Global consulting powerhouse McKinsey & Company has released the State of Fashion Technology Report 2022 in collaboration with Business of Fashion. The full report at 64 pages is available for download. Key findings in the report concern how fashion companies are investing in technology and also how audiences are consuming fashion through new technologies.
There are five key themes identified in the report that represent pressing challenges to be met by the industry. The first of these is "metaverse reality check", in which fashion brands are urged to separate the concrete opportunities from the hype. The other themes are "hyperpersonalization", "connected stores", "end-to-end upgrade" and "traceability first".
The metaverse is of particular interest in this study because of both cultural impact and real spending. The report cites that global spending on virtual goods reached an excess of $100B in 2021, more than doubling the total in 2015. Simply put, digital fashion is an absolutely massive opportunity that the largest and most influential brands in the world are trying to capture. As people in the space are fond of saying, we are still early.