Between 2021 and 2022, the metaverse dominated fashion headlines. Major brands like Nike, Dolce & Gabbana, and Tommy Hilfiger invested heavily in virtual fashion shows, NFT apparel collections, and digital storefronts. At its peak, the NFT market was so hot that trading volumes soared, and brands believed digital goods could become an “evergreen” revenue stream, immune to the volatility of traditional retail.

By 2023, NFT trading volumes had collapsed by 97% from their peak. Consumer interest waned, especially among adults, and the speculative bubble burst as crypto markets crashed. Even the most high-profile investments, such as Nike’s $1 billion acquisition of RTFKT, failed to deliver long-term value. Metaverse activations became ghost towns, and companies quietly shuttered their digital fashion divisions.

3  Lessons Learned

1. Prioritise Practicality Over Hype: Hype without substance is just that, hype. Don’t chase the speculative trend - chase the business impact through iterative practical grounded approaches -  test, learn and scale fast.

2. Technology Must Solve Real Problems: The most successful innovations are those that address tangible challenges, such as supply chain transparency, efficiency, sustainability, and customer experience, rather than chasing novelty for its own sake.

3. ROI Matters: Massive investments in virtual worlds yielded little return. In contrast, practical tech - like AI-powered personalisation - has delivered measurable business results. Target, measure, learn and move.

Demand more

The collapse of the metaverse  is a necessary reset. It reminds us that innovation must be anchored in utility, not fantasy. But perhaps the most pressing question now is: has the metaverse collapse made individuals reluctant to embrace the next wave of change, even when it's genuinely transformative – ie GenAI?

My view: the real opportunity lies in not retreating from change, but in demanding more from it  - more results, and more evidence.