Future+ Fridays | Issue24

1. Luxe car brands using blockchain to drive innovation

What's happening: The automotive blockchain industry is set to grow to $5.61 billion by 2030, according to market research. In the past years, the automotive industry has delved into the world of NFTs and blockchain until Porsche’s controversial 2023 launch led to backlash over high prices and poor communication, pushing other car brands to rethink their NFT strategies. They are now focusing on creating more valuable and customer-oriented digital assets, leading to innovative and exciting developments in the sector. Here is a breakdown of previous activations by some big names.

TLDR:

• Porsche’s 2023 NFT launch faced backlash due to high prices and poor communication helping brands revise their NFT strategies for better value and customer satisfaction.

• Bugatti teamed up with Asprey Studio for an exclusive NFT drop featuring diamond-studded eggs, priced from $20,000 to $50,000 and included a gold signet ring.

• Renault launched NFT-connected sneakers priced at €265, showing that non-premium brands can succeed with NFTs.

• Mercedes-Benz’s NXT has been releasing token-powered drops since May 2023, offering digital car passports and collectible wall cards at the latest Nürburgring race event.

• Since 2022, Lamborghini uses NFTs to engage new generations and preserve its brand story, having launched its first project, ‘The Space Key’.

• In 2023, Rolls Royce collaborated with artist Sacha Jafri on Phantom model NFTs, with all profits going to charity.

• Since 2022, Alfa Romeo offers digital certificates for its Tonale model, detailing a vehicle's lifespan, including maintenance records.

Why it matters: The adoption of NFTs and blockchain by car manufacturers demonstrates a transformative phase in the automotive industry. Porsche’s experience demonstrated the importance of aligning digital projects with customer expectations. From enhancing luxury collectibles to offering practical benefits like fraud-proof vehicle histories, also making the blockchain the future for used car, NFTs are paving the way for a modern, transparent, and innovative automotive landscape. This evolution opens up new revenue streams and strengthens brand loyalty. Additionally, another potential trend is using digital assets to provide exclusive access to events and experiences, which can help increase fan engagement and loyalty.

2. Swipe culture: From dating apps to online shopping

What's happening: Swipe culture, popularised by dating apps like Tinder and Bumble, uses the simple, addictive action of swiping right or left to provide instant feedback. FashWire, a fashion technology company with a premium shopping app platform marketplace, taps into this emotional appeal, blending it with AI-driven product recommendations to create a personalised shopping experience.

TLDR:

• FashWire and its beauty platform GlossWire introduced AI-based personalised product recommendations.

• The tool uses a swipe-right/swipe-left feedback system, inspired by dating apps like Tinder and Bumble.

• The app gathers real-time data to inform the 'Trending Now' section for the user.

• Created in collaboration with SnapSoft and inspired by Amazon Web Services (AWS) technology, it covers over 60,000 items from 800+ global brands.

• This helps provide real-time consumer behaviour analytics and feedback to brands for better consumer insights, allowing them to adjust offerings to drive conversions.

Why it matters: FashWire's innovative use of AI and familiar dating app mechanics makes online shopping more engaging and personalised. Using real-time feedback and data, both consumers and brands benefit from more accurate product recommendations and insights into shopping behaviours. More than only enhancing the user experience, it also drives sales and loyalty, showcasing how technology can transform traditional industries.

3. AI wearables as fashion statements

What’s happening: Tech wearables, first popularised by smartwatches over a decade ago, are making a significant resurgence. Now, they are powered by generative AI and advanced smart assistants. Given that most people are conscious about what they wear, will these new devices have the same impact?

TLDR:

• Tech companies are innovating with wearables like wristbands, rings, glasses, and now, pendants.

• The new "Friend" pendant necklace, an always-listening digital companion, will start shipping in Q3, 2024.

• Meta and Ray-ban’s smart glasses, mimic the design of traditional Ray-Ban glasses, making them easy to merge into the wearer's everyday life. This shows that tech companies are partnering with fashion brands to make these devices more stylish and acceptable.

• Fashion brands are also interested: Coperni used the Humane device on its models last September, Gucci collaborated with health tracking ring, Oura on a ring and previously with Snap on smart glasses, and Hermes is in a 10-year partnership with Apple Watch.

• These wearables aim to seamlessly integrate into daily life, providing contextual information without needing smartphones.

• Privacy concerns arise as these devices constantly listen and monitor surroundings without people knowing.

• Similar to spatial computing, this marks the introduction of ambient computing, where devices can digest and provide contextual information about the outside world without requiring the wearer to pull out their phone.

