How did the need for Web 3.0 arise? This is important to consider, as it helps understand the opportunities that are available in Web 3.0.

The current age of the internet, referred to as Web 2.0, has fostered a culture of distrust due to the lack of transparency and data security, particularly concerning user-generated content. Due to the centralized nature in which the internet currently operates, social media companies such as Instagram, Facebook and YouTube have the freedom to ban users and restrict content; hence users have limited control over their online personas and digital assets. Therefore, barriers to earn revenue on user-generated content where users may lack control of their own content, is a major source of frustration. Furthermore, the current centralized aspect of the internet allows large corporate entities to profit using valuable user data. An example of an incident which led to the skepticism towards entities such as Facebook, is the data misuse scandal, in which, personal data of Facebook users was collected by a consulting firm Cambridge Analytica, for political targeting.

However, as the internet continues to evolve, Web 3.0 emerges, and may be understood as an ongoing iteration that operates on a decentralized online network, which offers users the ability to take ownership of their own data and other digital assets. An example of decentralized protocols, used by Web 3.0, are blockchains, which are leveraged for cryptocurrency transactions. The adoption of Web 3.0 grants users the opportunity to monetize their creations, while owning the process end-to-end, without requiring permission from big tech companies. Further, with the advancement of artificial intelligence, predictive analytics can be deployed on the user’s end to distinguish between legitimate and fraudulent actions, thus providing users with accurate information for decision-making.

The use of Web 3.0 technology together with the Metaverse, will enable companies to expand to a new domain in the internet environment, thus bringing about a multitude of revenue-generating opportunities.

The Metaverse is inherently a network of 3D worlds, that integrates virtual and physical spaces, regardless of geographical location. The applications of the Metaverse include digital assets, healthcare, online shopping, social media, and gaming to name a few. This opens a world of opportunities for creators to generate a new type of content in each of these domains. Facebook’s announcement of entering the Metaverse brought the concept of Metaverse to mainstream consciousness.

The ingredients for building certain Web 3.0 applications include the following: augmented reality, virtual reality, and holographic projections, highlighting an overlap with the Metaverse. It could be utilized in parallel with Web 3.0 using blockchain systems to operate within a network of computers. Therefore, Web 3.0 could serve its purpose of connecting the Metaverse, whilst adding the benefits of data security and democratization of the internet. Furthermore, the Metaverse and Web 3.0 could work harmoniously to present new opportunities for creators to monetize their virtual content.

With the emergence of the Metaverse, companies can not only provide their products and services to anyone in the world, but also enable consumers to experience the use of such products and services through the integration of physical and virtual reality. Such global expansion could be done at a lower cost, making the Metaverse an appealing concept to organizations. In particular, there is a plethora of opportunities for the apparel industry.

One such opportunity is virtual fashion, which is an application of the integration of apparel and the Metaverse. A study by Morgan Stanley indicates that virtual fashion could be a $50 billion industry by 2030. This is primarily due to large apparel brands partaking in the sale of Non-Fungible Tokens (NFTs) and the rising popularity of events such as Metaverse Fashion Week. While large luxury fashion brands such as Gucci and Dolce & Gabbana have launched their own virtual clothing lines on the Metaverse, Ralph Lauren has already sold 100k units from their collection of wearables. Due to these reasons, the Metaverse is viewed as a lucrative market for traditional apparel brands. For designers, it unlocks creative freedom in the digital realm that may produce an entirely new generation of creators. Experimentation through the interaction of virtual fashion design and physical manufacturing accentuates the creative potential of designers.

Further, companies can use innovative ways of advertising, being consumer-centric in their approach. Whilst traditional digital marketing has been in the form of targeted marketing, the Metaverse allows to focus more on the consumer experience. Companies such as Coca Cola have used this consumer-centric approach for auctions, which contained several NFTs, including a themed bubble jacket that the winning bidder could wear in the virtual world, Decentraland. This is a powerful example of creating a rich consumer experience. In the apparel industry, this consumer-centric approach, which uses the apparel in real time, would create greater consumer satisfaction, as opposed to being bombarded with targeted adverts and promotions.

Accessing the Metaverse is done through virtual reality interfaces. To enhance immersion and therefore, adoption of the Metaverse, hardware development focusing on refining virtual reality headset capabilities by integrating apparel with sensors and haptic technology continues to be a key driver. Adoption will continue to rise due to the production of cheaper virtual reality headsets. OVR Technology is an example of a company that has pushed the boundaries of immersive experience in the virtual world by developing scent technology. Their INHALE system utilizes an olfactory headset, which offers wellness experiences that promote relaxation and mental fitness, through scent ware cartridges to match the state of mind. Further, the data collection capabilities of VR headsets allow companies to tailor-make their apparel products by better understanding consumer interaction. VR-powered testing through body language recordings can be deployed to analyze consumer behavior and gain better insights for product development.

This article considered the issues with the current technology, Web 2.0, and the emergence of Web 3.0 along with the Metaverse. There is significant research to show how several giants in the apparel industry have already begun to try out this concept. There is prediction of a growing demand for the Metaverse. While it is still too early to know for sure if this would be a successful concept, the growing interest shown by prominent players in the apparel industry seems to show that the Metaverse could be here to stay!