Weekly news and stories covering everything from the Fashion System, Investment, and AI to WEB3 and Crypto that truly matter in Metaverse Fashion
SILICON VALLEY INVESTORS REJOICE AT FED'S INTEREST RATE CUT | [FINANCE]
Katie Roof for Bloomberg
👾 Wall Street rejoiced over this week’s interest rate cuts, but there’s another investor class that was just as enthusiastic: venture capitalists.
The tech correction of the last couple of years has left many startup investors longing for the Federal Reserve’s bygone zero interest rate policy, or ZIRP, which helped fuel the industry’s boom in 2021 at the height of the pandemic.
🗣 Today, the 50-basis point rate cut, the first decline in more than four years, is a “reason for optimism,” said Anna Barber, partner at M13. She expects that consumer and business spending will eventually go up. Barber also said the rate cut could encourage investors in VC firms, or limited partners, to be more optimistic about the asset class. “Capital will flow more freely at lower rates,” she said.
💵 Interest rates impact the economy in countless ways; one effect is that low rates encourage more consumer spending because there is little incentive to keep money in a savings account. Consumer-facing Silicon Valley startups had benefited from this phenomenon. Venture capital firms can also be buoyed because safer assets like Treasuries yield less, and startups can borrow more freely.
💭 Jeff Richards, managing partner at Notable Capital, is also hopeful about the rate cut. He sees more startup liquidity events on the horizon, including more tech public listings, which have been sparse since rates increased in 2022. “It should be positive for the IPO market,” he said, “Lower rates generally encourage capital allocators to seek more risk, and newly public companies bring risk.”
GROK'S IMAGE GENERATOR, BLACK FOREST LABS, IS RAISING $100M AT A $1B VALUATION, SAY SOURCES | [SINGULARITY]
Ingrid Lunden for TechCrunch
🤖 While OpenAI pursues yet another monster fundraise, it is not stealing all the oxygen in the room: AI startups building promising foundational models can still open doors, and checkbooks. Multiple sources tell us that Black Forest Labs — a startup that’s building generative AI image models and came out of stealth two months ago with $31 million in funding — is closing new funding. A $100 million round at a $1 billion valuation is the amount we are hearing. The deal may not be final and so could still be subject to change.
🦄 Black Forest is not just any AI startup: The company was co-founded by the engineers who built the technology behind Stability AI. And it has a big-name customer. Elon Musk’s X.ai is using Black Forest’s Flux.1 text-to-image model to power image generation in its Grok chatbot. That’s a service that set people chattering immediately after it was launched in part because of the audacious results people generated with it.“No filters” still appears to be a thing a month later. We created the image on the right earlier this week.
💰 It’s not completely clear yet who is investing in the Freiburg, Germany-based startup’s latest round. One source mentioned that Lightspeed — one of the more prolific investors in AI in Europe, backing Helsing, Mistral, Stability AI and others — might be involved. Lightspeed has not yet responded to a request for comment, and neither has Black Forest itself. (We will update the post if they do.)
💥 Rapid fundraising in the area of generative AI has become quite commonplace in the current market: Startups building these tools need the funding to buy compute, to hire talent, perhaps to settle IP licensing agreements, and for marketing and business development to compete against bigger and even more well-funded players. In the case of Black Forest Labs, there are more technology launches coming up soon. The company has already said it’s working on a state-of-the-art text-to-video tool, with an as-yet-unannounced debut date.
AMAZON FOLLOWS ROBLOX WITH LAUNCH OF IMMERSIVE ADVERTISING EXPERIENCE IN FORTNITE | [METAPHYSICS]
Alexis Beck for Metaverse Fashion MAGAZINE
🎮 Amazon Ads is launching a new interactive experience on Fortnite, providing brands with unique marketing opportunities and guaranteed promotion through Amazon-owned streaming platform Twitch.The project, titled The Glitch, is described as "an integrated galaxy of brand-customized, playable worlds" within Fortnite. It is being developed by Halo co-creator Alexander Seropian and his game studio, Look North World.
💥 In collaboration with Twitch and Amazon Ads, Look North World has tailored each virtual world to reflect the identity of individual brand sponsors. For example, in the Domino's-themed world, players can visit a fully modeled pizzeria and host pizza parties that restore their character's health.This new venture was announced at TwitchCon San Diego on Friday, October 20th, where the first brand collaborations—featuring Domino's and Peloton—were revealed.
🤝 To support the launch of The Glitch, Amazon Ads has partnered with popular Twitch streamers to ensure they play and live-stream the experience from day one. These streamers will continue to promote the game over time, even when new branded worlds are not introduced.The launch of The Glitch can be seen as Amazon’s response to Roblox, which recently integrated virtual advertisement billboards into its game. Brands like ELF and Walmart use these billboards to increase awareness among Gen Z players while directly promoting products within the game.
