Fashion Tech Series: Marketing Innovations

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Fashion Tech Series

MARKETING INNOVATIONS

INTRO

ABOUT THIS SERIES Metaverse, NFTs, machine learning, blockchain…

What does it all mean? Change is happening fast. Not only are business realities in constant flux, but technological innovation is moving at an even more rapid pace. The time for digital transformation isn't the end of the decade—it is now.

MMGNET has teamed up with the global forecasting agency Fashion Snoops to present this multi-part series that breaks down the latest and most relevant technologies and tells you exactly how they can be applied to the key areas of the fashion vertical: (1) Sourcing + Supply Chain, (2) Design, (3) Retail, and (4) Marketing. In each report, we demystify the latest technological developments shaping the year ahead, from artificial intelligence to Web3; define opportunities companies should consider; and highlight specific success stories from those already forging a new path forward. In addition, readers can find various resource lists outlining potential vendors, partners, and solutions providers to have on their radar.

The preservation of the fashion industry is a product of interconnected functions, systems, individuals, and organizations that are all moving in different directions and at different speeds. At the most basic level, digital transformation can open up the parts of the whole to communicate faster and more fully, and even the smallest updates and tweaks internally can lead to profound benefits on the consumer end. Collectively, these changes can lay the groundwork for us all to step into the future.

SUPPLY CHAIN

TRANSFORMATION

NEW AGE OF DESIGN

THE EVOLUTION OF RETAIL

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MARKETING INNOVATIONS

INDEX

Marketing Innovations

The marketing sector is the ultimate technology playground. An inclusive metaverse, along with developments in VR and AR, opens up completely new avenues for advertising, brand immersion, and audience reach. As NFTs mature beyond crypto art, more viable use cases for the technology emerge as cornerstones of community-building and loyalty programs. Content remains core to marketing, and innovative creator tools and 3D video technologies have the potential to fuel assets and experiences that break through the clutter.

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WEB3 & NFTS Harnessing Web3 technologies to build loyal communities

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3

The Spatial Web Augmented reality opens up new customer engagement points

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The Metaverse Expanding brand reach through 360° digital immersion

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5

User-Generated Content Tools Innovations empowering customers to become content creators

Simulated Reality 3D video technologies elevate traditional media

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Marketing Innovations

Web3 & NFTs Harnessing Web3 technologies to build loyal communities

In the past few years, much hype and excitement has surrounded the non-fungible token (NFT). Even though many of the world’s biggest celebrities and brands have endorsed their potential to redefine business and culture, for most average people, the meaning and value of NFTs is still shrouded in mystery and skepticism. While early NFT activity mainly focused on collecting digital goods for the sake of investment or bragging rights, more practical, everyday use cases for NFTs to deliver real-world value and strengthen community are emerging.

How do NFTs work? Non-fungible tokens refer to unique digital assets that are powered by blockchain, which is the technology that underpins Web3—the vision of a decentralized internet owned by its users. Though they are both supported by blockchain, NFTs differ from cryptocurrencies in that each NFT is one-of-a-kind, while cryptocurrencies like Bitcoin are identical—or fungible.

NFTs can be represented by media like images, videos, or audio, and even be paired with physical products and interactions. One of the main benefits of NFTs is that they facilitate proof of authenticity and ownership, and the blockchain structure behind it provides an easy way for customers and brands to track activities by generating a nearly immutable digital footprint.

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Marketing Innovations

Web3 & NFTs

Innovations + Applications

Example Looking to advance their

Example

already popular Rewards

Outdoor brand Early

program, Starbucks has

Majority has launched a

harnessed Web3

membership program that

technologies to gamify and

uses physical,

deepen the loyalty

NFT-enabled badges that

experience. The enhanced

can be scanned to activate

UNLOCKING A FULLER EXPERIENCE

‘Odyssey’ program will

While purely digital NFT applications have struggled to gain traction, brands have seen greater success when tying the technology to physical touchpoints. For real-world collectibles, like sneakers and luxury goods, NFTs have value in certifying authenticity and ownership.

