The fashion brands are inching closer to the NFTs (Non-fungible tokens) as they see a world full of possibilities revolving around them. Each new day you will come across unbelievable stories on NFTs record sales that deal with millions of dollars. These stories prove that the fashion industry is poised to join the NFT party, steadily yet strategically. Also, from Pokemon Go to Blockchain, it is inevitable that the different brands flock towards the buzzworthy fashion trends and explore new marketing opportunities.
But you might wonder how will NFT in fashion benefit the creative minds? Well, in today’s digital world, fashion isn’t just a utility. It represents a sense of self-expression and helps people to create a unique status or identity in the world. And with ample fashion lovers seeking different doors to signal these features in their physical and digital lives, it has created endless possibilities for the creative minds in the fashion industry to go virtual.
So, before we dive into this topic, let us clear a few basics about what actually NFT is? And later, we will see how it works for the fashion industry?
What does NFT mean?
In short, NFT is a digital asset in the form of an image, a video, or an audio file that’s unique and cannot be copied because the blockchain tracks its digital ownership. It’s a cryptographic token, but unlike other crypto currencies, NFTs are not mutually interchangeable. Hence, they are called Non-fungible tokens.
People can create an NFT for their digital art by uploading the file on the NFT auction market like Rarible, KnownOrigin, or OpenSea. After uploading the file, the system creates a hash of the file that’s been recorded as an NFT on the blockchain, which can be purchased with crypto currency and resold.
For instance, if you download an image from the internet to your smartphone, then you are getting the reproduced copy of that image. But owning the NFT of that image is like you are getting the original file of that image along with the ownership.
How will NFTs work in the fashion industry?
Luxury fashion brands have been making enough sales through runway shows, and now, the NFTs have created many opportunities for them. These brands can create GIFs or 3D clothing and share it on their social media to enable new customers. Fashion influencers or famous personalities can be a part of this 3D clothing league and get ownership of a particular clothing item by purchasing its NFT. But the downside is that buyers can’t do anything except admiring those GIFs and showing them off on their social media channels.
Additionally, fashion brands can also create 3D clothing for avatars in games and sell their NFTs to different users. People can add their images into these digital fashion clothes and show them off by wearing them in popular games.
But the current fashion NFT user experience isn’t able to deliver the polish feel expected by luxury fashion buyers. And until now, these possibilities have remained hypothetical. It seems that the brands still need a little push to take the best advantage of NFT in the fashion industry.
What do famous fashion brands say about NFTs in the fashion industry?
A recent report made by Gucci to Vogue Business stated that it’s only a matter of time before the brand releases its NFT. Besides, Vogue Business has also stated that many luxurious fashion brands are close enough to launch NFTs with diverse industry sources.
Additionally, Marjorie Hernandez, founder of the fashion brand’s blockchain network called Lukso, said that the question is who’ll first get the trigger off of this innovation. That’s because most luxury brands are focusing on eCommerce trends while such emerging technology is ready to offer its benefits.
How is NFT augmenting the exclusivity of luxury fashion brands?
Experts from cryptocurrency firm Ledger believe that NFTs have clear applications in the luxury fashion industry. The creators of high-end items project their high price tags on valuable materials and attention to detail craftsmanship. But these traits are just a part of an item’s value.
Roger, who works for Ledger, said that “Luxury is a business of building identity.” He added, “You don’t purchase a luxury handbag due to its incredible utility. You purchase it because the brand has developed culture, and you want to be a part of that culture.”
Exclusivity plays a key role in promoting a luxury item’s value, and that’s when the NFTs can come bouncing in to augment its importance. In NFT, a digital asset can be duplicated, but the private key that holds its ownership is always unique. This feature leads to a condition for scarcity, which is essential to recognize the value of luxury items.
Will people really invest in NFT w.r.t fashion?
Beyond all the hype that’s going around about NFTs in the fashion industry, the question that still remains to be answered is whether people will spend on NFTs to get high-end fashion? Well, some skeptical fashion brands are already feeling that NFT is a bubble that’s waiting to burst.
On the other hand, most people don’t purchase cheaper counterfeits than genuine items because the fake items are rarely of the same quality. But there isn’t any clear indication, especially in the fashion industry, on how much people need to shell out for any digital item’s NFT even after they get an exact digital copy of it.
While speaking about how pricing virtual goods will work, Gucci’s Robert Triefus said that ‘“It’s a world that still has to be understood. For us, at the moment, we are looking at experiments and pilots where values are attached to specific experiences or digital products so that we can understand what the value system is.”
Dressing non-physically in the best outfits can sometimes appear to be challenging, especially for those who aren’t much engaged in the fashion space. But considering the rising popularity of online personalities and fashion influencers, marketing physical attire with NFTs on digital channels like Instagram, TikTok, or Snapchat can take it to the next level. It can also create different opportunities for popular fashion designers that are trying to make a mark in the industry.