🤖 Earlier this month, Roblox also teamed up with Shopify, allowing players to purchase goods directly from brands and creators without leaving the game. This has transformed Roblox into a direct sales tool for brands entering the metaverse.Both Amazon and Roblox are tapping into the rapidly expanding gaming content market, which is currently valued at approximately $200 billion. The sector is expected to grow at a compound annual growth rate (CAGR) of 12-14% over the next few years.
LUXURY'S SOFT PATCH WILL BE SHORT |[FASHION SYSTEM]
Luca Solca for The Business of Fashion
💡 Luxury sales are going through a rough patch. It’s tempting to think that something is broken with the sector’s price-value equation. But I have seen slowdowns more than a few times over the past 25 years, and from where I sit, my thesis is that what we are currently seeing is primarily a macroeconomic issue, with luxury fundamentals largely intact. This is not to say that some players don’t have homework to do — even big fish like LVMH. Equally, this is not to say that in the past ten years luxury hasn’t changed, with a significantly stronger focus on the super rich and price hikes to match. Yet, in my opinion, luxury’s current woes are mostly coming from a global cyclical slowdown, exacerbated by structural difficulties in China.
💵 The efforts of central banks are producing the desired effect: cooling down consumer demand. This is obvious when we look at recent revenue growth performance across all consumer sectors, both discretionary and staples. Luxury is no exception. Western demand is moderating, and this is only partially offset by a rebound of Chinese luxury demand out of “zero-Covid,” given low consumer confidence triggered by a falling real estate market. And as usual, the slowdown is starting from the bottom of the social pyramid, with high-end consumers still in spending mode.
📈 The question is: what comes next? A continued slowdown or the start of a rebound? Should we extrapolate the current trend? Or is there a macroeconomic rebound in the making — prompted by central banks taking action to cut rates and a change of leadership in Washington? The US Federal Reserve has just cut interest rates by 50 basis points — this seems like a good start. Our current forecast suggests luxury’s soft patch will be short: 2025 will bring improving demand and mid-single digit sales growth in a base-case scenario. This forecast is mainly based on four drivers: (1) Inflation and interest rates; (2) US economic risk; (3) Sino-American relations; (4) Chinese economic policy.
🦄 Two further factors supporting our thesis are: (1) historically, soft patches in demand have been 4-6 quarters, and subsequent demand recoveries have been rapid; and (2) if our 2024 forecasts are correct (or too optimistic), in 2025 the luxury goods industry will face its easiest comparables (excluding 2020) since 2017, a year of strong growth.
THE METAVERSE STILL CAPTIVATES SILICON VALLEY | [METAPHYSICS]
Alexis Beck for Metaverse Fashion MAGAZINE
🦄 In 2024, the metaverse continues to remain popular, evidenced by high-profile events like Meta Connect. Despite skepticism and shifting tech trends, the ongoing investment in virtual reality, augmented reality, and AI by major players such as Meta shows that the vision for a connected, immersive digital world is still alive. Meta Connect’s prominence, especially with its focus on Horizon Worlds and new AR/VR products, is proof that Silicon Valley is still betting on the metaverse as the next big computing platform.
💥 Meta, led by CEO Mark Zuckerberg, is set to showcase cutting-edge advancements in artificial intelligence (AI), virtual reality (VR), and augmented reality (AR) at Meta Connect 2024. The event will feature key product launches, including the Quest 3S, a more affordable VR headset, and potentially new AR glasses. AI is also expected to take center stage with enhancements to Meta's platforms, like WhatsApp and Messenger, expanding their capabilities through AI-powered tools
👾 The event will take place in Silicon Valley, California, and will be livestreamed for a global audience on Meta's platforms. Additionally, owners of Meta Quest headsets can immerse themselves in the experience by tuning in through Horizon Worlds, Meta’s virtual reality social space Meta Connect 2024 is scheduled for September 25-26, 2024. Zuckerberg will deliver the keynote on the first day, with presentations from other Meta executives following, giving tech enthusiasts and developers an in-depth look at Meta's newest technological innovations
📺 There are several ways to stream Meta Connect 2024 live. The easiest option is to register for free on the Meta Connect website. Additionally, Meta will broadcast the event on its developer Facebook page. For a more immersive experience, users with Meta Quest headsets can access the keynote via Horizon Worlds, simulating the feel of attending in person from home. As with last year, Meta will also stream the event through YouTube. The developer panels, which continue through Thursday, will be available on both YouTube and Facebook. For a full schedule of Meta Connect 2024, you can find the details on Meta’s official site.