However, for other categories, NFTs have the potential to go beyond just an image asset to address deeper consumer needs and unlock experiences that keep the brand top-of-mind.

limited-edition NFT

FOSTERING COMMUNITY ENGAGEMENT

allow members to purchase

Another value-add of digital collectibles—whether they are paired with physical goods or are standalone tokens—is the ability to extend exclusive benefits to owners. In a new twist on the subscription model, startups in the Web3 space are building a community of customers by issuing NFTs and tokens that grant members perks like early access to goods, special events, and the opportunity to co-create product.

‘stamps’ and also win them through branded games and activities. Customers can then trade in the stamps, which are worth different points, to access unique benefits and experiences.

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special privileges, such as exclusive products, discount pricing, and even a voice in product development. As the age of the badge increases, owners gain more rewards and even resell their membership.

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Marketing Innovations

POINTS TO KEEP IN MIND

Web3 & NFTs

Resources

Aura Blockchain Consortium Organization formed by LVMH, Prada Group, and Cartier to wield blockchain technology in order to deliver traceability to luxury product and improve

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experiences of buying, owning, and selling product

In Summer 2022, in an event now referred to as the "Crypto Crash,” a number of cryptocurrencies

Fanadise

and NFTs dramatically dropped in value, and NFT

Exclusive content and NFT platform created for internet influencers and brands to

trading finally declined since its sharp rise

engage their digital communities with new experiences and services

beginning in 2020. Despite these uncertainties, NFT creators are future-proofing their projects by

RTFKT

building in real-world value beyond hype-driven

Company recently acquired by Nike that specializes in NFTs and blockchain

investment. Capital also continues to flow in for

authentication to create collectible, digital products for brands

crypto and NFT companies, including digital asset

Sweet

trading platform FalconX, which was valued at $8

Experience-driven NFT platform connecting dedicated fans to brands through

billion during a recent funding round.

digital collectibles

Smart Token Labs Web3 startup aiming to make tokens a primary means of ownership, identity, and interaction and to create infrastructure to store and collect NFTs

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One of the biggest setbacks for NFTs is that minting digital collectibles on the blockchain is considered to be an energy-intensive process that

Socios

many feel is an unnecessary waste of resources.

Gives holders of fan tokens access to games, trivia, check-ins, and more to boost

However, the main blockchain platform Ethereum

engagement with the sports teams that users love

finally transitioned to a proof-of-stake model that is expected to use 99% less energy.

TUNL Enables brands to create NFTs, distribute them to shoppers, and offer special perks and rewards for NFT holders

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Marketing Innovations

The Metaverse Expanding brand reach through 360° digital immersion

Definitions of the metaverse vary widely, but at its core is the idea of shared presence between remote individuals in a digitally based environment. The environment can be a completely virtual 3D space that is accessed through a VR headset, game console, or even web browser. It can be AR avatars projected in real space that can communicate with one another or interact with physical forms. At its most basic, some even qualify chat rooms as the metaverse. The version of the metaverse that developers are most concerned with is the all-virtual 3D kind, where users, brands, retailers, and other entities can establish some kind of digital presence (e.g. avatar, product, storefront) and function in ways similar to the physical world.

While the metaverse concept presents many opportunities for design and retail, its most immediate value is as a marketing tool to drive brand awareness and potentially connect to younger audiences.

The 360° nature of the metaverse opens up countless ways for brands to make an impression, and its expanding array of interactive tools can lead to unparalleled levels of engagement.

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Marketing Innovations

The Metaverse

Innovations + Applications

Example Roblox has provided an

Example

entry point to the

Sexual wellness business

metaverse for many

Lovehoney's pop-up on

brands. In response, the

Decentraland is a standout

popular social gaming

in branded metaverse

platform is launching an

experiences because it

official advertising

CREATING A SAFE SPACE

program. At the center is

GAMIFIED EXPERIENCES Early visions of the metaverse can be found in The Sims and Second Life, and the gaming world still serves as the key framework for the technology. Not only do open-world, multiplayer games like Fortnite and Animal Crossing set the template for highly engaging metaverse experiences, they also provide the most lucrative new real estate for brand and product placements.

an immersive ad format that provides ‘portals’ into

Aside from gaming, free and open social VR platforms like VRChat and NeosVR are among the most active areas of the metaverse.

