Fashion brands are all about exclusivity; NFTs offer limited copies with proven authenticity and clout in the metaverse. Are they a match made in heaven?
2021's NYC Thanksgiving Day Parade, the 95th edition organized by Macy's featured NFTs.
Budweiser, originating from St. Louis, Missouri in 1876 and one of the best-selling beers in the USA, launched an exclusive NFT Heritage collection featuring historical bottles, and are even going by the twitter handle: beer.eth.
Adidas Originals, the highly popular sportswear brand, recently announced their entry into the metaverse, with popular NFTs collection like Bored Ape Yacht Club (BAYC) and more. It's twitter account features a BAYC profile picture and it even has a dedicated metaverse section on their website.
— adidas Originals (@adidasoriginals) December 2, 2021Today we leap Into The Metaverse with @BoredApeYC, @gmoneyNFT & @punkscomic.
It’s time to enter a world of limitless possibilities.https://t.co/LmgtrRn20c pic.twitter.com/40kU8tayrS
With many legacy brands entering the NFTs and metaverse space, one might wonder — what about fashion brands? After all, its lifeline depends on exclusivity, limited copies, highly sought-after pieces by famous designers that people would literally queue up for. The decision to brandish an exclusive Chanel bag is probably not that different from having a Punk or Ape as your PFP — it signals social exclusivity, that you are in the "in-group".
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What Could NFTs Offer Fashion Brands?
NFT stands for a non-fungible token, which, in essence, means an item that is one of a kind and not replaceable or interchangeable by any other item. Virtually own-able accessories and clothes, specifically to use in-game made, that are made by big fashion brands such as Gucci are an example of NFTs.
Owing to the scarcity of each individual NFT, the value and worth often skyrocket if the maker of the NFT is a prominent individual or organization. This is exactly why fashion brands make use of NFTs. Besides Gucci, fashion giants Louis Vuitton and Burberry have also dabbled in the creation of NFTs. But why?
Well, simply put, these virtual collectibles offer brands the opportunity to advertise to an otherwise untapped market of consumers: gamers.
Not every gamer wants a thousand-dollar bag to flaunt as they drive down the street to get a cup of coffee. Real-life social standing does not mean as much to online gamers as their internet persona does, and thus these NFTs allow gamers to buy from brands they normally wouldn’t be consumers of.
In turn, this provides abundant advertising for fashion brands. Not only are their products are worn in the metaverse, their profits skyrocket as people buy more and more of their NFTs. Not to mention the cost of making NFTs may have a lower footprint compared to making actual tangible items.
What Are Some Benefits for Fashion Brands to Adopt NFTs?
Here are some more reasons why fashion brands may want to make NFTs.
Cost Cutting for Models
Generally, making and marketing a product costs as much money equally if not sometimes more. On average, a Gucci model makes $62k a year. When brands make NFTs, they do not need a tangible model because the item itself is intangible. Thus, they can cut costs on models by advertising their products in the form of NFTs online.
Ownership Exclusivity
Perhaps the most eye-catching feature of NFTs is the exclusivity it offers. Not only do users get the ability to buy fashionable items digitally, they often get the unique “1 of 1” experience that provides a certificate that they are the only owner of said NFT. This adds an extra tier of exclusivity, which pays off well in the fashion industry.
Longevity For The Brands
Anyone who buys a collectible will not be selling it because they’ve bought it for the sole purpose of collecting it. Similar psychology applies to NFTs. Although they are a good long-term investment opportunity, most people buy NFTs as collectibles intended to be kept. Thus, keeping NFTs of fashion brands will allow the brands to live on virtually for as long as the NFT exists, providing brands longevity that tangible seasonal releases wouldn’t.
What Are Fashion Brands Doing in This Space?
Collaboration with OpenSea: Vogue Singapore
Fashion magazine Vogue Singapore launched an NFT collection inspired by "new beginnings" with OpenSea, the leading NFT marketplace. The collection features two digital-only covers as NFTs, as well as eight extra images from the beauty, fashion, and art realms, created in conjunction with numerous digital producers.
This special NFT collection was featured on OpenSea from Nov. 10 to Nov. 13, 2021, inspired by Vogue's September worldwide theme of 'New Beginnings'.
Merging Gaming and Fasion: Gucci
Gucci has begun on a wide campaign to design and sell digital apparel and accessories for avatars and games during the last year. This brings in revenue for the fashion label while also allowing video game players to articulate and express themselves.
Gucci has collaborated with The Sims, Tennis Clash, Genies, Pokemon Go, Roblox and Animal Crossing in the previous year, in addition to its own Gucci Arcade, which debuted in 2019, and its Sneaker Garage, which will debut in October 2020.
NFT Game for 200th Anniversary: Louis Vuitton
Louis Vuitton was born in 1821, 200 years ago. The company is going all out to commemorate the founder's milestone birthday. Louis 200 is a commemoration of Vuitton's life as well as a reaffirmation of his legacy. Upwards of 200 different people have been requested to participate in Louis 200 in multiple roles. Sou Foujimoto, Lego, Stephen Sprouse and brand ambassadors BTS are among the participants.
This initiative provided the visionaries participating the freedom to create a box measuring 50 x 50 x 100 cm (about the size of Vuitton's first trunk in the 1850s). They were given a wide range of materials to choose from, ranging from more physical forms to virtual or augmented.
NFT Collection with Mythical Games: Burberry
Burberry and Mythical Games have announced a collaboration to develop a non-fungible token (NFT) set in Blankos Block Party, a collaboration of firsts that will pave the path for the new digital property in gaming.
The limited edition, scarce Burberry Blanko, which is a shark named Sharky B, is an NFT that can be acquired, modified, and traded within the Blankos Block Party community, and is decorated with Burberry's new TB Summer Monogram and influenced by the brand's Animal Kingdom house code. Burberry will release its own unique in-game NFT accessories, such as a jetpack, wristbands and pool slippers, as components of this series, which players may apply to any Blanko they possess.
Fashion in the Metaverse Wearables Market: Decentraland
Decentraland is a decentralized 3D virtual reality platform made up of land pieces that can be owned by players. NFTs are digital real estate in Decentraland that can be purchased using MANA, a cryptocurrency coin based on the Ethereum network.
The Decentraland Market offers wearables, including original creations by users. This includes accessories, clothing for upper and lower bodies, headwear and shoes as well.
Should Fashion Brands Bank on NFTs?
Non-fungible tokens are arguably a good investment for fashion brands. As blockchain comes to meet fashion, NFTs are born. Not only can they possibly provide endless advertisement forever, but they can also help cut back on preexisting production costs. It can be said that in this digital age, for brands to start making NFTs now would be a logical choice.
The metaverse has a long way to go, but brands joining in as NFTs could possibly be what’s next to come.
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