AI MARKET WILL SURGE TO NEAR $1 TRILLION BY 2027, BAIN SAYS | [SINGULARITY]
Saritha Rai for Bloomberg
🤖 The global market for AI-related products is ballooning and will hit as much as $990 billion in 2027, as the technology’s quick adoption disrupts companies and economies, Bain & Co. said. The market, including artificial intelligence-related services and hardware, will grow 40% to 55% annually from $185 billion last year, the consulting firm said in its fifth annual Global Technology Report released Wednesday. That will lead to revenue of $780 billion to $990 billion, Bain said.
🎯 The growth will be fueled by bigger AI systems and larger data centers to train and run them, driven by companies and governments using the technology to boost efficiency. Demand is rising so fast that it’ll strain supply chains for components, including chips needed to run the services, Bain said. Combined with geopolitical tensions, rising sales could trigger shortages in semiconductors, personal computers and smartphones, Bain warned.
🦄 Demand for upstream chip components such as integrated circuit design and related IP could rise 30% or more by 2026, putting pressure on manufacturers, Bain said. The cost of larger data centers could jump from $1 billion to $4 billion now to between $10 billion and $25 billion in five years, as their capacity expands to more than a gigawatt from 50–200 megawatts currently, it said. “These changes are expected to have huge implications on the ecosystems that support data centers including infrastructure engineering, power production, and cooling,” the consultancy said in a statement.
👾 Companies are moving beyond an experimentation phase and beginning to scale generative AI across their operations, Bain said. Small language models, similar to the large language models that led to the creation of OpenAI’s ChatGPT chatbot, but lightweight and efficient, could be favored by enterprises and countries amid concerns surrounding costs and data privacy.
💰 Governments including Canada, France, India, Japan and the United Arab Emirates are spending billions of dollars to subsidize sovereign AI, investing in domestic computing infrastructure and AI models created within their borders and trained on native data. But establishing successful sovereign AI ecosystems will be time-consuming and expensive, according to Anne Hoecker, head of Bain’s Global Technology practice.
THE METAVERSE INDUSTRY IS EXPECTED TO GROW IN THE NEXT DECADE, ACCORDING TO RECENT STUDIES | [METAPHYSICS]
Alexis Beck for Metaverse Fashion MAGAZINE
🎮 The metaverse, as defined by Matthew Ball in 2021, can be described as a collective virtual space that integrates augmented reality (AR), virtual reality (VR), and the internet. It allows for persistent, shared, and user-generated experiences. Ball's definition emphasizes key aspects such as interoperability, user control, and the economic systems that support these virtual environments.
💡 From this understanding, the Metaverse Tool Market refers to the ecosystem of software, applications, and platforms created to develop, manage, and enhance experiences in this shared virtual space. This market includes a diverse range of tools such as 3D modeling software, game engines, development frameworks, blockchain solutions, and user experience tools.
📈 According to a recent report by WiseGuyReports, the Metaverse Workplace Tool Market is projected to reach a size of USD 24.9 billion by 2032, with an expected compound annual growth rate (CAGR) of 24.12% during the forecast period (2024-2032). The optimistic forecast for the Metaverse Workplace Tool Market is driven by the growing demand for immersive and engaging work environments. As immersive experiences are increasingly adopted by large companies across various industries, workspaces and professional environments are emerging as key drivers of market growth.
💭 “The current flat web experiences for brands and events will evolve into a true 3D internet that is interactive and social similar to popular massive online multiplayer games like Final Fantasy 14 and World of Warcraft . However like all technologies we will have to include traditional ui/ux for older generations to not be left behind but the younger generations will be at an age where they will be the consumers with purchasing power.” said Joey Lee, founder of Immersive experience platform PixelCanvas.
🎯 As of now, North America leads the market, largely due to the presence of major technology companies and the early adoption of metaverse technologies. According to the latest data from Crunchbase, there are currently over 3,400 startups in the United States working on AI, AR, or VR, accounting for approximately 40% of the global total in these fields
🏇 However, the Asia-Pacific region is expected to witness the fastest growth, driven by rising investments in digital infrastructure and the increasing adoption of remote work practices in countries like China, Japan, and South Korea. Latin America and the Middle East & Africa are emerging markets with growing interest in virtual workplace tools, although adoption remains limited due to economic constraints and technological barriers.
NIKE’S NEW COLLECTION WITH NIGO DROPS THIS WEEK | [FASHION SYSTEM]
Alexis Beck for Metaverse Fashion MAGAZINE
👟 For the first time, sneaker giant Nike is teaming up with Japanese designer Nigo, the visionary behind A Bathing Ape (BAPE) and the current artistic director of Kenzo. In addition to his work in fashion, Nigo is a member of the Japanese group Teriyaki Boyz, where he has served as their in-house DJ since their debut in 2005.
