NFTs in fashion industry: How brands can capitalize on this emerging trend.
Fashion NFTs can take many forms, including virtual garments that customers can wear within virtual environments, digital content with which owners can interact, and even digital twins of physical creations.
NFTs have gained a lot of traction in the fashion industry in the last two years. NFTs are unique digital assets that are stored on a blockchain, the technology behind cryptocurrencies.
They can represent any kind of digital asset, from digital art to virtual real estate and even virtual clothing. NFTs are one-of-a-kind and can’t be copied or replaced, unlike fungible tokens like cryptocurrencies.
In the fashion industry, NFTs are being used in a variety of ways to create new revenue streams, enhance brand visibility, and engage customers in new and exciting ways. In this article, we are going to explore how fashion brands can capitalize on the emerging trend of NFTs.
NFTs can be a powerful tool for the fashion industry.
1. Increase engagement for your fashion brand in the virtual world
By offering virtual fashion and accessories for digital avatars, brands can engage customers in a new and exciting way. Virtual clothing and accessories can be used by customers in virtual worlds, social media platforms, and even video games, allowing them to express their individuality and personal style. This can lead to increased brand loyalty and repeat customers.
2. New revenue stream through sales of digital assets
Fashion NFTs open up new revenue streams for fashion businesses as it allows them to tap into the digital world and reach a wider audience. This includes digital twins of clothing, shoes, bags, and other accessories, hosting virtual experiences such as metaverse fashion shows, virtual stores, digital fashion events, and much more.
Since NFTs are unique and one-of-a-kind, they can also make fashion NFTs seem more valuable and create a sense of exclusivity. This makes digital assets more desirable and valuable, which can lead to more sales.
3. Increased brand visibility
Launching a fashion NFT collection can create buzz and interest in the brand and its products, leading to more exposure and awareness, which can ultimately enhance the brand’s reputation. NFT technology can be used to create digital collections, such as NFT fashion sketches or virtual fashion experiences, that showcase the brand’s creativity and artistic vision. By creating these virtual experiences and events, brands can increase their visibility and reputation.
4. Increased exclusivity and rarity for limited-edition items
By launching these limited-edition fashion NFT projects, fashion brands can increase the perceived value of the brand and create a sense of exclusivity and rarity. This can make NFT buyers want and value these items more, which can lead to more sales and customer loyalty. By using NFTs to make limited-edition items, brands can also create a sense of scarcity, which can make the brand seem more valuable in the fashion world and make customers feel like they need to buy the items right away.
What is an NFT in fashion?
Fashion NFTs can take many forms, including virtual garments that customers can wear within virtual environments, digital content with which owners can interact, and even digital twins of physical creations. Since then, a growing number of brands, including Louis Vuitton, Burberry, Nars, Levi’s, Clinique, Dolce & Gabbana, Gap, and Adidas, have launched a wide range of NFT projects. Balmain has released at least four NFT projects and is still working on more. Now, not a week goes by without a new fashion brand announcing its foray into the world of NFTs.
How can brands capitalize on fashion NFTs?
There are several ways for fashion brands to capitalize on the emerging NFT trend in the fashion industry.
Virtual clothing and accessories for digital avatars.
Fashion brands can design virtual clothing and accessories that can be worn as wearable NFT in virtual worlds, social media platforms, and even video games. This allows NFT holders to express their individuality and personal style, which can lead to increased brand loyalty and repeat purchases.
Digital twins for your physical fashion products.
Brands can create digital twins of their physical products, such as clothing, shoes, bags, and other accessories. This digital merchandise can be sold as NFTs on NFT marketplaces, giving holders the ability to own a digital version of the product, which they can display in virtual worlds or use as an avatar accessory. By creating digital twins, brands can also create a sense of rarity and exclusivity, making the products more desirable and valuable.
Virtual stores in the metaverse.
Fashion companies can open stores in digital worlds such as Decentraland, Sandbox Space, etc., where customers can browse and purchase virtual clothing and accessories. These virtual stores can also be used for selling digital goods, hosting virtual fashion shows, virtual pop-up shops, virtual clothing collaborations, and other fashion-related events. By making a virtual presence, brands can increase their visibility and reputation and connect with customers in a new and exciting way.
Launch virtual fashion shows.
Brands can launch virtual fashion shows that can be streamed live or recorded and shared on social media platforms. These virtual fashion shows can be used to showcase new collections, collaborate with other brands, and engage customers in a new and exciting way.
Collaborate with artists and other brands.
By collaborating with other brands, artists, and designers, fashion brands can not only increase the perceived value of their brand and products, but also tap into new audiences, gain new insights and ideas, and stay relevant in the ever-evolving fashion world.
The Fabricant & DressX
Digital fashion collection created by Google in collaboration with The Fabricant and DressX.
