NFTs are now available to more people than only blockchain aficionados and artists looking to fairly monetize their efforts. Celebrities, video game creators, realtors, and even financial professionals recognize NFT’s potential. The NFT market is currently estimated at $20.45 billion.
Non-fungibles are a fantastic tool for engaging clients and garnering media attention, thus fashion brands do not shy away from dipping their toes into the realm of NFT fashion. Several well-known fashion houses, like Gucci, Louis Vuitton, and Dolce & Gabbana, as well as fast-fashion businesses like Adidas and Forever 21, have already debuted their NFT collections. To do trading in NFT, the NFT marketplace is a necessary platform for any business. Many companies build NFT marketplaces from scratch and many offer White Label NFT Marketplace Development services.
This post will explain what your business can accomplish specifically with the use of NFTs and explore the real-world uses that consumers perceive for NFT clothing. We also won’t neglect to examine the ways in which various fashion companies make use of technology.
Key advantages of NFT adoption by fashion brands
Fashion always follows the latest trends, thus it’s not surprising to hear that companies have partnered with leading NFT collections or have launched their own tokens. But what motivations are behind the combination of NFTs and fashion? Is it only for the purpose of publicity? Let’s examine the primary causes.
- Cost Reduction
A lot of resources are required to produce a single piece of apparel, including materials, labour salaries, logistics, and marketing. Contrarily, virtual clothing requires less effort but yields a similar or even larger income.
The world was caught off guard by Backup Covid-19, which imprisoned people inside their houses. People who couldn’t go out reduced their purchases of new clothing, which led to a 43.5% fall in sales for the European garment sector in 2020. As a result, it makes sense for the sector to consider a backup plan in case something goes wrong again (hopefully not).
- Fresh marketing possibilities
Large communities of collectors and metaverse users are accessible thanks to NFTs. Once a brand is established in the Web3.0 realm, it can reach out to younger people and considerably grow its consumer base.
In addition, firms can sell sketches of collections, fashion films, and backstage images as NFTs to generate additional revenue from both the initial sale and royalties.
- Customer adherence
NFTs are a supplement that brands can add to their loyalty programs to boost customer engagement. Additionally, it is typical for fashion brands to provide physical things or invitations to actual or virtual events as unlocking content to their non-fungible tokens. People develop deep bonds with brands and greatly value these uncommon experiences.
How does NFT fashion address concerns about sustainability?
The way that clothing is made today is completely unsustainable. About one-third of the microplastics detected in the water are the result of the fashion sector, which also generates more emissions than international air travel and international shipping put together.
Some of the waste associated with fashion can be reduced once major firms focus some of their attention on creating virtual clothing.
But is NFT production entirely environmentally friendly? As we all know, producing a non-fungible token requires quite a bit of energy, but nowadays, more and more platforms are making efforts to reduce their carbon footprint by migrating to more environmentally friendly blockchains, like Solana and Cardano, or by purchasing carbon offsets.
Fashion NFTs confront difficulties
Despite having a long list of advantages, fashion NFTs still have a few drawbacks, including a lack of regulation and interoperability, high implementation costs, and the fact that NFT is still a specialized field of technology.
- Lack of interoperability: Different NFT wearables cannot yet be utilized across different platforms due to a lack of a common agreement or procedure.
- Lack of regulation: Because there is currently no legal framework for fashion NFTs, it is possible for freelance artists to transform well-known objects or brands into tokens without gaining permission from the copyright owner. Such a case involving Hermes Birkin bags already exists.
- High costs: You must make a large investment in employees and equipment in order to successfully incorporate non-fungible tokens to your business. This may provide a challenge for smaller businesses.
- Lack of interest: NFT is still a very new technology, and few people are familiar with its principles. Statistics show that in the US, 70.6% of individuals are unsure what an NFT is. As a result, only a small proportion of tech-savvy consumers can access fashion NFTs despite the enormous fanfare.
Which renowned brands utilize NFTs?
Nowadays, it is very challenging to think of a major NFT brand that hasn’t dabbled in the field of NFT fashion. A number of the biggest names in fashion, like Gucci, Karl Lagerfeld, Louis Vuitton, Burberry, and Prada, make NFT clothing.
Learn more about how these fashion companies use non-fungible tokens.
How is NFT used by Gucci?
Gucci was the first high-end fashion brand to introduce its own non-fungible token, and it did it independently and without working with any NFT collections that previously existed or with any well-known video games. Gucci may be regarded as the first NFT brand to combine fashion with NFTs as a result.
“Gucci Aria” is the name of a short fashion movie by Gucci NFT. The NFT was auctioned off and bought for $25,000 in the winning bid. UNICEF USA received the proceeds as a donation. In addition, Gucci has teamed with Offsetra, a provider of carbon offsets, to lessen the environmental effect associated with the production of NFTs.
After the initial release was a success, Gucci continued to explore the NFT space and unveiled a new line of adaptable digital collectibles in partnership with SUPERPLASTIC.
Additionally, buyers of NFTs from the SUPERGUCCI series received an exclusive sculpture made of white ceramic that is 8 inches tall and was meticulously handcrafted in Italy.
The renowned fashion business unveiled a new NFT initiative in the metaverse in March 2022. Gucci will release clothing accents that may be used in the 10KTF project’s virtual realm of New Tokyo. These are the company’s initial NFT wearables.
How does Burberry enter the NFT fashion industry?
With the help of Mythical Games, Burberry embarked on its NFT journey and debuted an NFT collection in their flagship title, Blankos Block Party. On a blockchain, there are virtual vinyl toys called Blankos.
Sharky B, a shark that can be acquired, improved, and traded in the game’s market, is Burberry NFT. Additionally, Sharky B can be taught a variety of skills, ensuring the toy’s novelty and individuality.
In-game NFT accessories from Burberry include a jetpack, armbands, and pool shoes. Any Blanko that the players own can use these things.
750 Burberry Blankos were gone in just 30 seconds of becoming available. A single Sharky B now costs at least $1,000 on the secondary market. Burberry is now among the largest NFT brands in the fashion sector as a result of all of this.
How to make fashion NFT investments
You’ve made the decision to launch your own NFT fashion line. But how exactly do you do it correctly? To answer the following questions, you need first decide on a budget and perform extensive research:
- How much are your consumers willing to pay for NFTs, and are they interested in them?
- What operating systems will your NFTs support?
- Which marketing tactic, such as wear-to-earn or influencers, will you employ?
- Where will the NFTs be listed when they are ready?
- Which method will you use to sell your NFTs—at an auction or for a set price?
- Will there be physical copies of the NFTs as well as virtual ones?
- Will your NFTs contain unlocked content?
You can determine the idea of launching NFTs in your specific situation by using the responses. The following stage is to assemble a skilled team of developers and advisors to guarantee that your line of fashionable non-fungibles is a success.
Also Read: How To Create An NFT Minting Website
The Last Wise Words
Fashion NFTs have shown to be quite effective at attracting media attention to brands and bringing in a steady stream of new clients. However, this is not the only factor contributing to the growth of fashion NFTs. Tokens also operate as a backup, create new marketing opportunities, increase client loyalty, and may even help to mitigate the environmental effects of rapid fashion.
Customers have the completely novel feeling of owning clothing or accessories to flaunt in virtual environments.
All of this prepares the way for NFT wearables to rank among the most popular technologies in the foreseeable future.