👾 Rumors of NIGO’s partnership with Nike began circulating over a year ago, following his successful collaborations with adidas under his Human Made label. Speculation intensified when the designer was spotted wearing a pair of Air Force 3 Lows months later, igniting curiosity about a potential project. This was confirmed in June when Nigo appeared at his Spring/Summer 2025 Kenzo show sporting a colorful pair of collaborative Air Force 3 Lows, officially signaling the forthcoming campaign.
💭 “When I decided to work with Nike, I went to the Nike World Headquarters and drew a lot of inspiration from the archives, the lab, and the team working there,” Nigo shared. “Everything I saw had a great influence on the project. There are still many things yet to come, so please look forward to the Nike and Nigo project. It's the beginning of a long and exciting journey,” Nigo said in a statement on Nike's official website.
🚀 The Nike x NIGO Air Force III and apparel collection will be available starting September 28 exclusively at Otsumo Plaza in Tokyo, humanmade.jp, and the "I Know Nigo 2" pop-up in New York, followed by a global release on October 4 through SNKRS and select retailers.
[OP-ED] FASHION'S ROLE IN GAMING CULTURE
Hannah Grill from Game Changing Style for Metaverse Fashion MAGAZINE
📈 According to Newzoo’s Global Games Market Report, in 2023, the number of gamers worldwide hit 3.38 billion, with the industry generating as much as USD 184 billion. Chris Erb, founder and managing partner of video game marketing agency Tripleclix, states that the gaming industry now surpasses the global film and TV streaming markets and all North American sports combined, highlighting a solid case for fashion within the gaming sector.
🎮 Consultancy Anzu reported that 76 percent of US gamers follow fashion brands and influencers, and 66 percent consume luxury branded products in some form. Gen Z, the most promising target market for fashion in gaming, can be engaged authentically by understanding and respecting their values. This knowledge is key to establishing a meaningful connection with this influential audience.
🦄 Gamers are not only interested in expressing their identity digitally, which makes them valuable virtual shoppers, but they also exhibit high levels of engagement. Users often spend hours playing video games, sometimes using multiple screens to play and watch and frequently conversing with other gamers. This activity level allows brands to place ads and launch impactful campaigns that reach their audience in new and engaging ways.
🎯 When venturing into gaming as a company, it’s pivotal to effectively convey a brand’s essence through imagery that can be projected across various platforms to reach specific target markets. Traditional advertising no longer achieves personal engagement compared to virtual reality. By interacting with users in these dynamic environments, a brand is not just keeping up with trends- but leading them, attracting a tech-savvy consumer that values innovative experiences, such as Gen Z.
👾 Offering branded virtual clothing within games could significantly boost user engagement, as fashion in gaming serves as a legitimate form of self-expression. When players wear these items, they become walking billboards for the game's brand. To capitalize on this, brands should consider wearables - or ‘skins’ as they are called in gaming - that align with the game's themes and player styles, providing diverse and creative wardrobe options for avatars across multiple platforms.
🤖 The merging of fashion and gaming presents massive possibilities for brands, big or small, to connect with large and active audiences. With the gaming industry proliferating and many players, particularly from Gen Z, valuing virtual self-expression, fashion brands can partner with popular gaming platforms, creating in-game fashion items and leveraging virtual influencers.
ARNAULT WINS BIG ON CHINA STIMULUS WITH $17 BILLION WEALTH SURGE | [FINANCE]
Fashion Network
📈 Arnault’s net worth soared Thursday by $17 billion to $201 billion, his third-largest one-day increase ever, according to the Bloomberg Billionaires Index. Shares of his LVMH jumped by 9.9% on bets that stimulus measures from China’s Politburo would revive the nation’s appetite for luxury goods.
🏆Arnault, 75, now ranks as the world’s fourth-richest person, with his fortune almost entirely tied to his 48% stake in LVMH, according to Bloomberg’s wealth index. Shares of the world’s largest luxury-goods maker by market value have dropped 7.5% since the start of the year, as lackluster China demand and reluctant spending from consumers hurt LVMH’s earnings.
💵 But the message on Thursday from Chinese officials indicates efforts to revive growth and pledges to support fiscal spending and stabilize the beleaguered property sector, giving some positive momentum to the nation’s weak consumer outlook. Asia accounted for 38% of LVMH’s sales in 2023, and China is a large slice of that pie.
👾 Arnault isn’t the only billionaire beneficiary of China’s stimulus. PDD Holdings Inc. founder Colin Huang, who lost his title as China’s richest person last month after the company forecast tepid sales growth, added $5 billion on Thursday as shares of his e-commerce company surged 14%.
