A recent report by Centra, a fashion/lifestyle commerce platform, reveals that a substantial number of young consumers in the UK have purchased fashion NFTs. The survey, titled ‘How your brand can capture its full potential globally,’ encompassed 2,000 UK shoppers and found that 20% of Millennials and Gen Z-ers have invested in Non Fungible Token (NFT) fashion items. In contrast, only 9% of shoppers from all age groups have made a fashion purchase in the metaverse.
The study also sheds light on the motivations behind these purchases. For 38% of fashion NFT buyers, the main driver was the perception of it as an investment opportunity. Among Gen Z shoppers, this figure rose to 46%. Furthermore, 31% of respondents were captivated by the novelty of owning a digital asset, and 28% were enticed by the concept of owning something in a virtual world. However, it’s worth noting that 34% expressed a preference for physical fashion garments and showed no interest in owning fashion digitally.
The desire to dress digital avatars emerged as another key motive for purchasing NFTs. Among Gen Z shoppers, 31% stated that they wanted to dress their digital avatars, while 23% aimed to maintain a similar level of fashion on both their virtual and real-life selves. Additionally, 39% of UK shoppers anticipated that digital avatars would become the norm within the next two years, while 44% predicted it would take five years.
Despite the increasing popularity of fashion NFTs, doubts still surround their long-term viability among UK shoppers. Approximately 29% viewed NFTs as a passing fad, and 25% expressed distrust towards them. Another 24% believed that fashion brands were merely using NFTs as a gimmick to boost sales.
Martin Jensen, CEO and co-founder of Centra, acknowledged the dynamic nature of the metaverse and its impact on retail. He recognized that the metaverse is still evolving and presenting challenges for retailers and brands as they navigate the opportunities it offers. Nevertheless, Jensen emphasized that the metaverse is already a reality for consumers, who are displaying strong demand and adoption when it comes to owning fashion digitally.
The findings of this report underline the growing influence of Millennials and Gen Z-ers in propelling the metaverse fashion trend. As digital experiences and virtual worlds become increasingly integrated into our everyday lives, the fashion industry must adapt to meet the demands of these tech-savvy consumers. Despite the skepticism and uncertainty surrounding fashion NFTs, it is evident that there is a significant market for digital fashion assets. Therefore, brands should consider how to tap into this emerging trend.
Links:
– Vogue Business
– CB Insights
