Lately, many luxury brands have starred in a series of news related to the digital sphere, from Tiffany pendants to CryptoPunks forks, the Dolce & Gabbana’s inaugural NFT collection, the Collezione Genesi, or Burberry’s wardrobes for Honor of Kings, Balenciaga for Fortnite or Gucci for Zepeto and Roblox.
The rules that apply to other business sectors also apply to the luxury fashion industry. The luxury fashion industry has created in-depth documentation to better understand the competitive marketplace since changes are so significant and complicated. Without a doubt, the raging fires of NFTs have ignited a burning demand for blockchain technology in the fashion industry. Let’s analyze what the luxury brands are doing with this new technology and what to expect as fashion moves forward towards a tech-savvy future.
First of all, NFT stands for Non-fungible Tokens, a type of digital asset developed using blockchain technology. It enables the transfer of value through an unreplicable medium. NFT is not a newcomer to the scene; rather, the digital collectable was first released in 2012. More specifically, it wasn’t until 2017 that this technology gained notoriety because of Crypto Kitties, a digital collectible that could be grown like a kitten and was subsequently reached in value as high as $800,000.
How NFT in Fashion got its start
The fashion and beauty sectors have recently made significant efforts to promote a true and impartial grasp of business alterations in order to reinforce new words commensurate with the changes in business today. As fashion utterly failed to capitalise on the potential presented by e-commerce, the development of NFTs turned out to be its best chance of rejoining the fast-moving tech train. I recall a large number of firms being absolutely disinterested in using the new platform when e-commerce initially appeared on the market. Since then, the fashion industry has grown considerably more careful.
Gucci only began marketing products as an NFT this year, including unique footwear. Even high-end watch companies are advertising NFT auctions on the various social media sites. There is no end in sight for NFT 2.0.
The world’s first digital-only dress on the blockchain sells for $9500
In March 2019, a brilliant idea emerged from the fervor surrounding blockchain technology as it spreads through important sectors like the arts and entertainment. Iridescence is a digital costume that was created by a community of three brands, including Dapper Labs, a digital couture company, and Johanna Jaskowska. It was finally sold on blockchain for US $9,500, and in May of the same year, top luxury firm LVMH Mot Hennessy purchased the item.
Brands Leveraging NFTs To Authenticate Luxury Goods
As the owner of some of the most well-known fashion labels in the world, including Fendi, Dior, and Givenchy, Louis Vuitton was the first business to use blockchain technology to verify an authenticity of luxury goods.
The Aura platform was created by collaborating with Microsoft and Consensys, a blockchain software business. It is a blockchain platform that lets customers trace the history of their purchases.
The Fashion Institute of Technology conducted study on this subject, and a convincing case can be made that in a world where the customer is king, this information is the most crucial for customers. It’s also important to note how these clothing companies are able to maintain the integrity of their intellectual property. Leading companies using NFTs to legally support their claims. The legality of a digital product is only as good as its legal support, according to a Wyoming attorney.
high net worth individuals are reached by luxury brands through NFTs
NFTs appear to be the hottest topic in the industry right now. Now, high-end fashion companies like LVMH can use these tokens to interact with consumers in a distinctive way, share their narrative, and demonstrate their core values.
It has been shown that 65% of customers are more willing to support a company that connects with them by employing a narrative behind the product than they are to just make a purchase in this day and age. Younger millennials and Gen Z consumers are strongly motivated by sustainable fashion and cosmetics.
NFTs enable premium businesses to provide customers with valuable, unrepeatable experiences, which will increase brand recognition, engagement, and boost sales.
An NFT is a fantastic approach to interact with target clients and develop a devoted following or clientele. It’s not simple to tilt toward the refined experience that luxury apparel buyers need, though.
Earlier this year, Jacob & Co. launched a new NFT and physical watch collection that takes full advantage of the metaverse. In April 2021, Jacob & Co. became the first luxury watch brand to launch a timepiece NFT, which fetched $100,000 at auction. Leading marketplace for luxury watches, Chrono24, offers extensive collection of Jacob & Co. watches as well several other premium NFT watch collection.
Fashion In The Metaverse
Although online games like Decentraland make an effort to provide a satisfactory user experience, it falls short. Players may buy fashionable NFTs on the decentralised and wearables market while using avatars in the game. And this doesn’t exactly spell luxury the way most customers would anticipate.
However, this is anticipated to change quickly as new businesses fight to improve and elevate NFT fashion. EverestCoin is one of these businesses. EverestCoin is a Play-to-Earn gamefi platform that is incorporating Mount Everest concepts into a brand-new metaverse fantasy realm. Shiba army and Bagcalls, two prominent cryptocurrency influencers, were drawn to the aura surrounding this ground-breaking coin.
In an interview, the Founder, and CEO of EverestCoin said “NFTs are the hot deals today and they’ll play an important role in the game we’re building on Metaverse. These new arts are a form of expression that ties into the whole DeFi ideology that birthed both the behemoth that the luxury fashion world and the crypto world are today.”
The Fashion NFT Marketplace
While smaller businesses have seized the initiative and engaged in the NFT trend with jolts of innovation, selling on NFT marketplaces like KnowOrigin and Open sea, a large number of luxury firms are still attempting to sort things out. In fact, boutique fashion businesses send me NFT pitches at least three times every week. Right now, the finest illustration of an NFT is when it is offered as the digital counterpart (twin) of a physical product.