Weekly news and stories covering everything from the Fashion System, Investment, and AI to WEB3 and Crypto that truly matter in Metaverse Fashion
SILICON VALLEY INVESTORS REJOICE AT FED'S INTEREST RATE CUT | [FINANCE]
Katie Roof for Bloomberg
👾 Wall Street rejoiced over this week’s interest rate cuts, but there’s another investor class that was just as enthusiastic: venture capitalists.
The tech correction of the last couple of years has left many startup investors longing for the Federal Reserve’s bygone zero interest rate policy, or ZIRP, which helped fuel the industry’s boom in 2021 at the height of the pandemic.
🗣 Today, the 50-basis point rate cut, the first decline in more than four years, is a “reason for optimism,” said Anna Barber, partner at M13. She expects that consumer and business spending will eventually go up. Barber also said the rate cut could encourage investors in VC firms, or limited partners, to be more optimistic about the asset class. “Capital will flow more freely at lower rates,” she said.
💵 Interest rates impact the economy in countless ways; one effect is that low rates encourage more consumer spending because there is little incentive to keep money in a savings account. Consumer-facing Silicon Valley startups had benefited from this phenomenon. Venture capital firms can also be buoyed because safer assets like Treasuries yield less, and startups can borrow more freely.
💭 Jeff Richards, managing partner at Notable Capital, is also hopeful about the rate cut. He sees more startup liquidity events on the horizon, including more tech public listings, which have been sparse since rates increased in 2022. “It should be positive for the IPO market,” he said, “Lower rates generally encourage capital allocators to seek more risk, and newly public companies bring risk.”
GROK'S IMAGE GENERATOR, BLACK FOREST LABS, IS RAISING $100M AT A $1B VALUATION, SAY SOURCES | [SINGULARITY]
Ingrid Lunden for TechCrunch
🤖 While OpenAI pursues yet another monster fundraise, it is not stealing all the oxygen in the room: AI startups building promising foundational models can still open doors, and checkbooks. Multiple sources tell us that Black Forest Labs — a startup that’s building generative AI image models and came out of stealth two months ago with $31 million in funding — is closing new funding. A $100 million round at a $1 billion valuation is the amount we are hearing. The deal may not be final and so could still be subject to change.
🦄 Black Forest is not just any AI startup: The company was co-founded by the engineers who built the technology behind Stability AI. And it has a big-name customer. Elon Musk’s X.ai is using Black Forest’s Flux.1 text-to-image model to power image generation in its Grok chatbot. That’s a service that set people chattering immediately after it was launched in part because of the audacious results people generated with it.“No filters” still appears to be a thing a month later. We created the image on the right earlier this week.
💰 It’s not completely clear yet who is investing in the Freiburg, Germany-based startup’s latest round. One source mentioned that Lightspeed — one of the more prolific investors in AI in Europe, backing Helsing, Mistral, Stability AI and others — might be involved. Lightspeed has not yet responded to a request for comment, and neither has Black Forest itself. (We will update the post if they do.)
💥 Rapid fundraising in the area of generative AI has become quite commonplace in the current market: Startups building these tools need the funding to buy compute, to hire talent, perhaps to settle IP licensing agreements, and for marketing and business development to compete against bigger and even more well-funded players. In the case of Black Forest Labs, there are more technology launches coming up soon. The company has already said it’s working on a state-of-the-art text-to-video tool, with an as-yet-unannounced debut date.
AMAZON FOLLOWS ROBLOX WITH LAUNCH OF IMMERSIVE ADVERTISING EXPERIENCE IN FORTNITE | [METAPHYSICS]
Alexis Beck for Metaverse Fashion MAGAZINE
🎮 Amazon Ads is launching a new interactive experience on Fortnite, providing brands with unique marketing opportunities and guaranteed promotion through Amazon-owned streaming platform Twitch.The project, titled The Glitch, is described as "an integrated galaxy of brand-customized, playable worlds" within Fortnite. It is being developed by Halo co-creator Alexander Seropian and his game studio, Look North World.
💥 In collaboration with Twitch and Amazon Ads, Look North World has tailored each virtual world to reflect the identity of individual brand sponsors. For example, in the Domino's-themed world, players can visit a fully modeled pizzeria and host pizza parties that restore their character's health.This new venture was announced at TwitchCon San Diego on Friday, October 20th, where the first brand collaborations—featuring Domino's and Peloton—were revealed.
🤝 To support the launch of The Glitch, Amazon Ads has partnered with popular Twitch streamers to ensure they play and live-stream the experience from day one. These streamers will continue to promote the game over time, even when new branded worlds are not introduced.The launch of The Glitch can be seen as Amazon’s response to Roblox, which recently integrated virtual advertisement billboards into its game. Brands like ELF and Walmart use these billboards to increase awareness among Gen Z players while directly promoting products within the game.
