The year of normalisation: 2023’s top fashion-tech predictions

*This article on fashion-tech predictions is part of our Vogue Business Membership package. To enjoy unlimited access to Member-only reporting and insights, our NFT Tracker and TikTok Trend Tracker, weekly Technology and Sustainability Edits and exclusive event invitations, sign up for Membership* [*here*](https://www.voguebusiness.com/membership)*.* In 2021, fashion entered the metaverse. In 2022, it navigated the rise of Web3. This year, we’ll see these technologies continue to converge, amounting to greater scale and — importantly — normalisation. Web3 and metaverse principles will no longer need to be explicitly designated, siloed or defined as they influence fashion tech projects. Instead, concepts including blockchain, NFTs, virtual worlds — and a new approach to artificial intelligence — will be simply experienced. That will be achieved via infrastructure: mechanisms for creating, buying and selling Web3-related projects will be improved, leading to a better experience for brands, creators and their communities. This comes after a period of intense hype and a series of setbacks that were both technical and cultural. The backdrop will prove challenging. Economic recessions across the world mean brands need to first sort out the basics and may take fewer risks. The [crypto crash](https://www.voguebusiness.com/technology/what-the-crypto-crash-means-for-fashions-web3-projects) that came at the end of 2022 is still hanging overhead. “Marketing and innovation budgets are going to get slashed, and markets will have to play it safe,” Mike Proulx, VP research director at advisory firm Forrester, recently told *Vogue Business*. [#article: /articles/639265ce2a2a5dac86c14b3e] Just don’t consider it an innovation pause. Experts say this is a natural and overdue reckoning that aims to tap into long-term potential, and we’ll see more of what this new era of technology can do in 2023. “Ten or 20 years ago, brands required a lot of convincing to get them to see the potential in whatever new tech was available,” says Sébastien Badault, who oversees Web3 brand collaborations at Ledger, which [provides a hardware wallet for securing assets](https://www.voguebusiness.com/technology/how-fashion-should-navigate-the-world-of-crypto-wallets), after a career liaising with brands for Alibaba’s Luxury Pavilion, for Google and for Amazon. “With Web3, I would say it is the other way around. They are more eager to embrace the technology than anything I have seen in the past 20 years.” ## **Infrastructure, overdue for an overhaul, is a top priority** In the early days of the pandemic, NFTs and, later, metaverse and Web3 technologies saw a surge in interest as crypto billionaires minted NFTs from valuable collections known as “blue chips” and innovation budgets pivoted to digital-only projects. However, the rollout was bumpy. In a rush to get flashy new drops in front of consumers, [projects suffered technical challenges](https://www.voguebusiness.com/technology/bots-crashes-and-copymints-when-nft-drops-go-wrong) and often a lack of follow-through for early collectors. Excitement has waned. “People used to say, ‘The internet is so slow.’ We are at the same moment,” Badault says. To improve the experience and scale usage, brands are investing more in infrastructure. This means working with startups like Ledger, continuing to [upskill and hire talent](https://www.voguebusiness.com/technology/the-fashion-execs-guide-to-building-a-web3-team) and [fostering incubators and accelerators](https://www.voguebusiness.com/technology/loreal-and-meta-launch-metaverse-startup-accelerator). It also means that founders with expertise in both fashion and Web3 are launching their own solutions: companies including [Syky](https://www.voguebusiness.com/technology/ralph-laurens-former-digital-chief-launches-web3-fashion-platform), [Tribute](https://www.voguebusiness.com/technology/tribute-brand-wants-to-be-digital-fashions-go-to-platform) and [Rstlss](https://www.voguebusiness.com/live/the-vogue-business-web3-and-metaverse-live-stream?id=6392430ec4660c3ea7bd03fa) are all poised to offer creator and brand-focused tools in the new year. +++pullquote People used to say, ‘The internet is so slow.’ We are at the same moment.” +++ Companies and investors will prioritise tools that streamline processes such as creating 3D renders and integrating them into metaverse worlds, says Jun Park, an investor at investment firm Hashed, who focuses on crypto investments through the lens of gaming. People want the ability to use assets across platforms, he says, and it currently can take hours to integrate them. Hashed recently invested in Vrism, for example, which combines digital twin technology with extended reality content. Other startups, he says, enable brands to more easily convert product imagery into a range of 3D asset file types. Another key focus, Park adds, are tools that enable interoperability, meaning the ability for a person’s owned digital assets to work across multiple platforms. This March, [the return of Metaverse Fashion Week (MVFW)](https://www.voguebusiness.com/technology/metaverse-fashion-week-to-return-next-year) will bring a few updates: interoperability with other platforms, and more time and help for brands who want to participate, MVFW head Giovanna Graziosi Casimiro told *Vogue Business*. ## **Discrete or invisible tech comes to the forefront** The push toward maturation means that brand projects in 2023 might not launch with the same high-profile fervour as before. Branded NFTs will no longer be considered out-of-the-norm, and the tech might be used to supplement existing products, meaning adding an NFT layer to physical goods or moments, using it internally or adding new value to [secondhand or vintage pieces](https://www.voguebusiness.com/live/the-vogue-business-web3-and-metaverse-live-stream?id=6397ac85c4660c3ea7bd04d2). In other words, the tech isn’t the focus: the improved experience is now in the limelight. Marketers are already shying away from the term “NFT” and other jargon that might turn off consumers. Parker Todd Brooks, the VP of NFTs at Ledger, predicts that [so-called phygital projects](https://www.voguebusiness.com/technology/fashions-next-nft-play-twinning-digital-nfts-to-physical-items) — meaning physical goods that are tied to NFTs, in the vein of Prada’s Timecapsule drops — will become the norm. He points to Spatial Labs’s LNQ, whose [chip-enabled clothing](https://www.voguebusiness.com/technology/fashions-next-nft-play-twinning-digital-nfts-to-physical-items) could grant people [access to events](https://www.highsnobiety.com/p/spatial-labs-lnq-iddris-sandu-nft/). Adding a digital twin or similar component to existing products doesn’t require brands to upend their business model or add an entirely new supply chain. They can also avoid the risk of so-called speculative assets, such as artistic NFT collections, that require consumers to attach a monetary value to the brand’s digital-only experiments. At the same time, by offering a Web3 layer to existing sales, brands can onboard customers to the technology, Brooks says. +++pullquote We’re going to see a lot more integration of ‘networked products’ or ‘connected fashion’ or ‘fashion plus’ or ‘phygital’.” +++ “We’re going to see a lot more integration of ‘[networked products](https://www.voguebusiness.com/fashion/vault-it-wear-it-or-resell-it-inside-gmoneys-luxury-label-launch)’ or ‘connected fashion’ or ‘fashion plus’ or ‘phygital’ — or whatever term you want to use,” says Cathy Hackl, chief metaverse officer at consultancy and creative firm Journey. She says she is personally launching three “connected” collections in the fashion space in 2023, in partnership with brands. To this end, brands might also combine efforts to use blockchain for product authenticity with resale programmes, as attaching a physical good to an NFT enables them to earn secondary sales revenue. They might also digitise valuable vintage pieces; this enables a new audience to wear special pieces, and enables the brand to monetise them without wear and tear. Already, [startup Mntge](https://www.voguebusiness.com/live/the-vogue-business-web3-and-metaverse-live-stream?id=6397ac85c4660c3ea7bd04d2), which digitises vintage clothing, partnered with Gucci on its inaugural drop; 10 members of Gucci Vault had the chance to get an allowlist spot. ## **Experiences get an upgrade — just don’t say “metaverse”** Expect 2023 to host enhanced digital, physical and hybrid events, with virtual identities taking centre stage. “We're going to move beyond just the marketing moments to truly impactful experiences that tie both the virtual and the physical world and not just one-offs,” Hackl says. Semantics are continuing to shift when it comes to virtual spaces; gaming platforms have already shifted to be seen as metaverse spaces, but the term “metaverse” is no longer in favour, says Olivier Moingeon, co-founder and CCO at NFT platform Exclusible. “‘Metaverse’ is becoming a forbidden word, replaced by ‘immersive’ or ‘virtual experiences’”, he says. Consultancy The Future Laboratory, in its annual luxury predictions report, [called it a “betterverse”](https://www.thefuturelaboratory.com/reports/2022/the-betterverse){: target="_blank"}, that places “people and ethics first”. Immersive storytelling — experiences that use emerging technologies to increase the audience’s sense of presence — is at the forefront of experiences created by The Fashion Innovation Agency at the London College of Fashion, says agency head Matthew Drinkwater. Avatars and digital personalities are also in for a busy year. Debra Langley, a Singapore-based fashion-tech consultant and investor with Lyra Ventures, anticipates an explosion in the use of