These platforms have amassed a dedicated following by emphasizing inclusivity, empowering creativity, and striving to create a safe space for diverse needs and interests—all basic principles that brands should keep in mind when developing their metaverse strategy.

360° branded worlds. Ads will only be accessible to users over 13, which happens to be a fast-growing segment among the platform’s 50-million-plus daily active users.

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takes advantage of the unique value proposition of the technology: accessibility and anonymity. Taking place over four floors, the virtual installation provided a safe, comfortable space for users to browse sex toys, get sex and intimacy advice from experts, and view erotic art.

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Marketing Innovations

POINTS TO KEEP IN MIND

The Metaverse

Resources

Decentraland

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Brands still have a steep climb to reach Gen Z in the

A decentralized (blockchain-backed) metaverse platform that many brands have

metaverse: A recent survey found that 85% of Gen Z

settled on; virtual ‘real estate’ must be purchased but users can visit for free

feels indifferent about brand experiences in the metaverse. However, most who participate do so through gaming.

NeosVR An up-and-coming VR social network that also has gaming capabilities ●

There is a growing customer fatigue around elaborate digital experiences. Rather than building

Nowhere

from scratch, brands should consider partnering with

3D platform that emphasizes inclusivity; equipped with spatial audio, it aims to be

established properties that already have an built-in

the metaverse home for entertainment

audience and a familiar structure.

Roblox Community-created gaming platform that has become a popular destination for

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The metaverse can exist independent of concepts like NFTs and cryptocurrency—in fact, it may be

immersive brand experiences

more effective to keep metaverse engagement simple until an audience and market potential is

Spatial

established.

Positioned as the metaverse for cultural events, this web-based platform makes it easy for anyone to create 3D experiences ●

VRChat

In the spirit of creating an accessible metaverse, it is important to make 3D experiences scalable to a

One of the most active VR social networks that gives the power of creation to its

variety of devices and 2D formats, like web.

community

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Marketing Innovations

The Spatial Web Augmented reality opens up new customer engagement points

The advancement of 5G networks and IoT technologies (i.e. the ability to equip any device with connectivity) is paving the way for the next evolution of the internet: the spatial web. This invisible cloud of connectivity—along with advancements in 3D technologies and interfaces like voice and gesture control—are allowing the user experience to happen in open space, rather than restricted to a computer or phone screen. The expanded canvas of the spatial web opens up endless new ways for brands to engage with customers, with augmented reality (AR) leading as a particularly useful and versatile tool for marketing.

Now that we’ve seen AR in action for over a decade, top use cases for the holographic technology are taking shape. It’s not enough for an AR experience to just entertain or to animate an ad, it has to fill a deeper function for the customer, such as the ability acquire something exclusive, get personalized service, or interact with products in a more active way.

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Marketing Innovations

The Spatial Web

Innovations + Applications Example Nreal is launching an ad

Example

platform for their AR

Niantic—best known for

glasses that is similar to

‘Pokémon GO’—recently

YouTube’s in-video format.

launched Lightship VPS

Brands will be able to

(visual positioning system),

create immersive AR ads

which will allow AR

that will be embedded into

experiences to occur in

programming on the TV

enabled locations around

ADVERTISING IN OPEN SPACE

the globe with centimeter

The rise of internet-enabled objects is resulting in a global network of interactivity. This has the potential to open up our streets, skies, buildings, parks, oceans, and more to digital ads and experiences that exist ‘in the air’—viewable only through smart devices. This will allow brands to engage with the environment in new and interesting ways, as well as deliver fresh content at the touch of a button.

entire cities can become a

NEW CUSTOMER INTERFACES

precision. This means that

As the portals for spatial advertising expand, they also offer new ways for users to interact with the creative, which can lead to fun and dynamic experiences. Notably, voice control is widely available, and more devices and apps are being trained to recognize and respond to hand movements and larger gestures—all of which can also allow brand experiences to become more accessible.

playground for persistent digital ads or brand messaging that appears when users put on special glasses or even just pull up their phone cameras.

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app that comes with their glasses. Furthermore, users will be able to interact with the ad (e.g. skip, click-through, explore) using gesture control.

Brands from L'Oreal to Gucci have already signed up to run ads on the service.

