The principles that govern the luxury fashion industry are no different than other business sectors. Modifications are sufficiently important and complex that the luxury fashion and beauty industry have developed detailed documents to better comprehend the competitive marketplace. Make no bones about it, the raving flames of NFTs have given the fashion world a burning desire for blockchain technology. In this feature, my aim is to show you what luxury fashion is doing with this crypto tech, and what to expect as fashion forges ahead into a tech-savvy future.
Firstly, NFT is an acronym for Non-fungible tokens, a cryptographic asset created through blockchain technology. It allows for the exchange of value through a medium that cannot be replicated. NFT is not the new kid on the block, rather, the digital collectible dates back as far back as 2012. More to the point, this digital asset didn’t make a name for itself until 2017, with Crypto Kitties – a digital asset that could be raised like a cat, which was later traded for as much as $140,000.
NFT in Fashion: How it all began:
In recent years, the fashion and beauty industries have gone to great effort to encourage an accurate and unbiased understanding of business modifications to reinforce new terms consistent with the modification in business today. The birth of NFTs proved to be fashion’s only hope of getting back on the fast-paced tech train, as it missed its opportunity with E-commerce by far. When e-commerce first arrived on the scene, I remember an abundant number of brands completely uninterested in moving forward with the new platform at the time. The fashion business has since become much more cautious. This year alone, Gucci introduced product offerings such as one of a kind sneakers as an NFT. Even luxury watch brands are promoting NFT auctions within the available platforms to promote on social. This is NFT 2.0 and there is no end in sight.
In March 2019, an ingenious concept was born into the raving vibe of blockchain technology as it makes its way through major industries such as the Arts & Entertainment industry. The item was the brainchild of a 3 brand community, Dapper Labs, digital couture house, and Johanna Jaskowska, iridescence is a digital outfit that was eventually sold on blockchain for US $9,500, then in May that same year, top luxury brand LVMH Moët Hennessy Louis Vuitton, owner of some of the world’s biggest fashion brands such as Fendi, Dior, and Givenchy, became the very first company to leverage blockchain-based tokens as a means of ensuring an item’s authenticity.
Joining forces with Microsoft and Consensys (blockchain software company), the Aura platform was established. It is a blockchain system that allows consumers to track the origins and lifecycle of their purchases. Having researched this topic at the Fashion Institute of Technology, a strong argument can be made that this knowledge is considered the most important to consumers in a customer-centric world. Another thing worth mentioning is how these fashion brands are able to protect the integrity of their intellectual property. Top brands leveraging NFTs back up their designs legally. In the words of Wyoming Attorney “The legitimacy of a digital product is as good as its legal backing.
“If having health, home and car legally backed seems obvious, then you should have your other assets as well…that includes NFTS!”
How luxury brands use NFTs to reach high net worth individuals. In today’s marketplace, NFTs seem to be the talk of the town. Luxury fashion brands like LVMH can now use these tokens to connect with customers in a unique way, tell their story and reflect their values. Customers in this age and time won’t just make a purchase, but rather it has been discovered that 65% of customers are more likely to patronize a brand that connects with them, using a story behind the product. Sustainable fashion and beauty is a strong-driver concerning younger millennials and Gen Z market groups. NFTs make it possible for luxury brands to create priceless, irreplicable experiences for customers which will, in turn, improve brand awareness, engagement and boost sales.
An NFT is a great way to connect with ideal customers and create a loyal fan base or buyers. However, getting inclined to the polished experience luxury fashion shoppers expect is no easy task. Although virtual games like Decentraland attempt to create a suitable user experience, it doesn’t exactly hit the spot. In the game, players use avatars and can purchase fashion NFTs on the decentraland wearables market. And this doesn’t exactly spell Luxury as most shoppers expect.
Nonetheless, this is expected to change soon as emerging companies compete to make NFT fashion better and more desirable. One of such companies is EverestCoin. EverestCoin is a Play-to-Earn gamefi platform that is bringing ideas from Mount Everest into a whole new world of fantasy on the metaverse. The vibe around this trailblazing coin got the attention of crypto influencers like Shiba army and Bagcalls.
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:
An abundant number of luxury brands are still trying to figure things out, while smaller brands have taken the bull by the horns and indulged into the NFT trend with jolts of creativity, selling on NFT marketplaces such as KnowOrigin and Open sea. In fact, at least three times a week I receive NFT pitches from boutique fashion brands. Currently, the best example of an NFT is when it is sold as a twin (digital product) of a physical one. “The winning bidders will receive the corresponding real-life dresses, and both the NFTs and the physical garments are one-of-a-kind”, says Clothia CEO Elena Silenok.
“NFTs and interest in digital artwork is completely to the luxury fashion industry’s advantage,” another comment made by digital designer Nicole Zisman
“Right now, fashion being sold via NFT is fashion as art, and not necessarily fashion as a utility,” says Cathy Hackl, CEO of Futures Intelligence Group
Speaking of art, many agree that the uniqueness of NFTs is how they’re able to blend quality art with technology. One NFT artist worthy of mention is Michael Osei-Wusu,*Indigo Suave*. A student of film and visual arts at Princeton. Suave founded a production company, ASUAVEPRODUCTIONI in his sophomore year. With loads of visual projects that have done well, Suave is currently working on another planned to come out this September. Over the past few months Suave has been able to create highly successful videos on YouTube “Doge-1: A New Hope ”. It depicts a Shiba dog traveling through space in an attempt to get to the moon. Suave draws this visual to a higher purpose of what dogecoin is about – hope. In other words financial liberty. The artist draws a comparison between being financially stable and being hopeful.