The Intersection Between Fashion and NFTs

The intersection between NFTs and fashion explained

Non-fungible tokens (NFTs) are mainstream collectibles in the cryptocurrency world and their impact extends far beyond the financial sector. While most current examples of NFTs are limited to finance and gaming, they have potential applications in virtually every other industry as well. There’s no better example than fashion.

Fashion brands have entered the metaverse through NFTs, catering to a new breed of consumers. A fashion NFT is a tokenized wearable item, such as clothes, accessories, and shoes, which can be used in the metaverse or the virtual world. Let’s take a look at how NFTs and fashion intersect and the disruption brewing in the fashion industry.

What fashion brands have entered the NFT space?

Nike announced its purchase of RTFKT in Q4 of 2021, its first venture into virtual sneakers. RTFKT is engaged in digitally designing training shoes and other NFT collectibles. 

In the luxury industry, Dolce & Gabbana and Jimmy Choo hit the New York Fashion Week in 2021 with their first NFT collection. D&G launched Collezione Genesi by creating 5 physical clothes while its collaborator UNXD created virtual reiterations for the metaverse. There are 4 other pieces, which were of purely digital form.

Meanwhile, Gucci and SUPERPLASTIC partnered to create SUPERGUCCI, an ultra-limited collection of a handcrafted porcelain figure in ten different scenarios.

Blockchain disrupting the fashion space

Dealing with counterfeits

One of the biggest problems facing the fashion industry today is counterfeiting, with over $450 billion in fake goods being produced each year. The Harvard Business Review reported in 2019 that up to 70% of the $4.5 trillion total global trade consists of counterfeit luxury items.

Blockchain technology is giving brands new ways to fight counterfeiters by leveraging the benefits of NFTs. NFTs allow users to check for authenticity because it is open source and it keeps a record of data. Once data is stored on the block, it cannot be altered and manipulated.

Bringing fashion and gaming together

Dolce & Gabana launched fashion NFTs on the Polygon network, which allows gamers to buy garments and be able to use the items across a number of other games, such as in Decentraland.

Louis Vuitton partnered with the popular mobile game Mobile Legends in 2019 for in-game skins. However, their products only exist within the Mobile Legends game.

Digitizing fashion shows

Blueberry Entertainment launched the Metaverse Fashion Week on February 14 in the Second Life Metaverse virtual world. The digital wearables collection show was attended by 40,000 people.

These kinds of fashion NFTs provide people with property rights to the items, which also drives the value of the NFTs. A Metaverse Fashion Week, to be launched by Selfridges, will also be held on March 23 to showcase both NFTs and digital fashion.

Innovating rewards and loyalty systems

NFTs can have a unique ID, which is identified by a user or a customer. Sending rewards can be as easy as sending USDT to your app. 

Knowing what a customer bought will also allow you to provide rewards more suitable to that customer.

The future of NFT fashion

Fashion, whether it’s fast fashion or haute couture, is long tied to the physicality of its products. The drive for NFTs in the fashion scene can pave the way to innovation, including anti-fraud initiatives. The technology behind NFTs will allow designers and manufacturers to digitize their items and monetize their work in order to operate on a global scale. It also allows consumers to trace back the items and prove a product’s authenticity. With the rise of fashion NFTs, fashion shows in the metaverse have become a reality and digital shopping experience using augmented reality (AR) is now also made possible.

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