Why Fashion's Superficial Approach to Technology Falls Short
Brand Universes use new technologies and evolving operational structures as tools to create entirely new systems.
This article, which in the full version of this research report appears under the chapter title ‘Part 4: Orbiting Tomorrow’, is part 11/12 of The Next Big Bang: The Brand Universe Solution to Growth, the inaugural research thesis by edition+partners, distributed here on SOTA. In the ever-evolving landscape of brand development, the concept of a Brand Universe emerges as both a tangible entity and a strategic methodology, offering a dynamic approach to brand survival and growth.
TL;DR
Transformation in Brand Universes extends beyond aesthetics and marketing tricks to impact the entire value chain.
Brand Universes use new technologies and evolving team structures as tools to create entirely new systems, driving bigger systemic shifts within the industry.
The growing demand for co-creation signals a shift towards a more collaborative and inclusive brand-consumer ecosystem.
A little over a week ago, while walking in Paris, Balenciaga sent out a push notification notifying millions of followers that its Fall/Winter 2024 fashion show was about to go live on Instagram. A few minutes later, from a venue in the real Paris, Balenciaga broadcasted mind-twisting scenes of an AI-generated Paris across hundreds of wall and floor screens that made up its runway.
What followed were deconstructed and edited landscapes from around the world, as well as digital cats, dogs, sheep, and a wallpaper of thousands of user-generated phone videos dropping from the sky. With models stomping through the scene, one didn’t know where to point their gaze.
Balenciaga’s infamous Creative Director Demna Gvasalia, whose show invitation was a personal voice note from the man himself, said the following about the whole ordeal: “Photoshopped into the fake reality, into basically the overload of content that’s killing our society, in a way. You know, like TikTok videos.”
While visually impressive, Balenciaga's portrayal of the rise of generative technology and the blurring lines between reality and fiction felt overtly literal. For a couture house like Balenciaga, the incorporation of AI appeared as merely another seasonal storyline lacking genuine connection to its brand codes or narrative.
Despite adding to the noise surrounding Gvasalia’s social commentary on society's never-ending content and communication overload, Balenciaga's approach seemed more focused on aesthetic impact than meaningful integration of themes. And that’s where most fashion houses are getting it wrong.
Embracing Innovation
If we define Brand Universes by their capacity to consistently and credibly extend their presence across the products they offer, the communities they serve, and the ways they seamlessly inspire and sell, their ongoing success is underpinned by their capability to promptly adopt emerging technologies, exploit new platforms, and optimise team structures.
This agility consistently positions them at the forefront of their industry, ensuring they seize commercial opportunities as they arise and at large, remain ahead of the curve at all times.
“The pace at which platforms are moving requires constant experimentation and exploration and that’s probably the hardest part for brands. It’s not a core skill most brands have in their toolkit, and it's why so many brands hit growth plateaus,” says Krishna Nikhil, a business executive who has held senior executive positions at SSENSE, McKinsey and most recently was CEO at Pangaia.
In essence, Brand Universes distinguish themselves by eschewing imitation. Their authenticity and constant re-invention of self shines through as they navigate uncharted territories, showcasing genuine creativity and innovation.
This distinctive approach differentiates and positions them as trailblazers within their niche, shaping influential movements. As seen with Balenciaga’s latest stunt, brands are only just now dipping their toes into the water regarding new technological innovations, with only a handful emerging as successful pioneers who look beyond the surface level promotional benefits new tech has to offer.
So where are we now? And where does the industry go from here?
The Technology Marketing Boom
Over the past six months, social feeds have been overtaken by giant inflatable bags, puffer coats, and an enclave of beauty products against the backdrops of London, Paris, and Shanghai. The eye-catching, augmented reality viral-marketing-play-turned-gimmick has been employed by a wide-range of brands and retailers including The North Face, Marc Jacobs, L’Oréal, Vestiaire Collective, Maybelline, Jacquemus, Barbara Sturm, Victoria Beckham, and Bash.
Elsewhere, in a first, New York-based label Collina Strada debuted a physical collection of garments created by an AI model fed by the brand’s past collections. Danish brand Heliot Emil flipped the concept by releasing its new collection physically in Paris the following month, yet digitally presenting it to its fans through AI-generated imagery of runway and location scenes, models, and backstage preparations, blurring the lines between real and fake.
Over on SUNNEI’s website, the Italian brand has made virtual try-ons for its hit earrings and sunglasses, as well as digital 3D models of its objects collections, which through AR technology can be projected anywhere in a shopper’s space, part of its online shopping experience for years.
Ambush’s Yoon Ahn and Coca-Cola imagined what the popular beverage would taste and look like in the year 3000. The flavour and can, created with the help of AI, could be observed by a Y3000 AI Cam, a new AI-powered experience giving fans an unexpected perspective on what the year 3000 could look like.
Then there’s Coperni. From spray-painting Bella Hadid live in front of an audience with liquid fibre to partnering with leading robotics company Boston Dynamics, to most recently working with NASA to release its ‘Air Swipe’ bag made from 99% air made from nanomaterial silica aerogel (the world’s lightest solid), the Parisian label has made material and technological innovations part of the majority of its viral marketing efforts over the past year.
