- Title: Crypto fashion: would you buy clothes that don’t exist?
- Date: 12th August 2021
- Summary: UNIDENTIFIED LOCATION (JULY, 2021) (REUTERS) (SOUNDBITE) (English) PAULA SELLO, AUROBOROS CO-FOUNDER, SAYING: "We wanted to digitise the pieces, not only just to replicate the physical fashion, but really to uplift and upgrade garments to a whole new aesthetic realm. We can wear fire, we can wear water, whatever we like in the digital. And with that comes a whole new visual language."
- Embargoed: 26th August 2021 09:42
- Keywords: Auroboros Decentreland MANA NFTs. NFT RTFKT Republic Realm crypto fashion cryptocurrency metaverse non-fungible token wearables
- Location: UNIDENTIFIED LOCATION / INTERNET / NEW HAMPSHIRE, UNITED STATES
- City: UNIDENTIFIED LOCATION / INTERNET / NEW HAMPSHIRE, UNITED STATES
- Country: Various
- Topics: Living/Lifestyle,Society/Social Issues
- Reuters ID: LVA00HEQ09765
- Aspect Ratio: 16:9
- Story Text:When the blockchain-based virtual world Decentraland said in June it would allow users to create digital clothing for their avatars, 23-year-old Hiroto Kai stayed up all night designing Japanese-inspired virtual kimonos to sell on the site.
Kai is a digital artist and Japan-enthusiast. His real name is Noah and he lives in New Hampshire. By selling the kimonos to Decentraland users for around $140 each, he said he made $15,000 to $20,000 in just three weeks - as much as what he'd earn in a year in his job at a music store. So he quit that job to become a full-time designer.
In virtual worlds like Decentraland, clothing for avatars - known as "wearables" - can be bought and sold on the blockchain in the form of a crypto asset called a non-fungible token (NFT).
NFTs exploded in popularity earlier this year, as speculators and crypto enthusiasts flocked to buy the new type of asset, which represents ownership of online-only items such as digital art, virtual trading cards, and land in online worlds.
People with avatars in Decentraland bought limited-edition NFTs of Kai's kimonos and other accessories using MANA, Decentraland's cryptocurrency, and can virtually "wear" them as they walk around the online world.
"It just took off," Kai said. "People wanted to be a warrior: they wanted to have a katana, they wanted to have a sword."
"It's walking art. That's what's so cool about it."
While the idea of spending real money on clothing that does not physically exist is baffling to many, the hype around virtual possessions is part of a wave of interest in the "metaverse" - online environments where people can congregate, walk around, meet friends, and play games.
The niche crypto assets have caught the attention of some of the world's biggest fashion companies, who are keen to associate themselves with the interests of a new generation of gamers.
LVMH-owned Louis Vuitton launched a free metaverse game in which players can collect NFTs, while Burberry said it would sell a character and Burberry-branded NFT accessories for the game Blankos Block Party, which is owned by Mythical Games.
Gucci sold an NFT artwork via auction at Christie's in June and has also previously sold clothing for avatars within the game Roblox. Dolce and Gabbana is due to sell an NFT collection in September.
While the overall size of the NFT wearables market is difficult to establish, in Decentraland alone wearable sales volume totalled $750,000 in the first half of 2021, up from $267,000 in the same period last year, according to NonFungible.com, a website which tracks the NFT market.
But proponents say it represents the future of retail.
Republic Realm, a $10 million virtual real estate investment vehicle, has built a shopping mall in Decentraland. Since opening in June, Republic Realm said visitor numbers have been in thousands. But when Reuters visited the mall, it was deserted.
Not all virtual fashion involves NFTs. The London-based start-up Auroboros designs digital garments which people can wear on social media and within games, as well as via augmented reality (AR).
Customers can send Auroboros an image of themselves and have the clothing digitally added, with prices starting from £60 but reaching above £1000.
Auroboros co-founders Paula Sello and Alissa Aulbekova said that digital fashion can be more environmentally-friendly, by offering an alternative to the fast fashion industry.
"We need to have the shift now in fashion. The industry simply cannot continue," said Sello.
"We wanted to digitise the pieces, not only just to replicate the physical fashion, but really to uplift and upgrade garments to a whole new aesthetic realm. We can wear fire, we can wear water, whatever we like in the digital. And with that comes a whole new visual language."
The virtual sneaker company RTFKT sells limited-edition NFTs representing sneakers which can be "worn" in some virtual worlds or on social media via an exclusive Snapchat filter.
"It really took off when COVID started and loads of people went more online," said Steven Vasilev, RTFKT's co-founder and CEO, who describes the sneakers as "virtual assets".
The company has seen $7 million in sales, with limited-edition sneakers selling for $1000-$5000, he said. While the majority of customers are in their 20s and 30s, some are as young as 15.
Republic Realm, RTFKT, and Auroboros all cited variations of the statistic that one in ten fast fashion purchases are bought for social media photos.
This likely comes from a 2018 Barclaycard survey which found 9% of British people admitted to buying clothes online to post photos on social media, then returning them.
Vasilev added that the global pandemic accelerated interest in the metaverse.
"When COVID came through, the NFT space really took off. We sort of pioneered the NFT-to-physical. So we sell basically an NFT item, which acts as a passport into experiences. We also pioneered the forging process. It's where you use your NFT to redeem a physical item," he said.
The NFT can also be used as a token to get a free physical version of the shoe, but one in 20 of RTFKT's customers do not redeem that token.
(Production: Matt Stock/Elizabeth Howcroft) - Copyright Holder: REUTERS
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