13 October 2023, Mumbai
Web 3.0, the third major evolution of the internet, is gathering mixed response from the fashion world. Some luxury fashion labels have embraced Web 3.0 communities by beginning to accept crypto payments, such as Gucci, Off-White, and Farfetch. However, many brands are hesitant due to the volatility of cryptocurrencies and the recent crypto crash.
Consumer delight
Despite some high-profile examples, consumer engagement with Web 3.0 activations is still on the low side, and it skews towards the young, affluent, male demographic. This is likely due to the fact that Web 3.0 is still in its early stages of development, and many consumers are not yet familiar with it.
The crypto crash has also sapped the forward momentum of the emerging Web 3.0 marketing landscape, as many CMOs are now skeptical of the technology. If cryptocurrencies don't regain the public's trust, it is unlikely that brands will embrace Web 3.0 for what it is.
Why Some Brands Are Fence-Sitters
Volatility of cryptocurrencies: Cryptocurrencies are known for their volatility, which can make them risky for businesses to accept.
Recent crypto crash: The recent crypto crash has further eroded public trust in cryptocurrencies.
Low consumer engagement: Consumer engagement with Web 3.0 activations is still on the low side.
Skepticism from CMOs: Many CMOs are skeptical of Web 3.0, especially in light of the recent crypto crash.
