Virtual reality is borderless, and fashion has begun to explore it in relation to business. From the world of cryptocurrencies to art, the phenomenon of NFT (Non-Fungible Token) is increasing in the fashion industry. Behind the “NFT” is a variety of products intended to be enjoyed only in the virtual world. This world is becoming more and more familiar to future buyers.
What is NFT?
In other words, NFT is a Non-Fungible Token (NFT) - digital token.
NFT cannot be replaced or replicated due to its unique characteristics. However, physical and cryptocurrencies are substitutable. That is, they can be exchanged or swapped with each other.
NFTs are digital assets that represent real-world objects such as art, music, in-game items, and videos. NFTs reside on the blockchain, a distributed public ledger that records transactions. They are often bought and sold online using cryptocurrencies and are usually encoded in the same underlying software as many cryptocurrencies like Bitcoin and Ethereum.
Owning an NTF (meaning digital original) is like owning a unique, unique, and iconic piece of work in the real world. And, as we know, a sense of exclusivity and uniqueness attracts customers. For this reason, product customization is becoming more common.
NTF in the fashion industry
Fashion NFTs seem to be a very successful marketing tool for brands. Still, they are also a way for emerging digital artists to leverage their skills to showcase, often collaborating with larger brands. You can’t wear digital clothes in real life, but you can wear them in your new digital life. The possibilities of digital fashion are endless. It supports the process of creating hyper-creative artwork.
Some marketplaces, such as Digitalax and Dematerialized, have evolved into virtual fashion players. For example, Digital Fashion House Fabricant has partnered with blockchain company Dapper Labsto create an NFT suit that sells for $ 9,500.
LVMH, the parent company of Prada, Richemont, and Louis Vuitton-three fashion giants, have joined forces to form the blockchain group “Aura” to provide traceability solutions to their customers. Customers can track the source of the raw materials used in their purchases, search for specific items in specific stores, and view trading activity in the second-hand market. In addition, NFTs provide fashion brands, icons, and artists with ways to display and sell their work.
Reasons why NFT in fashion can be used?
NFTs in virtual fashion items can make a unique as a physical, thereby solving the problem of digital clothing reproducibility. Also, NFT extends the catalog of unique products. For example, fashion brands can sell their own show videos and individual behind-the-scenes photos as NFTs. For digital copies, NFTs can be traced back to the original copy that the collector can get. Additionally, The NFT maintains an accurate map of changes in ownership of certain items. For example, it enters the resale market by paying loyalty to the brand each time a product is sold in the used luxury market.
Summarizing digital items can be as unique as physical ones are attractive to the fashion industry as it makes digital assets magnetizable and allows brands to manage their products beyond sales.
NFT is the future of fashion?
Traditional fashion brands need to consider that not all customers are accustomed to virtual environments and cryptocurrencies. Therefore, if a fashion brand wants to adopt NFTs, they need to start meeting the needs of new customers with different tastes. One solution is to create a limited edition original product, such as digital clothing, shoes, fashion accessories, etc., with an NFT that demonstrates the intrinsic value of its exclusivity.
The use of NFTs in fashion is still in the early and experimental stages. However, technology is advancing rapidly, and brands need to be ready when they become a necessity.
To this end, fashion brands must start today to provide their customers with a personalized shopping experience that combines real and virtual with augmented reality technology. In this way, customers are informed of new shopping opportunities.