🤖 Earlier this month, Roblox also teamed up with Shopify, allowing players to purchase goods directly from brands and creators without leaving the game. This has transformed Roblox into a direct sales tool for brands entering the metaverse.Both Amazon and Roblox are tapping into the rapidly expanding gaming content market, which is currently valued at approximately $200 billion. The sector is expected to grow at a compound annual growth rate (CAGR) of 12-14% over the next few years.
LUXURY'S SOFT PATCH WILL BE SHORT |[FASHION SYSTEM]
Luca Solca for The Business of Fashion
💡 Luxury sales are going through a rough patch. It’s tempting to think that something is broken with the sector’s price-value equation. But I have seen slowdowns more than a few times over the past 25 years, and from where I sit, my thesis is that what we are currently seeing is primarily a macroeconomic issue, with luxury fundamentals largely intact. This is not to say that some players don’t have homework to do — even big fish like LVMH. Equally, this is not to say that in the past ten years luxury hasn’t changed, with a significantly stronger focus on the super rich and price hikes to match. Yet, in my opinion, luxury’s current woes are mostly coming from a global cyclical slowdown, exacerbated by structural difficulties in China.
💵 The efforts of central banks are producing the desired effect: cooling down consumer demand. This is obvious when we look at recent revenue growth performance across all consumer sectors, both discretionary and staples. Luxury is no exception. Western demand is moderating, and this is only partially offset by a rebound of Chinese luxury demand out of “zero-Covid,” given low consumer confidence triggered by a falling real estate market. And as usual, the slowdown is starting from the bottom of the social pyramid, with high-end consumers still in spending mode.
📈 The question is: what comes next? A continued slowdown or the start of a rebound? Should we extrapolate the current trend? Or is there a macroeconomic rebound in the making — prompted by central banks taking action to cut rates and a change of leadership in Washington? The US Federal Reserve has just cut interest rates by 50 basis points — this seems like a good start. Our current forecast suggests luxury’s soft patch will be short: 2025 will bring improving demand and mid-single digit sales growth in a base-case scenario. This forecast is mainly based on four drivers: (1) Inflation and interest rates; (2) US economic risk; (3) Sino-American relations; (4) Chinese economic policy.
🦄 Two further factors supporting our thesis are: (1) historically, soft patches in demand have been 4-6 quarters, and subsequent demand recoveries have been rapid; and (2) if our 2024 forecasts are correct (or too optimistic), in 2025 the luxury goods industry will face its easiest comparables (excluding 2020) since 2017, a year of strong growth.
THE METAVERSE STILL CAPTIVATES SILICON VALLEY | [METAPHYSICS]
Alexis Beck for Metaverse Fashion MAGAZINE
🦄 In 2024, the metaverse continues to remain popular, evidenced by high-profile events like Meta Connect. Despite skepticism and shifting tech trends, the ongoing investment in virtual reality, augmented reality, and AI by major players such as Meta shows that the vision for a connected, immersive digital world is still alive. Meta Connect’s prominence, especially with its focus on Horizon Worlds and new AR/VR products, is proof that Silicon Valley is still betting on the metaverse as the next big computing platform.
💥 Meta, led by CEO Mark Zuckerberg, is set to showcase cutting-edge advancements in artificial intelligence (AI), virtual reality (VR), and augmented reality (AR) at Meta Connect 2024. The event will feature key product launches, including the Quest 3S, a more affordable VR headset, and potentially new AR glasses. AI is also expected to take center stage with enhancements to Meta's platforms, like WhatsApp and Messenger, expanding their capabilities through AI-powered tools
👾 The event will take place in Silicon Valley, California, and will be livestreamed for a global audience on Meta's platforms. Additionally, owners of Meta Quest headsets can immerse themselves in the experience by tuning in through Horizon Worlds, Meta’s virtual reality social space Meta Connect 2024 is scheduled for September 25-26, 2024. Zuckerberg will deliver the keynote on the first day, with presentations from other Meta executives following, giving tech enthusiasts and developers an in-depth look at Meta's newest technological innovations
📺 There are several ways to stream Meta Connect 2024 live. The easiest option is to register for free on the Meta Connect website. Additionally, Meta will broadcast the event on its developer Facebook page. For a more immersive experience, users with Meta Quest headsets can access the keynote via Horizon Worlds, simulating the feel of attending in person from home. As with last year, Meta will also stream the event through YouTube. The developer panels, which continue through Thursday, will be available on both YouTube and Facebook. For a full schedule of Meta Connect 2024, you can find the details on Meta’s official site.
