Non-Fungible Tokens (NFTs) Can Unlock Huge Opportunities for Luxury Fashion Brands

Non-fungible tokens aka NFTs have created a huge rage in the crypto market this year. Over the last few months, multi-millions dollar worth of NFTs have been traded in the marketplace.

Because of their unique nature and cryptographic function, NFTs have been largely popular in industries that can represent digital scarcity of assets. While the digital artwork and sports entertainment industry are making the most of the NFT technology.

As per the latest article by the the luxury fashion world will soon start dabbling into NFTs and that would possibly unlock new opportunities in this market. Top fashion brand Gucci has confirmed to the publication that it’s only a matter of time that it will soon release its own NFT. Besides, the publication has also confirmed through its sources that other luxury brands might follow suit very soon.

Marjorie Hernandez, founder of Lukso, a blockchain platform working with fashion brands said: The question is just who will pull the trigger first. Luxury brands were behind on the e-commerce trend, so there’s now more of a willingness to experiment with new technologies like blockchain.”

Hernandez said that the curiosity for NFTS in the fashion industry is rising pretty fast. Every single fashion person I’ve ever talked to” has inquired about it he said. However, NFT adoption in the fashion industry is pretty much in its infancy.

For e.g. brands can only sell NFTs in the form of GIFs or clothing pieces. However, it doesn’t much appeal to the premium customer base that the luxury brands cater to. To get a glimpse of fashion NFTs, one can check the virtual game Decentraland. Here, some popular virtual characters can don costumes with say Atari brand.

Cathy Hackl, CEO of the Futures Intelligence Group, a company that advises brands about how to approach new technologies and virtual goods said: Right now, fashion being sold via NFT is fashion as art, and not necessarily fashion as a utility. Were eventually going to get to the point where there’s more utility, but we’re not there yet.”

But with several luxury brands looking to explore the marketplace, things can turn for the good in the coming months. Companies here will compete to bring an NFT fashion experience that is clean, premium, and beautiful.

Australia-based startup Neuno is currently working with five luxury fashion brands on launching NFTs told CEO Natalie Johnson. We want to be the universal 3D wardrobe that plugs into everything,” she added.

Interestingly, it remains to be seen what innovative ways do luxury brands adopt to keep their premium customer piqued about NFTs while simultaneously making their brand more approachable.