The Fabricant’s iridescent dress, which sold for the equivalent of $9,500 in May 2019, was the first recorded sale of a fashion NFT.
Nike & RTFKT
Nike and RTFKT released the Nike Dunk Genesis Cryptokicks, a collection of 20,000 NFT sneakers that owners can see in real life via a Snapchat filter. These digital wearable items are designed for use in metaverse worlds and can be opened through RTFKT’s MNLTH Ethereum NFTs.
The RTFKT x Nike Dunk Genesis CryptoKicks were airdropped for free to holders of RTFKT’s valuable CloneX PFP NFTs and other earlier RTFKT NFTs. This move by Nike is a clear indication of the brand’s interest in the metaverse and its potential for the fashion industry. The release of these NFT sneakers is a sign that more and more brands are trying out NFTs to give their customers unique and exclusive experiences.
Moreover, Nike aims to step up its efforts with the launch of the platform, .Swoosh.
The .Swoosh platform is billed as the epicenter for Nike’s digital efforts around Web3. It’s designed to spotlight the brand’s NFTs and virtual apparel initiatives, including future ways for customers to become co-creators and share in digital product royalties.
Nike uses the platform as a hub to launch virtual apparel like t-shirts and sneakers for avatars that can be used within Web3 games. It also utilizes Web3 tech to allow users to unlock real-world benefits, such as exclusive physical apparel or chats with pro athletes.
Ralph Lauren
Ralph Lauren is synonymous with American fashion. As such, the news that they were expanding into the digital world was big news among the metaverse brands. Ralph Lauren’s metaverse offerings are designed exclusively on the Roblox platform and come with themed events. For example, the Ralph Lauren Winter Escape experience lets users enjoy winter-themed activities. This included toasting marshmallows, drinking coffee and ice skating in a wintery wonderland. Meanwhile, users can browse the Ralph Lauren Digital Collection for a chance to enjoy some vintage fashion based on trends from the 1990s.
In 2021 the company also collaborated with the avatar simulation app Zepeto. The Ralph Lauren x ZEPETO partnership consisted of a digital apparel collection and a thematic virtual world. Ralph Lauren apparel was reimagined for the digital world of ZEPETO, allowing users to wardrobe their 3D avatars with exclusive products. The world of Ralph Lauren was brought to life through 3 distinct digital, interactive spaces that celebrate the iconic spirit, energy and attitude of the brand, including the Madison Avenue Flagship Store, Ralph’s Coffee Shop and Central Park — all in New York City.
Adidas
Adidas made these NFTs in partnership with Bored Ape Yacht Club, Punks Comics, and GMoney. Titled “Into the Metaverse”, the collection comprises virtual wearables that buyers can use in online platforms, but also the physical clothing to match. Adidas sold out 30.000 NFTs to its loyal fans and brand enthusiasts.
The exclusive access to physical streetwear drops and apparel products were released to NFT owners in phases. Throughout a total of 3 phases in 2022, also known as product redemption periods, the Adidas NFT owners had guaranteed access to claim exclusive physical products at no additional cost beyond their original NFT purchase. Items available include a graphic hoodie and a beanie, all co-created with brands like Bored Ape Yacht Club, Punks Comics and crypto consultant GMoney.
To level up to the next phase or claim a product, NFT holders go to the “Into the Metaverse” website, connect their crypto wallet to verify ownership and phase level and will be able to then access the items. As they move from one phase to the next, their NFT will also automatically change color, signifying their standing in the overall process.
To ease its transition into the metaverse and its at-times cliquish communities, Adidas purchased a Bored Ape named Indigo Hertz for the company to use as a mascot and even outfitted it with a custom tracksuit, which will be released as part of their physical Product Drop Strategy.
Burberry
Burberry has partnered with Mythical Games to launch an NFT collection in their flagship title Blankos Block Party, a partnership of firsts paving the way for the future of digital ownership in gaming. Blankos Block Party is a ground-breaking, multiplayer party game featuring digital vinyl toys known as Blankos that live on a blockchain, inherently providing players with proof of verified ownership and authenticity. Burberry was the first luxury brand to feature in Blankos Block Party.
As part of this collection, Burberry launched its own branded in-game NFT accessories, including a jetpack, armbands and pool shoes, which players can apply to any Blanko they own. Sharky B could also be trained to master an array of powers, including speed and agility, ensuring both the toy’s uniqueness and rarity.
At a time when customers are continuously redefining community spaces and the ways in which they connect with brands, Burberry’s collaboration with Mythical Games reflects the house’s longstanding spirit of innovation and creativity, going beyond to forge lasting connections with its communities.
Balenciaga
Luxury fashion brand Balenciaga announced a partnership with Epic Games and Fortnite to bring the latest merch collection online and IRL (In Real Life).
