Major luxury brands view NFTs as critical aspects of their business ventures.
Luxury brands like Gucci and Tiffany & Co. have continued to embrace NFTs despite the ongoing crypto winter. But as price floors continue to fall, how long will it be until they throw in the towel?
The Christmas season is almost here. That Mariah Carey song is already playing on repeat and people are out shopping for gifts. Decorations are starting to grace malls and stores. This also means that 2023 is right around the corner.
It seems that every year, the adoption of digital goods and services has increased in various industries.
Luxury brands have certainly benefited from this transition. The world’s leading brands are incorporating technologies to recreate brand images and reinvent the consumer experience. The fashion industry, in particular, is undergoing a historic transformation thanks to emerging technologies such as Blockchain and non-fungible tokens (NFTs).
In this article, we seek to explore the digital fashion trend incorporated by luxury brands, thanks to the omnipresence of NFT collectibles.
One question that comes up time and time again is, will this trend of buying products in the digital world really outperform the physical world model?
NFT and Luxury Fashion: The Combo
Many brands have developed digital strategies in the wake of the COVID-19 pandemic. With immense potential and what seems like limitless possibilities for the future of fashion, NFTs have caught the eye of luxury fashion moguls.
NFTs have changed the way brands and their respective customers interact with each other. Furthermore, the non-expendable aspect even allowed brands to innovate their revenue models, using royalties and second-hand markets.
Another aspect of this ‘conscious’ coupling also helped brands cut costs. Platforms like Twitter and Discord have become new marketing channels, engaging communities at low cost; They have also created new ways for customers to communicate and interact with each other.
Entry List
Data collected in December 2021 for the Vogue Business Index showed that 17 percent of brands in the Index were already working with NFTs. This number increased in 2022 as more luxury brands jumped on the NFT bandwagon, and began to experiment with this new medium.
Gucci, the iconic fashion powerhouse, has been around since 1921. Known for its high-end, luxurious designs and quality craftsmanship, and now for its NFTs.
In collaboration with the brand’s luxury creative director Alessandro Michele and digital artisan Wagmi-san, the 10KTF Gucci Grail collection came to life in Q1 2022.
In May this year, Dolce & Gabbana and Polygon-based Metaverse fashion company UNXD partnered with Chainlink for the reveal of the DGFamily Glass Box.
Moncler recently integrated Arianee’s NFT and web-based custodial wallet solution into its ecosystem to offer a seamless experience to its most engaged consumers.
The list goes on and on. However, as 2022 is drawing to a close, we are witnessing a significant drop in cryptocurrency prices. This, in turn, has had a huge impact on NFT sales.
By Audy Castaneda
