Metaverse fashion: overhyped or undervalued?

Welcome to the 28th edition of Fashion 4.X! This week, we're asking hard questions about a buzzy topic in the fashion tech world: metaverse and digital-phygital fashion. Promising innovative ways to express style in virtual realms and drive sustainable sales, this space has captivated brands, investors, and creators alike. However, a closer look reveals a more complex landscape, where excitement and industry hype don't always translate into widespread consumer adoption. Are we witnessing the early growing pains of a groundbreaking movement, or does the digital fashion frontier have steeper challenges to overcome? Let’s unpack what’s really happening and see if the hype matches the reality.

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Platforms like SYKY and DRESSX are leading names in digital fashion, but their social media engagement tells a different story. SYKY, with estimated $3 million annual revenue and 26 employees, and DRESSX, boasting $21 million in revenue and 92 employees, both appear to struggle to show mainstream appeal through online interactions. Despite DRESSX raising $18.2 million and SYKY securing $9.5 million in Series A funding, it's unclear how much of this reflects actual consumer purchases versus investor optimism. Concrete revenue data for digital fashion sales remains elusive, leaving questions about true market demand.

Further scrutiny of the market landscape raises questions about the commercial viability of digital fashion assets outside of gaming and luxury sectors. While platforms like Roblox have found success with younger demographics purchasing billions of digital apparel and accessory items, the adoption of NFTs and digital fashion among a broader audience appears limited (and "phygital" seems to translate primarily to T-shirts printed with an NFT). Notably, DRESSX's recent departure of their VP of Global Partnerships, Carine La Roche, could indicate internal shifts in response to market realities. This development invites speculation about the company's strategic direction and the overall health of the digital fashion sector. We are eager to hear your thoughts: is the metaverse fashion movement a fleeting trend, or does it hold enduring potential? What are the opportunities and challenges you see?

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?? Your shoes smell fake: Osmo’s cutting-edge AI technology takes sneaker authentication to the next level—literally sniffing out counterfeit kicks.

?? Sweaty Betty ’s parent company is launching a Global Innovation Hub in Boston, set to become a powerhouse for advancing fashion innovation and design in the US.

?? Goddiva transforms online shopping with ZylerAI ’s AI-driven Digital Dressing Room, bringing virtual try-ons to occasionwear customers.

Watch this factory on a tiny UK island attack sustainable production with robots for on-demand, zero-waste supply chain:

Follow these folks to see their POV and happenings in their corner of the fashion world:

Jackie T. , Managing Director at New York Fashion Tech Lab

Samuel Alexander , CEO, C2C Fashion and Technology

Simone S. Oliver , Senior Vice President, Digital Content, BET Networks

Suna Hasan , Head of AI Fashion at Streamoid

David Birnbaum , "The Garment Guru"

Alessandro Pierattini , Sustainable Textiles Researcher

Vanessa Barboni Hallik , CEO, Another Tomorrow

About Balodana: we are "fashtechies" who are passionate about revolutionizing the fashion industry's impact on the environment. Talk with us about our new Custom Fashion Lab on-demand manufacturing and personalized supply chain solutions, to reshape sustainability and sizing inclusion in fashion.

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