What went under the radar, however, was its September innovative release of “The Wolf, The Lamb, and The Stream,” a generative film which will run continuously for six months in real time on Epic Games and its website, and which will see a new version of itself being created every 40 seconds.
The stories featuring model Lila Moss and a robotic animal will be based on multiple choices of sets, scenarios, and looks from Coperni’s latest collection, together shaping a new form each time. At least 320,000 versions will be generated live on the brand’s channels over the lifespan of the campaign.
What We Actually Want From AI
While novel for now, only 17% of respondents surveyed said they wouldn’t care if their favourite fashion brands’ imagery or communications were created by AI tools. When asked what benefits they would expect to receive from fashion brands leveraging AI, its usage for creative campaigns and content creation even ended at the bottom of the list of expectations (22%).
In fact, size and fit recommendations (59%), more innovative solutions to reducing environmental impact (58%), and a more personalised shopping experience (50%) all topped the list of expectations, even over cheaper product (25%) and faster delivery (35%).
Indeed, impactful transformation goes beyond aesthetics and marketing; it spans a brand’s entire value chain, including its team, systems, and audience. From enhancing supply chain and logistics operations to optimising marketing strategies, store operations, digital commerce, and consumer experiences to automating and scaling consumer segmentation, new tech becomes a driving force in reshaping and enhancing various facets of the Brand Universe.
AI and other new technologies should be used to make better brands, not faster and cheaper ads. It should improve customer service, not do it badly or for free. And it should improve what we make, how we make it, and by who is better, not more menial.
Bettter, a first of its kind upcycling system that operates as a multi-faceted platform with a shared purpose, is already envisioning such change, challenging the entire fashion system in the meantime.
Founded in 2020 by former Fashion Director of Vogue Ukraine, Julie Pelipas, Bettter has developed algorithms that aim to take the complexity out of upcycling dead stock garments through developing a software that virtually maps patterns and tackles required adjustments by using scans of customers’ body metrics. Tackling overproduction is just one of the beneficial results of the process.
Since then, she’s built an R&D and production facility in Kyiv, moved it to Porto after the war in Ukraine started, won the LVMH Karl Lagerfeld Prize, and has entered a plethora of brand partnerships, helping major luxury brands find a second home for their deadstock fabrics. In its horizon is an industrial problem-solving technology even more ambitious.
“Bettter wants to create educational and creative upcycling stations around the world that will source, upcycle, and sell in the same market. There will be the real life universe of Bettter where we’ll also gather and engage with customers. Rather than having a big name designer, we’ll work with local creative talents to develop the upcycling techniques and create new designs. That’s how we build a creative community,” says Bettter’s Chief Executive Officer, Giulia Galli.
“We call them SDAs (smart design algorithms). They match the pattern with deadstock that has a good fit. If you create a SDA and we decide to produce it, the royalties of that part will come to you. We’re also crucially creating a technology now that can be plugged into any production that allows for upcycling in bulk. In the future, we can go to brands’ factories, plug in our technology, and they can upcycle in their factories which can be part of their sustainability branch as well as an additional revenue stream."
Creating New Systems
Brand Universes, exemplified by Bettter, don’t forcibly integrate new technologies and evolving team structure into existing systems. Instead, they leverage them as tools to create new ones all together. While ideas enabled by tech such as revenue-sharing or community-creation may seem far-fetched to some, we need to look at the willingness to adopt new technologies, team structures, and systems that are within reach today and which over time turn into bigger systemic shifts.
Despite only 8% of those surveyed say they have earned royalties through co-creation with brands, 21% have already co-created products with brands on their brand platforms, and 26% have created virtual designs or concepts reimagining brand designs. Additionally, 37% follow creators reimagining designs, and 51% follow bootleggers who customise fashion products (with 19% making a purchase over the past month).
“Nike's Web3 approach, for example, has obviously been incredibly successful so far. Their campaigns are more like long-term initiatives: .SWOOSH utilises Web3 not just as a sales channel but as an acquisition strategy to reach new audiences and communities,” says Leanne Elliott Young, Co-Founder and CEO of Institute of Digital Fashion.
“The success lies in a multifaceted approach encompassing loyalty, co-creation, virtual goods, and engagement with platforms like Roblox and Clone X. We want people to think creatively about how we approach using these new platforms and new technologies — we have a chance to build from the ground up so we can afford to think out of the box. The possibilities are endless,” she adds. “Taking this IRL x URL approach not only diversifies [brands’] engagement strategies but also caters to evolving consumer preferences, positioning them at the forefront of the dynamic landscape where physical and digital worlds intersect.”
It’s now clear that Brand Universes thrive through authenticity and continuous reinvention, leaving an indelible mark on the industry they inhabit. Success for those following the Brand Universe blueprint hinges on agility, embracing emerging technologies, and connecting with diverse consumer segments through genuine change. In the interplay of commerce and creativity, Brand Universes stand as beacons, inspiring us to envision a future where innovation knows no bounds.
Until the next era emerges.
Next Tuesday, in part 12/12 (the final instalment) of The Next Big Bang: The Brand Universe Solution to Growth, we 19 fashion and tech leaders share recommendations on how they’re preparing for an industry not ready for the upcoming speed of technological and operational change.