The digital transformation is no longer a distant concept for the fashion industry; it is an immediate reality that is reshaping consumer behavior, brand strategies, and the very nature of creative expression. This was the focus of an online session hosted by the Business of Fashion (BoF) on 18.11.2021, which explored the rapidly expanding opportunities in digital fashion and avatars. Industry leaders from Burberry and Jimmy Choo joined the discussion, sharing insights on how their brands are navigating this evolving landscape and embracing new possibilities offered by digital assets.
The event revolved around the rise of digital assets and their implications for the fashion industry. These assets encompass a range of categories, including virtual garments, customizable avatars, gaming-related digital items, and non-fungible tokens (NFTs). Research conducted by BoF underscored the growing consumer interest in these areas, revealing that half of the U.S. population is considering purchasing digital assets within the next twelve months. This trend is being driven by advancements in blockchain technology, the meteoric rise of gaming platforms, and the societal shifts catalyzed by the pandemic, which blurred the boundaries between the physical and virtual worlds.
Representatives from Burberry and Jimmy Choo offered vivid examples of how luxury brands are engaging with digital assets. Burberry’s collaboration with Mythical Games, for instance, led to the creation of „Sharky B,“ a digital NFT character featured in the game Blankos Block Party. The brand emphasized the importance of authenticity and creativity in its approach, going so far as to involve its physical design teams in the crafting of this virtual product. This ensured that Sharky B retained the exclusivity and attention to detail associated with Burberry’s legacy, while also allowing the brand to connect with gaming communities in a meaningful way.
Jimmy Choo, on the other hand, took a different route, partnering with artist Eric Haze to release a series of NFTs tied to a capsule collection. Their project included a charity auction of a unique digital-physical hybrid sneaker and a set of collectible “mystery boxes” featuring virtual designs. This initiative allowed Jimmy Choo to test the waters of digital engagement, attracting new, digitally savvy audiences while exploring how its brand identity could translate into the virtual space.
The session also examined the opportunities and challenges that digital assets present to the fashion industry. Gaming emerged as a particularly promising avenue for brands to engage with consumers. With billions of players worldwide, games provide an immersive environment where fashion brands can integrate their offerings, whether through skins, exclusive collaborations, or virtual runways. Additionally, NFTs and digital fashion enable brands to create and nurture communities, redefining the traditional notions of loyalty and membership. For instance, NFTs offer the potential to establish exclusive clubs or communities where membership confers both digital and real-world benefits. This blending of virtual and physical experiences is becoming increasingly significant as consumers spend more time in online spaces.
However, the journey is not without challenges. The rapid evolution of technologies like blockchain creates complexity in platform selection and strategy development. Brands must balance the allure of short-term experimentation with the need to build sustainable, long-term consumer relationships. As panelists noted, the volatility of NFTs and the speculative nature of the market require brands to be strategic in their approach, ensuring that their digital initiatives are grounded in their core values and resonate authentically with their audiences.
A recurring theme in the discussion was the importance of partnerships. Both Burberry and Jimmy Choo emphasized the value of collaborating with the right partners to navigate the complexities of the digital ecosystem. Burberry worked closely with Mythical Games to ensure its NFT character integrated seamlessly into the gaming environment, while Jimmy Choo partnered with a platform specializing in blockchain and digital collectibles to launch its NFTs. Such collaborations allow brands to tap into specialized expertise, ensuring they show up authentically and effectively in these new spaces.
Looking ahead, panelists shared their predictions for the future of digital assets in fashion. Gaming was identified as a particularly fertile ground for innovation and consumer engagement. The integration of play-to-earn models, where players can own and trade in-game assets as NFTs, offers a new layer of interactivity and value creation. At the same time, the panelists cautioned against rigid thinking and emphasized the need for brands to remain adaptable. The digital space is evolving rapidly, and those who can think creatively and redefine traditional notions of luxury behavior will be best positioned to succeed.
Another area of optimism was the potential for NFTs to build lasting connections between brands and consumers. NFTs offer an unparalleled opportunity to create a sense of exclusivity and authenticity, fostering deeper engagement and loyalty. For instance, owning a brand’s NFT could grant access to exclusive events, limited-edition products, or even virtual worlds where consumers can further engage with the brand’s story.
The fashion industry is uniquely positioned to thrive in the digital realm. With its emphasis on storytelling, creativity, and identity, the industry can leverage digital assets to craft compelling narratives and help consumers curate their digital identities. As consumers increasingly value self-expression in virtual environments, brands that invest in innovation, authenticity, and meaningful partnerships will lead the way into this exciting new frontier.
Sources
The Business of Fashion. “The Opportunity in Digital Fashion and Avatars | #BoFMasterclass,” November 18, 2021. Accessed January 5, 2025. https://www.youtube.com/watch?v=1IpRFzcYqkU.
BoF INSIGHTS. “The Opportunity in Digital Fashion and Avatars.” Accessed January 5, 2025. https://insights.businessoffashion.com/products/the-opportunity-in-digital-fashion-and-avatars.