ZUCK SAYS 2025 IS THE YEAR FOR THE METAVERSE AND OTHER TOP10 STORIES OF THE WEEK / 02.01.2025

Key Takeaways from Metaverse Fashion MAGAZINE:

??♂? Mark Zuckerberg remains optimistic about the future of the metaverse, calling 2025 "a pivotal year" for the initiative. He highlighted growing user engagement with Quest devices and Horizon Worlds, Meta's virtual social platform. “This year will see the fruition of several long-term projects that will make the metaverse more visually stunning and inspiring,” Zuckerberg stated during an investor call.

?? The Evolution of the Metaverse Vision by MetaMeta is doubling down on its metaverse ambitions with plans to invest between $60 billion and $65 billion in capital expenditures for 2025, much of it focused on AI infrastructure that supports AR/VR advancements. The company also retains a dominant 70% share of the VR/AR market, thanks to its Quest product line.

??♀? The Rise of Smart Fashion and AI-Driven ExperiencesOne of the fastest-growing sectors within the metaverse is digital fashion. Leading brands and designers are creating virtual collections, NFTs, and interactive experiences that merge blockchain, AI, and 3D design. Platforms like the Metaverse Fashion Council are already driving engagement through initiatives such as Talent Score, play-to-earn ecosystems, and metaverse-native loyalty programs.Zuckerberg highlighted that AI will play a crucial role in making the metaverse more intuitive and immersive. From hyper-personalized avatars to real-time translations in virtual worlds, AI will enhance user interactions and engagement, making the metaverse more practical for work, socializing, and commerce.

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HOW WILL LUXURY USE AI IN 2025?

Key Takeaways from Jing Daily:

?? HUGO BOSS launches AI-powered product content Hugo Boss is stepping up its digital strategy by integrating AI-powered product content across its global e-commerce platforms. To mark the launch, the brand has released an AI-generated video showcasing a model dressed in Hugo Boss pieces, offering a glimpse into how the tech will transform product presentation and enhance storytelling. The initiative is part of Hugo Boss’ broader push toward digitalization. The company aims to develop over 90% of its products digitally by 2025, a target it is steadily approaching with 65% already created through digital processes as of 2023. Hugo Boss’ milestone investment in AI comes as brands increasingly turn to personalized and dynamic content to elevate the online retail experience.

?? Burberry reimagines archives using AI tech As part of its turnaround strategy, Burberry is harnessing AI to breathe new life into its archives, marrying heritage with cutting-edge innovation to connect with a modern consumer base. Last week, the label shared a 1980 archive image by Lord Lichfield, originally captured in Eastbourne, England, on Instagram, brought to life using AI-powered animation. Featuring a couple sporting a classic Burberry trench, the still image was transformed into a piece of moving art. Luxury players are tapping into the growing trend of using AI to reimagine archival pieces for advertising. Last year, Lanvin updated a number of archival drawings to promote its Lanvin Sport line, giving once-obsolete creations fresh relevance. Will 2025 see more brands riding the wave?

?? AMOREPACIFIC debuts AI-powered makeup application At Las Vegas’ Consumer Electronics Show (CES) earlier this month, Korean beauty label Amorepacific snagged the CES 2025 Innovation Award in the AI category for its new generative AI-powered makeup application, ‘Wanna-Beauty AI,’ marking the sixth consecutive year the beauty giant has been recognized at CES. Developed in collaboration with the Korea Advanced Institute of Science & Technology (KAIST), ‘Wanna-Beauty AI’ is a voice-activated chatbot that analyzes user photos for skin tone, facial features, and proportions to offer hyper-personalized makeup recommendations and virtual try-ons, all powered by generative AI. The patented technology blends Amorepacific’s image diagnosis expertise with cutting-edge AI image generation, allowing users to virtually try on someone else’s makeup on their faces through a voice consultation interface. As consumer demand for bespoke beauty services and smarter solutions grows, developments like Amorepacific’s are at the forefront of meeting these needs. McKinsey’s report, “How Beauty Players Can Scale Gen AI in 2025,” suggests that incorporating AI into strategic initiatives could increase conversion rates by up to 40%.

