NFTs In Fashion: How Brands Can Capitalize On This Emerging Trend
February 1, 2023
Non-fungible tokens, or NFTs, have gained a lot of traction in the fashion industry in the last two years. NFTs are unique digital assets that are stored on a blockchain, the technology behind cryptocurrencies.
They can represent any kind of digital asset, from digital art to virtual real estate and even virtual clothing. NFTs are one-of-a-kind and can't be copied or replaced, unlike fungible tokens like cryptocurrencies.
In the fashion industry, NFTs are being used in a variety of ways to create new revenue streams, enhance brand visibility, and engage customers in new and exciting ways. In this article, we are going to explore how fashion brands can capitalize on the emerging trend of NFTs.
NFTs can be a powerful tool for the fashion industry
1. Increase engagement for your fashion brand in the virtual world
By offering virtual fashion and accessories for digital avatars, brands can engage customers in a new and exciting way. Virtual clothing and accessories can be used by customers in virtual worlds, social media platforms, and even video games, allowing them to express their individuality and personal style. This can lead to increased brand loyalty and repeat customers.
2. New revenue stream through sales of digital assets
Fashion NFTs open up new revenue streams for fashion businesses as it allows them to tap into the digital world and reach a wider audience. This includes digital twins of clothing, shoes, bags, and other accessories, hosting virtual experiences such as metaverse fashion shows, virtual stores, digital fashion events, and much more.
Since NFTs are unique and one-of-a-kind, they can also make fashion NFTs seem more valuable and create a sense of exclusivity. This makes digital assets more desirable and valuable, which can lead to more sales.
3. Increased brand visibility
Launching a fashion NFT collection can create buzz and interest in the brand and its products, leading to more exposure and awareness, which can ultimately enhance the brand's reputation. NFT technology can be used to create digital collections, such as NFT fashion sketches or virtual fashion experiences, that showcase the brand's creativity and artistic vision. By creating these virtual experiences and events, brands can increase their visibility and reputation.
4. Increased exclusivity and rarity for limited-edition items
By launching these limited-edition fashion NFT projects, fashion brands can increase the perceived value of the brand and create a sense of exclusivity and rarity. This can make NFT buyers want and value these items more, which can lead to more sales and customer loyalty.
By using NFTs to make limited-edition items, brands can also create a sense of scarcity, which can make the brand seem more valuable in the fashion world and make customers feel like they need to buy the items right away.
How can brands capitalize on fashion NFTs?
There are several ways for fashion brands to capitalize on the emerging NFT trend in the fashion industry.
Virtual clothing and accessories for digital avatars
Fashion brands can design virtual clothing and accessories that can be worn as wearable NFT in virtual worlds, social media platforms, and even video games. This allows NFT holders to express their individuality and personal style, which can lead to increased brand loyalty and repeat purchases.
Digital twins for your physical fashion products
Brands can create digital twins of their physical products, such as clothing, shoes, bags, and other accessories. This digital merchandise can be sold as NFTs on NFT marketplaces, giving holders the ability to own a digital version of the product, which they can display in virtual worlds or use as an avatar accessory. By creating digital twins, brands can also create a sense of rarity and exclusivity, making the products more desirable and valuable.
Virtual stores in the metaverse
Fashion companies can open stores in digital worlds such as Decentraland, Sandbox Space, etc., where customers can browse and purchase virtual clothing and accessories. These virtual stores can also be used for selling digital goods, hosting virtual fashion shows, virtual pop-up shops, virtual clothing collaborations, and other fashion-related events. By making a virtual presence, brands can increase their visibility and reputation and connect with customers in a new and exciting way.
Launch virtual fashion shows
Brands can launch virtual fashion shows that can be streamed live or recorded and shared on social media platforms. These virtual fashion shows can be used to showcase new collections, collaborate with other brands, and engage customers in a new and exciting way.
Read more: Marketing opportunities in the Metaverse
Collaborate with artists and other brands
Brands can collaborate with artists, designers, influencers, and other brands in various ways to expand their reach and tap into new audiences. Some ways to do this include:
- Commissioning artists and designers to create one-of-a-kind digital artworks or designs for sale as NFTs.
- Partnering with other brands to create limited-edition NFT collections
- Working with influencers to produce exclusive NFT drops or virtual events
- Hosting virtual collaborations and events with other brands, artists, and designers
- Partnering with virtual world platforms and communities to create exclusive NFT experiences or in-world events
- Producing virtual fashion shows and events in collaboration with other brands and designers.