The Fortnite x Balenciaga limited capsule features numerous in-game looks that fans can now purchase and sport as their everyday attire. Fans are given the chance to match the skins they purchased in-game with a physical version like the white Balenciaga hoodie as seen on Shady Doggo, one of the most popular characters in the video game Fortnite.
3 other popular Fortnite characters are also getting Balenciaga makeovers in the game: Banshee wears a tiger-striped bodysuit; Ramirez has a sequined top and tattered jeans; and Knight wears Balenciaga’s armor boots with a hoodie and shorts. Each outfit has transformational properties — as gameplay progresses and changes, Banshee’s suit lights up red and Ramirez’s sequins glitter from silver to gold.
It’s the first time Fortnite has welcomed a high-fashion brand into its world but not the first time Balenciaga and Fortnite’s owner; Epic Games, have worked together. Afterworld, the video game designed to present Balenciaga’s fall 2021 collection, was made using Epic’s Unreal Engine.
In the game, players can not only choose new Balenciaga outfits and accessories, but they can also enter a Balenciaga store and do a custom Balenciaga dance. Users who make a purchase and play in their new Balenciaga looks can also submit photos of their characters to be included on virtual billboards within the Fortnite town square.
In the real Times Square in New York, real humans could find a Doggo billboard and travel up Madison Avenue to the Balenciaga store, where they’ll be able to shop a fully fleshed-out collection of Fortnite and Balenciaga products.
Gucci
Gucci dived into virtual luxury footwear in 2021 with a new exclusively digital pair of sneakers called “The Gucci Virtual 25” that can be “worn” in augmented reality or used in partnered apps like Roblox and VRChat. Surprisingly, the shoes are a lot less expensive than a typical Gucci piece: you can buy the Virtual 25s from Gucci’s app for $12.99 or $8.99 in the Wanna Kicks AR sneaker app.
The Gucci Virtual 25 sneakers were designed by Gucci creative director Alessandro Michele and the Italian fashion house partnered with Wanna, a company that specializes in providing AR technology for marketing.
Concurrently with the unveiling of the House’s Gucci Garden Archetypes — an immersive multimedia experience in Florence, Italy, that explores and celebrates the house’s inimitable creative vision — a virtual Gucci Garden space opened its doors to everyone on Roblox for 2 weeks in May 2021.
The Gucci Garden experience was divided into themed rooms, where visitors could immerse themselves into Michele’s creative vision and his multifarious inspirations and share the captivating experience of the exhibition with their friends.
Moreover, Gucci collaborated with New Tokyo’s 10KTF NFT project. The NFTs were crafted by 10KTF’s Wagmi-san, and designed by Alessandro Michele.
10KTF features unique 1 of 1 NFTs by world-renowned craftsman, Wagmi-san. He basically creates accessories for various parent NFTs. This also means that customers need to own NFTs from specific collections. The supported NFTs include Bored Ape Yacht Club, Cool Cats, Pudgy Penguin and various others.
Wagmi-san used a purpose-built ERC 721 compatible smart contract to enable users to craft derivative NFTs from parent NFTs. This smart contract only allows the current owner of the parent NFT to create such a derivative. In addition, the contract only allows one accessory for each parent NFT.
Besides, 10KTF also makes blanks, which are essentially work-in-progress NFTs. Owners can then bring back these blanks when they have their parent NFTs in their respective wallets, turning them into finished products.
Cementing its metaverse presence, the Italian fashion house has launched a new Gucci Town in Roblox. Gucci Town in Roblox features a central garden that connects to other locations in the town. Users can play mini-games, go to a cafe or purchase Gucci apparel from a virtual store for their avatars. Apparently, virtual garments are made using Roblox’s new “layered clothing” tech.
Louis Vuitton
In 2021, Louis Vuitton, one of the favorite brands for lovers of luxury and high fashion, launched “Louis: The Game”, a game that allows users to accompany a character named Vivienne through a virtual world in search of exclusive postcards of the brand that are actually NFT’s. Seeking greater reach and involvement with young consumers, the brand released NFTs loaded with information around the brand’s 200th anniversary, as well as a game update.
Unlike other companies that have simply auctioned off NFTs, Louis Vuitton invites fans to solve puzzles in the game, to earn the right to enter a raffle of ten different NFTs featuring Vivienne in a variety of the brand’s diverse looks, and that they will be portable between different platforms and can be used as profile images (something to which the new generations give a lot of weight).
According to the brand, the game has been downloaded more than 2 million times and is available for both Android and iOS devices.