SHOULD BRANDS ADVERTISE OM CHINA'S AI SELFIE APPS?

Key Takeaways from Jing Daily :

China’s AI innovation is trending. And selfie apps are a consumer generation-bridging craze.

China’s obsession with AI-powered selfie apps is not just a cross-generational vanity trend — it’s a lucrative opportunity for brands looking to tap into the digital-first consumer mindset.

With AI-driven photo editing applications like Miaoya and 45ai having caused server overloads in the past due to massive demand, and Meitu's market capitalization soaring to $19.1 billion, as of January 2025, the trend shows no signs of slowing.

“By the end of 2023, Meitu hit 250 million users, a massive audience of fashion-forward individuals, influencers, and content creators who are naturally inclined to share,” says Tanya Van Gastel, founder of the Multiverse AI, an AI photography app who has worked with Google, Amazon and others.

But what does this digital fixation reveal about Chinese consumers, and should brands be leveraging this growing space?

AI selfie craze

AI-enhanced beauty apps have long been a staple of China’s digital landscape, with platforms like Meitu leading the charge. Meitu, a social networking and image processing giant, has revolutionized how users interact with digital self-expression.

The company’s popular apps, Meitu Xiuxiu and Meiyan Camera, allow users to refine their selfies with cutting-edge AI filters, often aligning with the latest beauty trends.

More recently, Miaoya, a portrait-generation app, was in such overwhelming demand that its servers were pushed to their limits. Similarly, Remini, an AI-powered enhancement app, surpassed Douyin (China’s TikTok) in free iOS app downloads in May last year, logging over 1.7 million downloads. These apps are more than mere tools for vanity — they are shaping new standards of digital identity.

Why luxury brands should pay attention

Luxury brands are increasingly recognizing the potential of AI beauty apps as a gateway to Chinese consumers. Meitu has already integrated e-commerce into its platform, enabling users to digitally try on and purchase branded beauty products.

High-end fashion and cosmetics companies are leveraging this feature to introduce new lipstick shades, sunglasses, and skincare lines, seamlessly blending social commerce with digital beauty trends.

Van Gastel adds, “The beauty and fashion industries thrive on visual storytelling, and AI-powered selfie apps offer brands a direct line into highly engaged audiences.”

In an interview with Jing Daily, fashion consultant Emily Yao said her first encounter of the Louis Vuitton x Murakami collaboration was through Meitu, underscoring the app’s role as a brand campaign discovery platform.

Beyond advertisements, KOLs (key opinion leaders) and beauty bloggers are instrumental in driving sales within these platforms, curating online shops and earning commissions through MeituBeauty’s influencer-driven ecosystem.

Managing Director at luxury advertising agency Leap (Loveurope and Partners, Natalie Lennon says, “I would say that for brands with growth ambitions in the Chinese market, a digitally native audience and a strong grasp of social-first content then [selfie apps] can be an interesting investment, but should be rolled out as part of a wider, multi-channel social campaign.

Smaller brands or those with leaner digital marketing budgets would do better to consider other channels with greater scope for story-telling, which can better build long-term brand sentiment and loyalty.”

Cultural significance

The current “porcelain figure” selfie trend, reminiscent of the global “glass skin” aesthetic, exemplifies the evolving beauty ideals in China. Inspired by high-fashion moments like Pat McGrath’s runway looks for Maison Margiela, Chinese consumers are embracing hyper-refined, AI-enhanced imagery as an aspirational standard.

This ties into the broader movement toward digital identities, where online personas are curated to perfection. The desire for flawless, AI-enhanced imagery speaks volumes about the values of Chinese consumers — hyper-curation, tech-savviness, and a preference for interactive brand experiences.

What’s next?

At CES 2025, South Korean beauty conglomerate Amorepacific won the AI Innovation Award for its generative AI-powered makeup tool, Wanna-Beauty AI, highlighting the future of AI in beauty and commerce. As generative AI continues to shape consumer expectations, brands that fail to integrate these digital-first experiences risk losing relevance.

