Market Outlook

Phygital will become a crucial component for any fashion brand

NFT Trading Volume

The NFT market witnessed a $24.7 billion organic trading volume in 2022.* And according to Deloitte, Metaverse Fashion, as a sub-sector of the NFT market, is expected to grow to $55 billion by 2030, with 1/3 of global businesses ready to introduce products and services ready for the Metaverse.**

The Metaverse Narrative

McKinsey also reported that fashion brands focusing on metaverse innovation and commercialization could generate over 5% of their total revenue from the virtual world in the next 2-5 years. In 2021, global spending on virtual goods reached around $110 billion with about 30% of this on virtual fashion.***

New Technologies

There are clear opportunities and advantages for fashion brands and designers when it comes to adopting Web3 technologies. By combining blockchain technologies with advancing VR/AR equipment, it can increase transparency, traceability, customer engagement & loyalty, as well as sustainability. As consumer behavior shifts, the addition of a phygital element can also help brands reach out to younger generations of consumers.

Evolution Of Shopping

The fashion industry is expected to undergo large-scale structural transformations due to the bleak future of physical retail, growing environmental concerns, the growth of digital identities, and the greater demand for enhanced customer experiences.

We predict that this will ultimately lead to phygital products becoming a new standard for retail shopping experiences.

Source: *DappRadar, **Deloitte, ***McKinsey