Why it matters: The resurgence of tech wearables brings back the previous excitement around smartwatches, marking a new era of ambient computing. These devices, enhanced by generative AI, aim to become indispensable by offering seamless integration into daily life. However, as tech companies innovate and collaborate with fashion brands, they face the challenge of addressing consumer concerns about constant monitoring and data privacy while making these wearables desirable and essential.

4.L’Oréal’s CEO on the current and future beauty market

What's happening: The beauty market is experiencing significant growth and transformation, driven by various trends and evolving consumer behaviours across different demographics. L'Oréal CEO Nicolas Hieronimus addressed financial analysts and journalists on the company's strong performance and future plans following their second-quarter and first-half 2024 earnings release, providing an overview of the current state of the beauty industry.

TLDR:

• The global beauty market is experiencing consistent growth at a rate of 5-6%.

• L'Oréal's net profits rose by 8.8% in the first half of 2024, with sales increasing by 7.5% and shares rising by 2.1%.

• Hair care, fragrance, makeup, skincare, and hair colour were the top-performing categories, in that order.

• Online sales, especially in emerging markets, saw significant growth, outpacing offline sales and becoming a key focus for future actions. Indeed, across all groups and companies globally, online sales account for over 20% of sales, with further growth anticipated.

• L'Oréal experienced strong performance in the US, Mexico, and the DACH region, while results in Asia were mixed. Specifically, there was growth in the luxe brand segment, a strong trend across various industries in Asia

• With all of its brands, L'Oréal's addressable market is 4 billion people, nearly half of the world's population. The company aims to reach 2 billion consumers within the next decade, focusing on expanding its presence in emerging markets, which it has only recently started to penetrate.

• It is worth mentioning that L'Oréal may face more competition in an increasingly competitive beauty market, with new independent brands emerging and existing brands seeking to scale. This competition is driving innovation and differentiation in product offerings.

• L'Oréal stays ahead with a dedicated research and innovation team of more than 4,000 researchers and 6,400 digital specialists.

Why it matters: L'Oréal's financial performance and strategic focus on digital sales and emerging markets highlight its strength and adaptability in the rapidly growing global beauty market. The company's research and innovation capabilities, combined with its ability to navigate increased competition and evolving consumer preferences, ensure it remains a dominant force in the beauty industry. However, the rise of competition continuously pushes L'Oréal to innovate, maintaining its leadership and relevance in the market.

5. Culture spotlight: Gucci ‘Then and Now’ exhibition in Japan

What's happening: In 1964, Tokyo hosted the Olympics, marking Japan's re-emergence on the world stage post-World War II. This period of prosperity saw the influx of luxury brands, including Gucci, into Japan. Fast forward to now, Gucci is celebrating 60 years in the country with a new exhibition, "Bamboo 1947: Then and Now” Celebrating 60 Years of Gucci in Japan, at the Gucci Ginza Gallery in Tokyo.

TLDR:

• The exhibition displays 60 bags from Gucci’s Florentine archive, showcasing a variety of fabrics and finishes primarily from the 1980s and 1990s, specially selected by a dedicated Gucci archivist.

• Each of the 60 vintage pieces served as a 'base' for a ‘remodelling’ creative project that brings together Japanese artisans and contemporary artists to reimagine those selected Bamboo 1947 bags.

• The featured Japanese artisans and contemporary artists, include goldsmith and Living National Treasure Morihito Katsura and his student Naoko Ai, ceramist Nakazato Hirotsune, lacquerer Ai Tokeshi, photographer Daido Moriyama, and painters Nami Yokoyama and Yui Yaegashi.

• The results highlight the connection between the creativity of Japanese artists and craftspeople and the skills of the Italian artisans who originally produced these handbags.

• Gucci’s ties with Japanese craftsmanship continue to resonate, weaving a story of tradition and innovation.

• For fashion enthusiasts, the exhibited creations are available for purchase. The exhibition runs from August 2 until September 23, 2024.

Why it matters: This exhibition celebrates Gucci's six-decade legacy in Japan and also highlights the timeless appeal and innovative craftsmanship of the Bamboo 1947 bag. By collaborating with Japanese artisans, Gucci bridges Italian luxury with Japanese artistry, creating a unique cultural fusion that pays homage to both traditions. Visitors can witness the evolution of a fashion icon and appreciate the blend of classic design with contemporary reinterpretation, making it a must-see for fashion enthusiasts and fans.