virtual influencers by brands and retailers (expect [more from Nars](https://www.voguebusiness.com/technology/why-narss-new-brand-ambassadors-are-all-virtual) on that front), and consumers each deploying multiple avatars. There’s “incredible data for personalisation from that”, she notes. +++pullquote ‘Metaverse’ is becoming a forbidden word.” +++ Physical events and the experience of buying products are also due for a Web3 upgrade, especially now that multiple brands have distributed multiple tokens and many consumers have collected a range of them. “We see new ways of creating loyalty programmes through experiences,” says Sebastian Orellano, founder and director of [agency POAP Studio](https://www.voguebusiness.com/technology/proofs-of-attendance-are-web3s-new-status-symbol). “It is starting to be quite easy to identify people engaging somehow with brands even if they are not at all clients,” he says. Brands are looking to get more out of their experiments. Among those Exclusible’s Moingeon works with, there’s a push for return on investment (or at least clear metrics); high-fidelity 3D (he predicts more environments generated using 3D creation tool Unreal Engine 5); and immersive and experiential commerce (with gamification mechanics). He sees a “revival” of enthusiasm around [loyalty, engagement and token-gating](https://www.voguebusiness.com/technology/token-gated-websites-are-web3s-virtual-velvet-rope), while Ledger’s Badault sees the opportunity to offer perks that utilise multi-prong collections. “If you have token X and token Y of whatever artists, and Z of whatever expo, with these three you have access to whatever product,” he says. “People can see how Web3 allows you to do something that is totally new. Before, you would have had to do what? Show a receipt of a product you bought?” He adds that developing this in a bear market, in which the value of both crypto and the stock market are low, means that projects that weren’t up to muster have likely already been cut. ## **A creative AI revival** Drinkwater as well as digital artist Krista Kim are also excited about new uses for artificial intelligence and creativity. While AI is not a new technology to hit fashion’s radar, it has recently had newfound interest as a creative tool. This is especially true for a concept called generative art, which is at least partly created autonomously. With generative art, people can input various images or prompts to receive AI-created pieces. This is how developers of [popular NFT collections](https://www.voguebusiness.com/technology/profile-picture-nfts-are-hot-fashion-is-starting-to-dress-them) such as the Bored Ape Yacht Club and Cryptopunks created thousands of variations of a various number of traits. More recently, apps like Lensa generated artistic profile pics informed by user-submitted selfies. Tech experts and early adopters have begun looking at AI art in new ways to harness creativity. Already, [computer-generated Nike designs](https://hypebeast.com/2022/12/nike-sneakers-artificial-intelligence-ai-clothingdaily-viral-instagram-tiktok) have gone viral on TikTok, and fashion supply chain company Cala, which started as a “plug-and-play” tool for influencers, has [expanded into AI-generated designs](https://www.prnewswire.com/news-releases/powered-by-dall-es-ai-system-cala-makes-it-possible-to-generate-apparel-accessory-shoe-and-lifestyle-product-designs-from-natural-language-descriptions-and-reference-images-301654308.html), enabling people to generate new visual designs from text or uploaded reference images. This marks an evolution from machine learning-informed designs from the likes of Stitch Fix and Rent the Runway. While some traditional creators have expressed concern for years about computers obviating the need for artistic talent, others say that the tools still need human input and curation, and help build access to creativity. “Any artist who starts to make a piece of work will reference past art, whether it's somebody referencing Aztec art in their performance or referencing pop art or whatever it is,” says photographer Nick Knight, who recently released a collection of 8,000 art NFTs that used generative technology. “That's part of a cultural history that we all have, but what these apps are doing is just setting it up in a much more spontaneous way.” *Correction: Debra Langley's title has been updated for accuracy. 4 January, 2023* *Comments, questions or feedback? Email us at* [*feedback@voguebusiness.com*](mailto:%20feedback@voguebusiness.com)*.* **More on this topic:** [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) [Instagram wants creators to normalise NFTs](https://www.voguebusiness.com/technology/instagram-wants-creators-to-normalise-nfts?itm_source=manual_article_recommendation){: target="_blank"} [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)

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