NFTs in luxury retail: why they are still booming

Cappasity Blog
Published in
3 min readFeb 20


Luxury retailers have always been innovators, so when NFTs came around, the luxury-goods industry was quick to embrace the new possibilities they provide. First using NFTs as a way to prove the origin and scarcity of items, and now using them to build loyal communities and engage with consumers as never before. Let’s see how the luxury sector benefits from NFTs and why these digital assets are still booming.

NFTs help deal with counterfeiting

One of the most important features of NFTs is transparency. Thanks to their unique digital encoding mechanism, NFTs allow brands to certify the authenticity and origin of their products, and consequently deal with one of the major problems in the luxury sector — counterfeiting. A physical item with an accompanying NFT can not only protect a retailer from copycats, but also retain or even increase product value in the luxury resale market.

For example, the AURA platform launched by the LVMH group provides a traceability certificate in the form of an NFT for each product. Using this certificate, anyone can quickly and easily authenticate whether a product is a genuine luxury piece or a fake copy. Similarly, high-end items sold on the secondary market can be instantly verified as genuine. This is a great example of how NFTs can help luxury retailers make the authentication process easier and more accessible, preventing counterfeits.

NFTs meet the customer need to own truly exclusive items

Since luxury is based on the concept of uniqueness and exclusivity, the verifiable scarcity of NFTs is what makes them so valuable to the luxury consumer. By creating a digital asset that will never be replicated, a brand satisfies luxury customers’ need to own a one-of-a-kind product. D&G’s nine-piece NFT collection Collezione Genesi is an excellent case in point. The buyers received their NFTs with physical twins of their unique digital assets and a privileged and exclusive access to brand events.

NFTs help target the new luxury consumer

With millennials and Gen Z shoppers projected to make up 60% of the luxury market by 2025, it’s crucial for high-end retailers to find effective ways to reach and appeal to this new generation of consumers. This is where NFTs come into play. Creating NFTs is a new way of connecting with younger, tech-savvy shoppers who are keen on innovations like blockchain and the metaverse.

Hugo Boss was among the first to successfully reach Gen Z audiences using NFTs. In 2021, the brand launched a TikTok challenge that ‘broke’ the internet with 3.1 million #BOSSMoves videos and more than 12.5 billion views. For the chance to win AR jackets and their physical twins, the customers needed to create their own baseball trading card with a Hugo Boss branded effect on TikTok. The campaign set social media records for the company.

NFTs take building loyal communities to the next level

NFTs not only offer new possibilities for high-end brands to reward loyal consumers, but they have the potential to build deeper relationships between companies and their customers. Cappasity is launching a solution that will allow luxury brands to create NFT-based loyalty programs and add extra value to their products.

A Cappasity NFT can contain not only photos and videos, but also text like a brand’s history; immersive content, including 3D/3D View visualization, AR holograms, and virtual try-on; and VIP perks and benefits, like personalized discounts, invitations to events, priority access to new product launches, and more. Brands can add new content to NFTs even after their customer gets the token, which allows them to use Cappasity NFTs as a new customer communication channel.

To create an NFT-based customer loyalty program, contact our team at

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