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Marketing Innovations

POINTS TO KEEP IN MIND

The Spatial Web

Resources

Aircards Specialists in the development of web-based AR and VR experiences

Nreal ●

Maker of AR glasses and an accompanying streaming platform that offers AR

Less hardware-dependent than virtual reality experiences, AR is emerging as the more viable

advertising opportunities

and scalable solution for immersive brand engagement.

Overly Allows users to easily create AR content without code ●

QReal

Studies show that customers are 50% more likely to pay attention to a brand that uses augmented

Creates ultra-realistic 3D content optimized for augmented reality

reality, with a 6% higher rate of purchase intent.

Snap Inc. Recently introduced a Custom Landmarker feature that lets brands build large-scale AR experiences in specific locations

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Top-performing AR campaigns have average dwell times of over 85 seconds and interaction

Ultraleap

rates of up to 20%—significantly higher than other

Developer of hand-tracking technologies that can bring dynamic gesture

media.

control to a range of interactive experiences

VNTANA 3D and AR platform that recently partnered with Meta to bring interactive 3D capabilities to ads on Facebook and Instagram

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Marketing Innovations

Simulated Reality 3D video technologies elevate traditional media

Accustomed to the surreal and fantastical aspects of digital, customers are coming to expect transportive experiences in real life, too.

Simulated reality (SR) goes one step further than AR and VR, using a combination of display technologies and inventive filming techniques to create the illusion of real, 3D action without the need for smartphones or special eyewear (i.e. visible to the “the naked eye”).

These reality-bending moments are popping up in digital out-of-home (DOOH) ads; and as 3D displays advance, we can expect to see the technology trickle down to consumer devices and influence media across the board.

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Marketing Innovations

Simulated Reality

Innovations + Applications

Example The Cross Shinjuku Vision

Example

billboard space in Japan

Brooklyn-based Looking

has become a must-watch

Glass Factory is a leader

hub for the latest in 3D

in holographic innovations,

advertising, with spots from

offering both the software

Samsung Galaxy to

pipeline to create 3D

‘Pokémon GO’ capturing

SURREAL ANAMORPHIC BILLBOARDS

THE 3D DISPLAY REVOLUTION

the attention of an average of 190k passersby daily.

Standalone displays that already have 3D capabilities built into the device are getting more numerous and sophisticated and pose exciting opportunities for the future of experiential marketing. Unlike the technologies being used for billboards, these devices can convey 3D to a wider range of viewpoints. In addition, many are being equipped with spatial technologies that allow users to interact with 3D objects through gesture control.

Due to the anamorphic As digital marketing grows more expensive and uncertain, companies are re-investing in traditional media like out-of-home ads. Billboards, in particular, are getting a new life through a 3D upgrade. A combination of strategically arranged LED screens and anamorphic filming techniques creates the illusion of 3D when the billboard is viewed from a certain angle.

Applications of this show-stopping technique are endless, from trade show installations to storefronts.

filming approach, videos of the billboards perform particularly well online, where they can be captured from an angle that optimizes the 3D effect.

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content and a wide range of devices to display it. They recently introduced their largest 8K display, at 65 inches, which allows the 3D field to be easily viewable by up to 50 people. They marked its launch with a viewing of the first-ever holographic movie in competition at the Tribeca Film Festival.

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Marketing Innovations

POINTS TO KEEP IN MIND

Simulated Reality

Resources

Amplify

Creative agency specializing in experiential marketing that utilizes the latest 3D media technologies ●

The development and placement of 3D billboards is still costly at the moment, but brands that are

d'strict

tapping into the tech are seeing their campaigns

A design company known for creating immersive spatial experiences using XR

go viral. Outlets are also quickly expanding, which

innovations

should gradually drive costs down.

Dimenco Maker of award-winning simulated reality displays, the latest of which adjusts

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automatically to the user’s line of sight and responds to gesture control

Studies show that 3D billboards achieve greater attention and ad recall than traditional 2D billboards.

