Fashion and the Web3 revolution

«Rather than Metaverse, I prefer to talk about Web3, which in the next 3 to 5 years will change a lot of our habits, from the use of digital wallets to the very concept of consumer», Stefano Rosso, board member of Otb group and ceo of the newco Bvx-Brave Virtual Xperience, a think tank designed to ferry the fashion hub founded by Renzo Rosso into the next economy, stated. The next economy is an area in which the group has already started being active with some Nfts released by Diesel and that will soon see the arrival of Maison Margiela’s. The entry of Aura Blockchain Consortium as a founding member, with exceptional partners such as Prada, Cartier and Lvmh, is a part of this vision.

Antoine Arnault has been critical of the Metaverse. For OTB, what potential do you see?

I prefer to talk about Web3, which is broader and has an impact that will change our habits and customs. Then in fashion I believe that Web3 processes such as the use of cryptocurrencies and NFTs exchange will also be increasingly linked to physical products with a disruptive impact because they are processes that, once adopted, can change the mindset of the user.

So let us talk about Web3. How much of fashion and luxury revenues will it be able to generate?

Estimates made to date by experts say that by 2025 the Metaverse will generate 10% of revenues in the luxury sector. The real revolution, however, will come in Web3 processes. Forms of payment, for example. In the next 3 to 5 years, we will see great use of cryptocurrencies, digital wallets and technologies related to physical products with a digital twin or blockchain. The revolution is in the process.

Can we say that not investing in Web3 is a risk? How do you see fashion and Italy in this regard?

It is important, it depends on the role a brand wants to have. We by definition are Only The Brave... It is natural for us to jump into this world where everything is yet to be discovered. The real key turning point is the technology that these tools put in the hands of users, who are no longer consumers because they are not just consuming but enjoying an experience. We are ready to write new chapters of this industry that enables different things. We are here and we believe in it.

You started with Diesel...

Our first drop was in March last year. It was four Nfts and three of them already had a phygital component. In the case of the sneaker there was a co-designer path together with our community who chose the colorways. Now we have many projects in the pipeline. The first one is a partnership with Public Pressure, an Nft marketplace that creates musical Nfts related to audio visual experiences, and Diesel will collaborate with them to release NFTs at the music level. We will also be launching other projects in the coming months that will continue to bring value to Nft projects.

Which of Otb’s other brands will be most active in Web3?

With Diesel we have created a road map that we continue to invest in. Then we will focus on Maison Margiela. The other brands will also develop a strong component in Web3 but still they are not as strong as Diesel and Margiela.

Is your Aura Consortium membership part of the Web3 strategy?

Aura is the first luxury brand consortium which brings together companies to use technology by combining their tech skills and blockchain. It was part of our digital transformation road map and being able to join a group of travel partners that are already developed in this sector was a winning bet. Today, our group is also integrated, and we are using Aura’s blockchain to write origin and authenticity certificates for our physical products. 

Is the idea of label-passport already a reality?

We started labeling our clothes, so far only leather goods, as Certified by Aura Blockchain Consortium. Through a smartphone you can see that it is an original item and on the brands’ websites you can check the origin of the product thanks to this instrument. This makes the item valuable. It is a revolution for luxury because in the past the possibility of managing and giving information without asking directly to store staff was not a thing. In this way we can better handle the second-hand market, whose information, up to this day, was lost at the moment of sale.

Speaking of second-hand, it is becoming a stronger and stronger market. Are you already actively working in it?

Yes, we have a project with Diesel launched a year ago and it was very well received. We would like to expand the initiative to luxury brands such as Margiela and Jil Sander.

Do you accept cryptocurrencies?

Not yet, because Italy is still a grey market. Bvx is an Italian company and thus we are trying to understand the strategies to achieve shortly the most congenial solution for the market. It is without a doubt an important project we are working on, but we are not ready to make any official announcement yet. There are more risks than advantages today, so we are still evaluating the possibilities.

What are the advantages?

They are linked to practicality and speed because users love being able to pay by clicking a single button through which they access a digital wallet. On the other hand, new customers have to be taken into consideration. In the crypto world, new millionaires are potentially new fans of our brands. It is definitely a very innovative world, but as is often the case, when there are very new things in the field, institutions are not quick to regulate and take in these new worlds. Therefore, we are stuck with the lack of regulation.

Many are focusing on gamers and gaming in general. Does it intercept new market categories?

I built a small company in the gaming world. It is called D-Cave and it was born as a gamer space, then it evolved to Web3. Everyone is a gamer in some way. There are about 3 billion gamers and 40% of them are between the ages of 20 and 35, an important target for our brands. In my opinion it is fundamental to have a touch point with the gaming world because it is another access point to our clients.

Are wearable technologies going to be the new frontier?

This world will only explode when physical reality is augmented by digital reality, so glasses such as Ray Ban in collaboration with Meta and the Google glasses are the real breakthrough, but these are just early prototypes. Until more advanced models are developed, there will not be this explosion. We are still at the beginning. (All rights reserved)