In 2019, the iconic brand also released a capsule collection in collaboration with Riot Games’ “League of Legends.” The collection, branded as LVxLOL, was designed by Nicolas Ghesquière, the fashion label’s artistic director of women’s collections. The pieces ranged in price from a $170 bandeau, to a $5.600 leather jacket. The companies have also collaborated in the past. The partnership was first announced in September 2019 and in October, “League of Legends” released Louis Vuitton skins also designed by Ghesquière. Players could purchase the outfits for their characters for around $10.
Balmain x Barbie NFTs
The collaboration between fashion house Balmain and iconic toy brand Barbie has resulted in a unique collection that combines physical fashion items and limited-edition NFTs. The partnership includes a line of ready-to-wear clothes, a line of accessories, and a limited run of NFTs with Barbie and Ken.
The physical collection includes 50 pieces of clothing and accessories, as well as miniature versions of Balmain’s signature handbags and playful packaging inspired by the iconic Barbie doll. The NFTs give collectors a chance to own a piece of the collaboration and possibly get into exclusive events. This makes the already limited collection even more exclusive.
Timecapsule NFT Collection by Prada
The Timecapsule NFT Collection by Prada is a highly exclusive and sought-after collection of limited-edition fashion items. The collection comes out once a month, on the first Thursday of each month, and only a small number of items are available to buy for 24 hours.
Each item in the collection comes with its own unique serial number and is packaged in custom packaging, making it a truly one-of-a-kind piece. People who buy Timecapsule NFTs can go to special events like Prada Extends and Prada Mode, and they can also get invitations to other special events.
Moreover, buyers from the initial six drops have the opportunity to attend Prada Extends Miami, making it a truly unique and memorable experience. Overall, the Timecapsule NFT Collection by Prada offers an exclusive experience and the chance to own a rare, collectible item that will be treasured for years to come.
Hublot Watches
The Swiss luxury watch brand Hublot teamed up with renowned Japanese artist Takashi Murakami to create two limited-edition NFTs. The NFTs feature the iconic smiling flower, a signature theme in Murakami’s work and his Superflat artistic movement.
The first NFT, based on the All Black version, is a limited edition of 216, and the second, which recreates the colors of the exclusive Sapphire Rainbow version, is a limited edition of 108. These NFTs are inspired by the two watches, the Classic Fusion Takashi Murakami All Black and the Classic Fusion Takashi Murakami Sapphire Rainbow, that Hublot and Murakami launched jointly in 2021. The physical watches were sold out in just a few days.
Dolce & Gabbana
Collezione Genesi NFT was created in collaboration with the digital marketplace UNXD. Dolce & Gabbana’s Genesi collection featured 9 stunning NFT garments and jewelry personally designed by Domenico Dolce and Stefano Gabbana. Together with the digital version, which also included a custom digital recreation of Dress from a Dream in one open metaverse of the holder’s choice, the NFT includes a custom-fitted physical version of Dress, and the original sketch of Dress personally signed by Domenico Dolce and Stefano Gabbana. It is the most valuable suit that Dolce & Gabbana has ever sold.
Original Penguin
American heritage and sportswear brand Original Penguin launched an Augmented Reality-powered NFT campaign and auction as part of the brand’s commitment to supporting young digital creatives. The project marks the first time a fashion brand has commissioned TikTok videos to be the actual NFT asset and the NFT auction is available to purchase with traditional payment methods, ensuring the process is accessible. Proceeds from the auction will benefit the brand’s nonprofit partner Free Arts NYC which empowers underserved youth through arts and mentoring programs.
The brand’s fans had to visit originalpenguinnft.com on their mobile device to enter the AR experience. No special equipment or apps were needed as the experience was built to be seamless and easy to access.
An installation of 8 dancing penguins were displayed on a colorful Miami Beach-inspired beach. Guests could walk around, interact with and actually move the penguins, each one with a distinctive skin featuring digital animated artwork from the TikTok creatives Original Penguin has tapped.
Charlotte Tilbury
Charlotte Tilbury, a cosmetics brand, has added the ability for customers to invite friends to join them on a shopping trip via Zoom-like video screens. Flowers sprout from the polished floor, under a domed starry night sky — all inside Harrods’ virtual Dior Beauty store.
Many brands, including Tommy Hilfiger, Ralph Lauren, Burberry, Gucci, Vans, and Balenciaga, have opened virtual stores, in addition to brand-created destinations within existing platforms.
Conclusion
NFTs in fashion are driven by the demand for digitalization. NFTs look certain to play a significant role in the future of fashion, particularly as the metaverse expands to offer new platforms for consumers to showcase their digital purchases. Why? Because Gen Z shoppers crave digitalization and personalization. According to Epsilon, 80% of consumers are more likely to purchase from brands that offer personalized experiences. Technically speaking, an NFT is a digital record marked on a blockchain, but for consumers, it’s an opportunity to connect with brands they care about and enjoy unique experiences in the digital format they desire.