- Developing co-branded NFT collections for sale on various marketplaces and platforms.
By collaborating with other brands, artists, and designers, fashion brands can not only increase the perceived value of their brand and products, but also tap into new audiences, gain new insights and ideas, and stay relevant in the ever-evolving fashion world.
How are NFTs changing the landscape of the fashion industry?
1. Metaverse Fashion Week: Decentraland
The inaugural Metaverse Fashion Week, hosted within Decentraland, was a clear indication of the fashion industry's interest in the metaverse. The NFT fashion show saw over 60 fashion brands showcasing more than 500 looks, including luxury brands such as Tommy Hilfiger, Dolce & Gabbana, and Karl Lagerfeld.
These brands participated in branded catwalks, showcasing collaborations with famous digital designers. Not only was the event a spectacle for visitors to enjoy, but it was also completely free. Visitors could buy NFTs of the fashion brands using the platform’s native decentralized cryptocurrency, MANA, through their digital wallets.
Metaverse Fashion Week showed that virtual fashion shows could be a big way for fashion brands and the metaverse as a whole to make money.
2. Cryptokicks by Nike
Nike, the world-renowned sportswear brand, revealed its first digital metaverse sneakers, the Ethereum NFT-based RTFKT x Nike Dunk Genesis CryptoKicks. These digital wearable items are designed for use in metaverse worlds and can be opened through RTFKT's MNLTH Ethereum NFTs.
The RTFKT x Nike Dunk Genesis CryptoKicks were airdropped for free to holders of RTFKT's valuable CloneX pfp NFTs and other earlier RTFKT NFTs. This move by Nike is a clear indication of the brand's interest in the metaverse and its potential for the fashion industry. The release of these NFT sneakers is a sign that more and more brands are trying out NFTs to give their customers unique and exclusive experiences.
3. Balmain x Barbie NFTs
The collaboration between fashion house Balmain and iconic toy brand Barbie has resulted in a unique collection that combines physical fashion items and limited-edition NFTs. The partnership includes a line of ready-to-wear clothes, a line of accessories, and a limited run of NFTs with Barbie and Ken.
The physical collection includes 50 pieces of clothing and accessories, as well as miniature versions of Balmain's signature handbags and playful packaging inspired by the iconic Barbie doll. The NFTs give collectors a chance to own a piece of the collaboration and possibly get into exclusive events. This makes the already limited collection even more exclusive.
4. Timecapsule NFT Collection by Prada
The Timecapsule NFT Collection by Prada is a highly exclusive and sought-after collection of limited-edition fashion items. The collection comes out once a month, on the first Thursday of each month, and only a small number of items are available to buy for 24 hours.
Each item in the collection comes with its own unique serial number and is packaged in custom packaging, making it a truly one-of-a-kind piece. People who buy Timecapsule NFTs can go to special events like Prada Extends and Prada Mode, and they can also get invitations to other special events.
Moreover, buyers from the initial six drops have the opportunity to attend Prada Extends Miami, making it a truly unique and memorable experience. Overall, the Timecapsule NFT Collection by Prada offers an exclusive experience and the chance to own a rare, collectible item that will be treasured for years to come.
5. Hublot NFTs
The Swiss luxury watch brand Hublot teamed up with renowned Japanese artist Takashi Murakami to create two limited-edition NFTs. The NFTs feature the iconic smiling flower, a signature theme in Murakami's work and his Superflat artistic movement.
The first NFT, based on the All Black version, is a limited edition of 216, and the second, which recreates the colors of the exclusive Sapphire Rainbow version, is a limited edition of 108. These NFTs are inspired by the two watches, the Classic Fusion Takashi Murakami All Black and the Classic Fusion Takashi Murakami Sapphire Rainbow, that Hublot and Murakami launched jointly in 2021. The physical watches were sold out in just a few days, and these NFTs are expected to be highly sought after by collectors as well.
Marketing fashion brands in the digital space
The use of NFTs in the fashion industry is still in its early stages, and there is a lot of potential for innovation and growth. As the technology and infrastructure for NFTs continue to evolve, we can expect to see more brands experimenting with NFTs and creating new and exciting ways to use them.
As the fashion world continues to evolve, brands that are able to stay ahead of the curve and innovate will be well-positioned to thrive. We encourage fashion brands to try out NFTs and see what they can do to create new revenue streams, improve brand visibility and reputation, and connect with customers in new and exciting ways.