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Tencent’s AI model generates virtual worlds from a single text prompt

Tencent, China

China – Tencent has launched an open-source AI model, Hunyuan3D World Model 1.0, that allows users to generate complex 3D environments from a single text prompt or image.

The release of this new model marks a significant advance in generative AI, enabling creators to quickly build detailed 3D worlds. The tool transforms simple inputs into full 360-degree panoramic scenes, complete with editable object meshes that can be exported directly to major platforms like Unity and Unreal Engine. Tencent touts it as the first open-source model of its kind to offer such comprehensive world generation.

The Hunyuan3D suite, which also includes the asset-generation tool Hunyuan3D 2.0, now allows users not only to build entire virtual worlds but also to populate them with characters and other elements. This integration streamlines the creative process for professionals in VR, game design and digital art, offering a powerful, accessible solution for rapid content creation.

For more insights on how early adopters are using real-time AI-powered simulation engines, read The Future Laboratory’s and Together Group’s New Codes of Luxury: Immersive Technologies for Transformation report.

Strategic opportunity

Consider how to use AI-generated 3D worlds and assets to build virtual showrooms, branded environments, try-before-you-buy interfaces and experiential marketing

Rare Beauty launches debut fragrance and customisable layering balms

Rare Beauty, US

Global – Rare Beauty has entered the fragrance market with a debut scent that reflects its feel-good ethos. Rare Eau de Parfum, created in France with Byredo collaborator Jérôme Epinette, blends caramel, pistachio and vanilla with spiced notes of ginger and sandalwood.

Its launch is accompanied by four Fragrance Layering Balms – Amber Vanilla, Floral Peony Blossom, Fresh Bergamot and Woody Oak – designed for scent personalisation and pulse-point layering.

The fragrance’s gold-capped bottle was created with hand therapists and packaging engineers to ensure easy use for people with dexterity issues. It can be activated using one finger, four fingers or the palm. Vegan, paraben-free and dermatologist-tested, the £71 ($94, €83) scent will be sold exclusively at Sephora from 7 August 2025. Rare Beauty will also donate 1% of sales to its Rare Impact Fund.

In our Future Forecast 2025: Beauty report, we explored how fragrance is shifting beyond olfactory benefits to become a tool for mood regulation, personal expression and play. By launching layer balms, Rare Beauty stands out in a saturated market by empowering consumers to co-create a scent that reflects their daily shifts in mood, identity and intention.

Strategic opportunity

Fragrance and beauty brands should offer buildable, layerable formats that invite personalisation – from scent balms to mixable pigments – turning routines into rituals of self-expression

Stat: Luxury and online retail fuel men’s skincare boom

Lotus Herbals, India

Global – The men’s skincare market is projected to be worth £21.05bn ($27.99bn, €24.20bn) by 2031, according to a report by Research and Markets. Shifting gender norms, increasing self-care awareness and digital access to beauty knowledge are driving demand, with urban lifestyles and pollution further boosting routine adoption.

Growth is greatest in North America, where consumers favour natural ingredients, multi-functional products and clinically backed solutions. Once dominant, shaving products are losing ground to moisturisers, sunscreens and serums, particularly among Millennial and Gen Z men experimenting with advanced regimens.

While mid-priced products account for the largest market share, luxury skincare is gaining traction among urban consumers willing to pay for high-quality formulations. Online retail is the fastest-growing channel, enhanced by AR tools, reviews and influencer-led marketing.

Our India’s Beauty Playground report explores the booming men’s grooming market, especially among young men, who are placing greater emphasis on skincare and moving away from outdated stereotypes linking grooming solely with metrosexuality.