Looking Glass Factory Innovator in holographic software and displays, including the largest “naked eye” 3D-enabled 8K screen

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While the all-in-one package of 3D displays holds great appeal, it is restricted by cost and the actual size of the screen, and so its most viable

Ocean Outdoor

applications run along the lines of shelter ads and

Leader in technology-driven digital out-of-home (DOOH) advertising, including

interactive in-store screens.

their DeepScreen 3D platform

OUTFRONT Media Popular media company that offers a 3D advertising platform called X-Scape that includes several high-profile DOOH placements (e.g. Times Square) and a content creation pipeline

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Marketing Innovations

User-Generated Content Tools Innovations empowering customers to become content creators

The next big influencer is your everyday customer! As consumers grow more skeptical of sponsored ads and tire of the picture-perfect sameness of traditional influencers, user-generated content (UGC) is emerging as a primary component of the marketing toolkit. Driven by TikTok, consumers are gravitating towards content creators who have jobs and lives outside of professional influencing or are simply everyday customers, like themselves.

While user-generated content should be authentic, honest, and candid, marketers can call on a number of technologies and tools to empower and make it easy for consumers to co-create content with brands. There is a huge opportunity to carve out these channels in a number of touchpoints, such as physical stores, the brand website, online marketplaces, and social platforms. As an added bonus, these active engagement points can give businesses invaluable insight into consumer sentiment.

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Marketing Innovations

User-Generated Content Tools

Innovations + Applications

Example E-commerce host Shopify

Example

has launched Shopify

Nike’s newly opened Nike

Collabs to connect content

Style concept store is built

creators with brands that

for customer-created

reflect their interests and

content. The store includes

expertise. Once creators

a studio with

EXPAND OUTLETS FOR CONTENT CREATION Strict parameters around sponsored content take the excitement out of brand partnerships. Allow your customers’ organic creativity to shine through. Incentivize customer content creation through special hashtags, filters, and dedicated campaigns that invite customers to be featured on official brand social media pages. Take content creation offline by opening up opportunities for customers to make content in stores or at special events.

partner with brands, they

interchangeable

NEW INFLUENCER INFRASTRUCTURE

backgrounds where customers and local creators can produce

As the creator economy has boomed, choosing the right influencers and managing relationships with numerous creators has become a difficult task. As more everyday customers participate in creating content for brands they love, new platforms are facilitating these many brand partnerships with ease.

content for social media.

The store will provide additional brand immersion in ‘Nike By You’ workshops, where customers can personalize their own Nike products.

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can curate a selection of products to share on their platforms; and when their audience uses their links to buy products, the creators make a profit.

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Marketing Innovations

POINTS TO KEEP IN MIND

User-Generated Content Tools

Resources

Flip

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Customer platform allowing users to create video reviews and monetize

85% of consumers would rather see content generated by actual customers, rather than

content by trying and promoting new products

content produced directly from the brand they are shopping from

JoinBrands New platform helping brands source authentic user-generated content from their pool of more than 10,000 influencers ●

Traditional influencer strategies no longer suffice in today’s social media landscape. Brands must be

LTK

selective and thoughtful about what creators they

Social commerce app centered around creator reviews and try-on content to

partner with to get the best ROI. If your brand

drive more purchase confidence for customers and sales for brands

chooses the paid partnership route, be sure that your influencer is highly relevant to your product

Shopify Collabs

or service and, most of all, relatable to your

Connects brands with aligned creators through an influencer database,

customer.

influencer gifting features, discount codes and referral links, and a commission-distribution platform ●

Tiktok Creative Exchange

In addition to paid partnerships, encourage your customers to engage in content creation by

Matches brands with Tiktok creators based on specialization and niche to

spotlighting organic, customer-created content

produce native content promoting their product

on your social media pages. By doing this, your community can feel like a true part of your brand

Voxfeed

and its image.

Free software platform connecting brands directly with influencers and sponsors based on authentic interest and understanding of product

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Fashion Tech Series Explore the rest of the series

SUPPLY CHAIN TRANSFORMATION

NEW AGE OF DESIGN

From blockchain-backed sourcing

Deep dive into the new technologies

to logistics automation, discover

that are pushing the boundaries of

the innovations that are driving a

creativity, such as AI-aided design

more efficient and sustainable

and collaboration in extended

supply chain.

reality (XR) worlds.

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THE EVOLUTION OF RETAIL

Explore the innovations that are enabling businesses to meet customers where they are, whether it’s in store, hybrid environments, or digital worlds.