NFTs are Shaping the luxury fashion industry’s future

New digital trends have found a home with the creation of virtual fashion shows and digital immersive experiences. You may have just heard about NFTs, which are also called “non-fungible tokens,” and how they are taking over the digital world. But what are NFTs, exactly? How do they relate to the fashion business?

NFTs are a form of cryptocurrency. Fungibility is the ability of an asset to be exchanged for another asset of the same value. In the case of NFTs, on the other hand, proof of ownership of the asset (like an art piece) would be given directly to one owner. It can’t be swapped or copied, and its owner is the only one who can sell it. Blockchain is a popular way to keep track of how NFTs move through the digital arena. This is an exciting idea for fashion companies, especially in the Metaverse, because an NFT goes beyond physical reality to give a “phygital” experience to a fashion customer.

NFTs are quickly becoming a new tool for the fashion industry to offer different experiences to younger people, who are mostly interested in fashion and video games. Mordor intelligence says that the gaming industry was worth USD 198.40 billion in 2021 and is expected to be worth USD 339.95 billion by 2027. It’s not surprising that people are paying more attention to the market. Brands see this new medium as a way to add value to the gaming community by getting users to connect with their brand. Digital fashion and skins have already changed how users act. It makes sense for fashion brands to get into the market.

A well-known company that sells clothes and accessories has said it will work with a popular online team-based war game. The clothing and accessories brand made a skin for each of the main characters in the game, as well as a small collection of items. The company also made a custom case for the game’s trophy, which looked like one of its trunks. In line with their digital strategy, they made a set of 30 NFTs that can be collected through their game 200 Anecdotes, which was made to celebrate the brand’s 200th anniversary. The NFTs for the fashion brand could only be used in the game and couldn’t be sold or traded.

This year, some businesses have even applied for trademarks in the Metaverse. One well-known brand showed an NFT collection at London Fashion Week, and another bought a plot in a virtual world. A well-known Italian designer clothing company is looking into how clothes could be moved between different digital “worlds.” Fashion platforms are trying to make it so that virtual closets can be moved from one gaming platform to another. Gamers put a lot of time and money into making their avatars look good so that they stand out. Because of this, people who visit the metaverse will automatically buy clothes and accessories for their avatars.

NFTs seem to be changing into a field where designers are less limited by physical constraints and can make art without thinking about how it will work in the real world. It also lets them start a secular community where they can watch private screenings and find out about upcoming NFT releases.

At the beginning of the year, a fashion brand and a toy company worked together on an NFT product. The fashion label’s monogram print was put on the clothes of three digital dolls. The doll’s avatars were put up for auction, and the highest bidder got both the avatar and a real-life doll that looked like the one in the picture.

As the NFT world changes, we find ourselves in situations we didn’t expect. In December, a digital artist from Los Angeles had an art show where he showed high-end handbags that looked like a famous purse.

Without a doubt, the NFT craze’s digital transformation has made fashion companies more accessible to tech-savvy customers. Smaller fashion labels have also started selling their clothes on online shopping sites. With a lot of money being put into the digital space, NFTs look like they will be an important part of the language of the future. Also, it’s not clear how companies will use NFTs in design and marketing to attract the global fashion community.