AI MARKET WILL SURGE TO NEAR $1 TRILLION BY 2027, BAIN SAYS | [SINGULARITY]
Saritha Rai for Bloomberg
🤖 The global market for AI-related products is ballooning and will hit as much as $990 billion in 2027, as the technology’s quick adoption disrupts companies and economies, Bain & Co. said. The market, including artificial intelligence-related services and hardware, will grow 40% to 55% annually from $185 billion last year, the consulting firm said in its fifth annual Global Technology Report released Wednesday. That will lead to revenue of $780 billion to $990 billion, Bain said.
🎯 The growth will be fueled by bigger AI systems and larger data centers to train and run them, driven by companies and governments using the technology to boost efficiency. Demand is rising so fast that it’ll strain supply chains for components, including chips needed to run the services, Bain said. Combined with geopolitical tensions, rising sales could trigger shortages in semiconductors, personal computers and smartphones, Bain warned.
🦄 Demand for upstream chip components such as integrated circuit design and related IP could rise 30% or more by 2026, putting pressure on manufacturers, Bain said. The cost of larger data centers could jump from $1 billion to $4 billion now to between $10 billion and $25 billion in five years, as their capacity expands to more than a gigawatt from 50–200 megawatts currently, it said. “These changes are expected to have huge implications on the ecosystems that support data centers including infrastructure engineering, power production, and cooling,” the consultancy said in a statement.
👾 Companies are moving beyond an experimentation phase and beginning to scale generative AI across their operations, Bain said. Small language models, similar to the large language models that led to the creation of OpenAI’s ChatGPT chatbot, but lightweight and efficient, could be favored by enterprises and countries amid concerns surrounding costs and data privacy.
💰 Governments including Canada, France, India, Japan and the United Arab Emirates are spending billions of dollars to subsidize sovereign AI, investing in domestic computing infrastructure and AI models created within their borders and trained on native data. But establishing successful sovereign AI ecosystems will be time-consuming and expensive, according to Anne Hoecker, head of Bain’s Global Technology practice.
THE METAVERSE INDUSTRY IS EXPECTED TO GROW IN THE NEXT DECADE, ACCORDING TO RECENT STUDIES | [METAPHYSICS]
Alexis Beck for Metaverse Fashion MAGAZINE
🎮 The metaverse, as defined by Matthew Ball in 2021, can be described as a collective virtual space that integrates augmented reality (AR), virtual reality (VR), and the internet. It allows for persistent, shared, and user-generated experiences. Ball's definition emphasizes key aspects such as interoperability, user control, and the economic systems that support these virtual environments.
💡 From this understanding, the Metaverse Tool Market refers to the ecosystem of software, applications, and platforms created to develop, manage, and enhance experiences in this shared virtual space. This market includes a diverse range of tools such as 3D modeling software, game engines, development frameworks, blockchain solutions, and user experience tools.
📈 According to a recent report by WiseGuyReports, the Metaverse Workplace Tool Market is projected to reach a size of USD 24.9 billion by 2032, with an expected compound annual growth rate (CAGR) of 24.12% during the forecast period (2024-2032). The optimistic forecast for the Metaverse Workplace Tool Market is driven by the growing demand for immersive and engaging work environments. As immersive experiences are increasingly adopted by large companies across various industries, workspaces and professional environments are emerging as key drivers of market growth.
💭 “The current flat web experiences for brands and events will evolve into a true 3D internet that is interactive and social similar to popular massive online multiplayer games like Final Fantasy 14 and World of Warcraft . However like all technologies we will have to include traditional ui/ux for older generations to not be left behind but the younger generations will be at an age where they will be the consumers with purchasing power.” said Joey Lee, founder of Immersive experience platform PixelCanvas.
🎯 As of now, North America leads the market, largely due to the presence of major technology companies and the early adoption of metaverse technologies. According to the latest data from Crunchbase, there are currently over 3,400 startups in the United States working on AI, AR, or VR, accounting for approximately 40% of the global total in these fields
🏇 However, the Asia-Pacific region is expected to witness the fastest growth, driven by rising investments in digital infrastructure and the increasing adoption of remote work practices in countries like China, Japan, and South Korea. Latin America and the Middle East & Africa are emerging markets with growing interest in virtual workplace tools, although adoption remains limited due to economic constraints and technological barriers.
NIKE’S NEW COLLECTION WITH NIGO DROPS THIS WEEK | [FASHION SYSTEM]
Alexis Beck for Metaverse Fashion MAGAZINE
👟 For the first time, sneaker giant Nike is teaming up with Japanese designer Nigo, the visionary behind A Bathing Ape (BAPE) and the current artistic director of Kenzo. In addition to his work in fashion, Nigo is a member of the Japanese group Teriyaki Boyz, where he has served as their in-house DJ since their debut in 2005.
