Luxury brands are increasingly turning to NFTs (Non-Fungible Tokens) as a means of offering new experiences to their customers. NFTs provide a guarantee of traceability and serve as a vector of engagement. In the luxury sector, where traceability and experience are of utmost importance, the question arises: Could NFTs be the future of fashion?
To understand what NFTs are, they are unique digital tokens that are assigned to valuable objects or works of art. These tokens verify the rarity and authenticity of the item. Fashion and luxury players, who often face counterfeiting issues, have recognized the significance of NFTs and have already started embracing this trend. For instance, during Paris Fashion Week, the Fédération de la haute couture et de la mode collaborated with blockchain expert Arianee to provide accredited members with an NFT featuring a unique digital artwork. This artwork could be shared on social networks and represented in augmented reality. Additionally, the house of Karl Lagerfeld launched a collection of digital creations in the form of NFTs to commemorate the late fashion designer’s anniversary.
One of the key benefits of NFTs is their ability to guarantee transparency. By linking a physical product to a virtual key, the authenticity and lasting value of the product are ensured. Pierre Nicolas Hurstel, CEO and co-founder of Arianee, explains that this record associated with the product proves ownership, traces its history, and provides transparency regarding the materials used in its production. In an industry where the resale market is expanding, transparency builds trust between the seller and the second-hand buyer.
NFTs also serve as vectors of engagement. They allow physical products to be projected into the virtual world, requiring brands to consider the garment not only in terms of its physical elements but also the experience surrounding its ownership. This can be achieved through augmented reality and/or the gaming industry. Additionally, NFTs can be obtained through experiences such as visiting a pop-up store. Hurstel suggests that NFTs can be seen as a new form of engagement, similar to a high-value cookie. Brands can use the information about the tokens owned by their customers to create loyalty strategies. For example, customers who obtained a token through a previous purchase may receive priority access to future drops. The ownership of multiple digital items from the same brand may result in personalized products, such as a sneaker or hoodie with elements printed from the customer’s digital objects. Ultimately, the goal is to create a community and foster future engagement with the brand.
Overall, NFTs present promising possibilities for the luxury fashion industry, offering traceability, transparency, and enhanced engagement. As brands continue to explore this space, the future of fashion may indeed be intertwined with NFT technology.
Useful Links:
1. Business of Fashion – Why Luxury Brands Should Pay Attention to NFTs
2. Vogue Business – Opinion: Why Luxury Brands are Adopting NFTs and Why They Should Be Cautious