Luxury brands should take cues from China’s digital ecosystem — embedding AI beauty filters into campaigns, collaborating with KOLs within selfie apps, and leveraging interactive try-on technology. By doing so, they can tap into China’s lucrative digital beauty economy and align with the evolving expectations of tech-empowered consumers.

“The brands that embrace AI-powered beauty and content creation tools will be the ones shaping the next wave of digital engagement,” says Van Gastel.

With China’s AI beauty boom showing no signs of slowing, the question isn’t whether brands should engage, but how quickly they can adapt to this rapidly evolving space.

LVMH SHARES FALL 5% AS MODEST RESULTS SPARK DOUBTS ABOUT OLD FASHION SYSTEM'S VALUE PROPOSITION“

LVMH’s FY24 results, while slightly ahead on sales, disappointed the market due to elevated expectations following multiple stronger beats from peers,” noted UBS analysts in a report released Wednesday.

The lukewarm response was reflected in the stock market, with LVMH shares dropping 5% in Paris trading. Gucci owner Kering saw a similar decline, while Hermès and Burberry shares remained flat. Richemont, however, bucked the trend, rising around 2% in Swiss trading.

The luxury sector has been a rollercoaster in recent years, and 2024 proved no exception. LVMH, the global powerhouse behind iconic brands like Louis Vuitton and Dior, reported a modest 1% organic sales increase for the year, reaching €84.68 billion ($88.27 billion). While this figure slightly surpassed analyst expectations of €84.36 billion, it fell short of the optimism that had been building in the luxury market.

The underwhelming results came on the heels of stronger performances from rivals, which had fueled hopes of a broader industry recovery. British heritage brand Burberry and Richemont, the parent company of Cartier, both delivered better-than-expected results, with Richemont even posting record quarterly sales. These successes had led investors to believe that the luxury sector was finally turning a corner after a challenging period marked by slowing demand post-pandemic and a pullback in spending by Chinese consumers, who have been grappling with a real estate downturn.

The luxury sector’s post-Covid boom has been losing steam, and LVMH’s tepid growth highlights the challenges even industry leaders face in navigating shifting consumer behavior and economic headwinds. While the company remains a dominant force in the global luxury market, its 2024 performance serves as a reminder that the road to recovery may be slower and more uneven than anticipated.

For now, all eyes are on whether LVMH can reignite growth in the coming year—and whether the luxury sector’s recent glimmers of hope will translate into sustained momentum.

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CONDE NAST CELEBRATES MIDDLE EAST EXPANSION

Key Takeaways from WWD :

Vogue Arabia and GQ Middle East join the company's directly owned and operated portfolio.

In a strategic move to strengthen its presence in the fast-growing Middle East market, Condé Nast has transitioned four of its best-known brands from licensing agreements to direct in-house operations.

“Our iconic titles Vogue, GQ, Condé Nast Traveler and Architectural Digest have long been a part of the cultural fabric of this region, and today, we’re thrilled to be directly leading them and expanding their reach,” said Middle East managing director Thomas Khoury y during an event Thursday in Dubai to mark the occasion. Vogue Arabia has been published under license since 2016 and GQ Middle East since 2018.

Anna Wintour, chief content officer and global editorial director of Condé Nast, addressing an audience of luxury brand leaders and key partners said, “Now we want to help them grow with the full force of our global networks behind them, in a region with an extraordinary history and an unbelievable rate of acceleration toward the future.” She said this was her first visit to Dubai.

Khoury explained that the decision to transition the business to direct management gives them more control over brand positioning. “When you’re operating with a licensee or distributor, they are more commercially driven, which is great, but we need to focus more on the brand, on journalism, on the cultural side of the business,” Khoury said.

Condé Nast is also addressing the challenge of finding native Arabic-speaking editorial talent. Khoury acknowledged that this has been an “elephant in the room,” but said the company is working to collaborate with academic institutions to elevate journalism standards in the region. “It’s very important to be contextually relevant,” Khoury said. “We have plans to work on developing that side of the fence when it comes to the fashion industry specifically.”