👾 Rumors of NIGO’s partnership with Nike began circulating over a year ago, following his successful collaborations with adidas under his Human Made label. Speculation intensified when the designer was spotted wearing a pair of Air Force 3 Lows months later, igniting curiosity about a potential project. This was confirmed in June when Nigo appeared at his Spring/Summer 2025 Kenzo show sporting a colorful pair of collaborative Air Force 3 Lows, officially signaling the forthcoming campaign.
💭 “When I decided to work with Nike, I went to the Nike World Headquarters and drew a lot of inspiration from the archives, the lab, and the team working there,” Nigo shared. “Everything I saw had a great influence on the project. There are still many things yet to come, so please look forward to the Nike and Nigo project. It's the beginning of a long and exciting journey,” Nigo said in a statement on Nike's official website.
🚀 The Nike x NIGO Air Force III and apparel collection will be available starting September 28 exclusively at Otsumo Plaza in Tokyo, humanmade.jp, and the "I Know Nigo 2" pop-up in New York, followed by a global release on October 4 through SNKRS and select retailers.
[OP-ED] FASHION'S ROLE IN GAMING CULTURE
Hannah Grill from Game Changing Style for Metaverse Fashion MAGAZINE
📈 According to Newzoo’s Global Games Market Report, in 2023, the number of gamers worldwide hit 3.38 billion, with the industry generating as much as USD 184 billion. Chris Erb, founder and managing partner of video game marketing agency Tripleclix, states that the gaming industry now surpasses the global film and TV streaming markets and all North American sports combined, highlighting a solid case for fashion within the gaming sector.
🎮 Consultancy Anzu reported that 76 percent of US gamers follow fashion brands and influencers, and 66 percent consume luxury branded products in some form. Gen Z, the most promising target market for fashion in gaming, can be engaged authentically by understanding and respecting their values. This knowledge is key to establishing a meaningful connection with this influential audience.
🦄 Gamers are not only interested in expressing their identity digitally, which makes them valuable virtual shoppers, but they also exhibit high levels of engagement. Users often spend hours playing video games, sometimes using multiple screens to play and watch and frequently conversing with other gamers. This activity level allows brands to place ads and launch impactful campaigns that reach their audience in new and engaging ways.
🎯 When venturing into gaming as a company, it’s pivotal to effectively convey a brand’s essence through imagery that can be projected across various platforms to reach specific target markets. Traditional advertising no longer achieves personal engagement compared to virtual reality. By interacting with users in these dynamic environments, a brand is not just keeping up with trends- but leading them, attracting a tech-savvy consumer that values innovative experiences, such as Gen Z.
👾 Offering branded virtual clothing within games could significantly boost user engagement, as fashion in gaming serves as a legitimate form of self-expression. When players wear these items, they become walking billboards for the game's brand. To capitalize on this, brands should consider wearables - or ‘skins’ as they are called in gaming - that align with the game's themes and player styles, providing diverse and creative wardrobe options for avatars across multiple platforms.
🤖 The merging of fashion and gaming presents massive possibilities for brands, big or small, to connect with large and active audiences. With the gaming industry proliferating and many players, particularly from Gen Z, valuing virtual self-expression, fashion brands can partner with popular gaming platforms, creating in-game fashion items and leveraging virtual influencers.
ARNAULT WINS BIG ON CHINA STIMULUS WITH $17 BILLION WEALTH SURGE | [FINANCE]
Fashion Network
📈 Arnault’s net worth soared Thursday by $17 billion to $201 billion, his third-largest one-day increase ever, according to the Bloomberg Billionaires Index. Shares of his LVMH jumped by 9.9% on bets that stimulus measures from China’s Politburo would revive the nation’s appetite for luxury goods.
🏆Arnault, 75, now ranks as the world’s fourth-richest person, with his fortune almost entirely tied to his 48% stake in LVMH, according to Bloomberg’s wealth index. Shares of the world’s largest luxury-goods maker by market value have dropped 7.5% since the start of the year, as lackluster China demand and reluctant spending from consumers hurt LVMH’s earnings.
💵 But the message on Thursday from Chinese officials indicates efforts to revive growth and pledges to support fiscal spending and stabilize the beleaguered property sector, giving some positive momentum to the nation’s weak consumer outlook. Asia accounted for 38% of LVMH’s sales in 2023, and China is a large slice of that pie.
👾 Arnault isn’t the only billionaire beneficiary of China’s stimulus. PDD Holdings Inc. founder Colin Huang, who lost his title as China’s richest person last month after the company forecast tepid sales growth, added $5 billion on Thursday as shares of his e-commerce company surged 14%.
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