bags on Roblox](https://www.voguebusiness.com/technology/only-on-roblox-why-burberry-is-selling-one-off-cloud-and-foliage-covered-virtual-bags); and expanded its tie-up with [Blankos Block Party](https://www.voguebusiness.com/technology/burberry-brings-back-the-blankos-block-party-nft-based-game). Finally, it’s worth noting that [gamers aren’t the only ones](https://www.voguebusiness.com/technology/its-not-just-gamers-and-crypto-dudes-buying-digital-fashion) buying [digital fashion](https://www.voguebusiness.com/technology/the-digital-designers-making-millions-from-in-game-fashion). ## **Friction leads to adaptation and infrastructure** The technologies and the behaviours and products they are enabling are all quite new, leading to friction and failures within the context of an already volatile crypto market. Risk-tolerant brands and early adopters often learned the hard way, with NFTs drops that [faced bots and scammers known as “copymints”](https://www.voguebusiness.com/technology/bots-crashes-and-copymints-when-nft-drops-go-wrong.). Crypto’s lofty heights plummeted as the hype cooled, [slowing the pace of splashy NFT drops](https://www.voguebusiness.com/technology/nft-stunts-are-out-why-the-crypto-bear-market-is-resetting-fashions-web3-strategy). More recently, [the collapse of crypto trading platform FTX](https://www.voguebusiness.com/technology/what-the-crypto-crash-means-for-fashions-web3-projects) only reinforced concerns that the nascent space is unstable. Metaverse Fashion Week on Decentraland arrived in a flash of unprecedented [anticipation and, for some, disappointment](https://www.voguebusiness.com/technology/metaverse-fashion-week-the-hits-and-misses). Similarly, Web3 communities and technologies [struggled to fit in at New York Fashion Week](https://www.voguebusiness.com/technology/at-nyfw-fashion-struggles-to-figure-out-where-web3-fits), prompting a philosophical quandary on [who defines taste in the new phase of the internet](https://www.voguebusiness.com/technology/in-the-world-of-web3-fashion-who-defines-taste). New legal challenges prompted many to [trademark their marks in digital spaces](https://www.voguebusiness.com/technology/how-to-trademark-the-metaverse). Nike and StockX sounded off on the legalities and limits of NFTs; [Nike sued StockX](https://www.voguebusiness.com/technology/nike-sues-stockx-over-nfts), but [StockX said Nike didn’t understand its new NFT strategy](https://www.voguebusiness.com/technology/stockx-says-nike-shows-fundamental-misunderstanding-of-nfts-in-lawsuit). Brands got an education internally — weighing the nuances of [new needs like crypto wallets](https://www.voguebusiness.com/technology/how-fashion-should-navigate-the-world-of-crypto-wallets) and [ENS domains](https://www.voguebusiness.com/technology/why-brandeth-is-the-new-brandcom) — and they [educated customers simultaneously](https://www.voguebusiness.com/technology/fashions-next-web3-opportunity-teaching-customers-about-nfts-and-crypto-wallets). Often, they shared FAQs on a new social platform: [Discord](https://www.voguebusiness.com/technology/how-discord-became-the-soho-house-of-web-30). [#article: /articles/61e59043254c756b3eb0352c] To smooth the transition, many [adopted a “Web2.5” mindset](https://www.voguebusiness.com/technology/web3-is-still-elusive-web25-may-be-a-safer-option), occasionally [rebranding NFTs as “digital collectibles”](https://www.voguebusiness.com/technology/web3-has-a-branding-problem-its-not-just-semantics). Brands quickly boosted infrastructure under the hood, racing to [build new Web3 teams](https://www.voguebusiness.com/technology/the-fashion-execs-guide-to-building-a-web3-team), [hire Web3 consultants](https://www.voguebusiness.com/technology/navigating-the-metaverse-the-new-agencies-talk-what-to-watch) and form new partnerships. [L’Oréal and Meta launched a metaverse startup accelerator](https://www.voguebusiness.com/technology/loreal-and-meta-launch-metaverse-startup-accelerator); and similarly, [Farfetch relaunched its accelerator to be all-Web3](https://www.voguebusiness.com/technology/farfetchs-all-web3-accelerator-focuses-on-digital-fashion-scale-and-next-wave-thinking). [Metaverse Fashion Week announced that it would return](https://www.voguebusiness.com/technology/metaverse-fashion-week-to-return-next-year) — this time with more time to plan and more interoperability. Multiple companies began accepting cryptocurrencies, including [Gucci](https://www.voguebusiness.com/technology/gucci-takes-the-leap-will-accept-crypto-in-us-stores), [Farfetch](https://www.voguebusiness.com/technology/farfetch-to-accept-crypto-payments) (and FPS clients), [Tag Heuer](https://www.voguebusiness.com/technology/lvmh-owned-watchmaker-tag-heuer-to-accept-crypto-payments) and [Off-White](https://www.voguebusiness.com/technology/want-to-spend-your-crypto-on-fashion-off-white-now-accepts-it). Startups with Web3 and metaverse expertise [had a good year](https://www.voguebusiness.com/technology/metaverse-fashion-companies-are-pulling-millions-in-funding). Arianee, which [raised €20 million](https://www.voguebusiness.com/companies/web3-platform-arianee-raises-euro20-million), [partnered with POAP](https://www.voguebusiness.com/technology/arianee-and-poap-team-up-to-bring-digital-proof-of-attendance-to-the-masses), while [Warner Music Group tapped DressX](https://www.voguebusiness.com/technology/warner-music-group-and-dressx-partner-to-create-digital-merch) to build digital merch for artists. Other experts founded new companies or pivoted business models to scale and monetise knowledge. Investor and influencer Gmoney, fresh off an Adidas collab, [launched his own luxury label](https://www.voguebusiness.com/fashion/vault-it-wear-it-or-resell-it-inside-gmoneys-luxury-label-launch), while those including The Fabricant, [Charlie Cohen](https://www.voguebusiness.com/live/the-vogue-business-web3-and-metaverse-live-stream?id=6392430ec4660c3ea7bd03fa) and [Tribute Brand](https://www.voguebusiness.com/technology/tribute-brand-wants-to-be-digital-fashions-go-to-platform) built out the ability to provide tech to others. Alice Delahunt, after senior leadership roles at Burberry then Ralph Lauren, [founded Syky](https://www.voguebusiness.com/technology/ralph-laurens-former-digital-chief-launches-web3-fashion-platform) in hopes of bringing digital fashion to the mainstream. ## **Social media, big tech and AR** Not all news was blockchain-based, of course. Augmented reality continued its onward march as the tech became more sophisticated. Snapchat, for the first time, made its [industry-leading AR capabilities available to outside apps](https://www.voguebusiness.com/technology/why-snapchat-is-giving-away-its-ar-try-on-shopping-tools); [Bottega Veneta launched an AR app](https://www.voguebusiness.com/technology/bottega-veneta-launches-ar-app-to-tease-blazys-first-show); [Burberry used AR to boost handbag sales](https://www.voguebusiness.com/technology/burberry-bets-on-ar-to-boost-handbag-sales); and *Vogue* World [partnered with Snap on AR fashion try-on](https://www.voguebusiness.com/technology/vogue-world-partners-with-snap-on-ar-filters-fashion-try-ons). [#article: /articles/626aa7a99da5e8fde2654ec4] YouTube, Instagram and TikTok (where [Off-White streamed a show](https://www.voguebusiness.com/technology/off-white-makes-tiktok-debut-to-stream-its-next-show)) [continued to compete for influencer activity](https://www.voguebusiness.com/technology/the-creator-economy-tech-battle-youtube-shorts-steps-up-to-tiktok-and-instagram) and [traction among fashion](https://www.voguebusiness.com/technology/meta-versus-tiktok-who-will-win-fashion). Instagram had to [roll back some of its changes](https://www.voguebusiness.com/technology/instagram-may-have-backtracked-but-video-is-coming-tiktok-meta-reels), amid a resistance to its video push. Still, video shopping [still struggled to enjoy the momentum](https://www.voguebusiness.com/technology/video-shopping-in-the-west-hasnt-matched-the-hype-will-it) that the pandemic had once suggested. Later in the year, Twitter [alienated](https://www.voguebusiness.com/technology/if-its-goodbye-to-twitter-where-will-its-fashion-community-meet) some of the fashion community, and Instagram [opened up its platform to displaying NFTs](https://www.voguebusiness.com/technology/instagram-wants-creators-to-normalise-nfts). Google introduced a [new visual search tool](https://www.voguebusiness.com/technology/googles-new-visual-search-tool-plays-to-fashion-crowd); and [Pinterest acquired AI shopping app The Yes](https://www.voguebusiness.com/technology/pinterest-to-acquire-ai-shopping-app-the-yes-in-fashion-bid); while Amazon continued its fashion push with its [first techy fashion store](https://www.voguebusiness.com/technology/whats-inside-amazons-first-techy-fashion-store). *Comments, questions or feedback? Email us at* [*feedback@voguebusiness.com*](mailto:%20feedback@voguebusiness.com)*.* **More on this topic:** [The rise of Web3: How the year in tech changed fashion forever](https://www.voguebusiness.com/technology/the-rise-of-web3-how-the-year-in-tech-changed-fashion-forever?itm_source=manual_article_recommendation){: target="_blank"} [The fashion exec's guide to Web3](https://www.voguebusiness.com/technology/the-fashion-execs-guide-to-web3?itm_source=manual_article_recommendation){: target="_blank"} [Web3 has a branding problem. It’s not just semantics](https://www.voguebusiness.com/technology/web3-has-a-branding-problem-its-not-just-semantics?itm_source=manual_article_recommendation){: target="_blank"}

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