Fashions influence in cryptocurrency during the year 2021 has been huge and it will continue to grow in 2022.
Non-fungible tokens, or NFTs, have become one of the most talked about markets in the crypto space this year. A recent report Research found that NFT sales are expected to hit a record $17.7 billion by the end of 2021. This may be because a number of mass brands have started to adopt NFT. According to a recent study by Bain & Company and online luxury fashion platform Farfetch, digital interactions with consumers are becoming increasingly important for brands. The report explicitly states that "digital interaction with coworkers increases when you choose to buy a product." Hence, irreplaceable tokens that are directly linked to brands and their users are becoming more important than ever.
Understand what it means to be useful for creating NFT
While it's worth noting that mass labels like Adidas, Dolce & Gabbana and others have launched NFT, the utility behind the irreplaceable token is proving to be the real key to the fashion brand's success. Karina Grant, co-CEO of The Dematerialized, Digital Fashion Market, said that utility adds meaning and value to an important token:
"Just like in real life where a physical card can scan your access to a club, utility can be anything from using NFT as a membership card, to the ability to bring assets into the game, or sustainability or social responsibility for NFT. -Buyers involved." Grant notes that The Dematerialized is experimenting with different forms of utility with each of the NFT drops released by the platform. He explained that previous versions included utilities such as carrying or playing 3D assets in augmented reality or unlocking access to branded communities. "With Rebecca Minkoff's NFT collection selling out in September, NFT unlocks the highest level of VIP access to a year-long brand experience." in which only owner Karl is invited to participate.
It has become clear that fashion NFT needs to provide some kind of consumer loyalty that allows brands to interact with people in both the physical and digital worlds. Avery Aquinen, president of VaynerNFT, an NFT consulting agency, said that while the utility of some NFTs is simply in the name of art, the brands that bring NFT to market need deeper functionality based on the existing community.
For example, Akkineni says that VaynerNFT recently helped global fashion house Coach launch its first NFT collection, which includes eight Coach Holiday animals from the digital game Snow City. Akkineni added that NFT was also launched in honor of Coach's 80th birthday, producing 80 unique digital artworks, including eight of Coach's celebratory animals. Akkineni stated that each NFT digital trainer also entitles the original owner to a free, bespoke physical bag by 2022, not commercializing their IP or asking consumers to pay anything,” he said. In order to effectively connect with the coaching community, Akkineni mentioned that the NFT Coach was provided free of charge from 17 to 24 December this year:
NFT Coach can be ordered from Polygon Blockchain. Coach is careful not to commercialize too early and is researching the space to assess demand and see if the audience is interested in NFT.
NFT mode should also work in meta universe
The fact that brands now need to interact with consumers both virtually and in real life also gives NFT an additional technical benefit. According to Bain & Company's latest luxury goods report, “New keywords and phrases – such as metaverse, scale adjustment, and technology stack – will come to the fore as the industry grows and evolves.
As a result, several companies started researching NFT on Metaverse. For example, Pet Krewe, a pet clothing e-commerce company, recently opened a digital retail space in the Metaverse community called ShibaVerse. Alison Albert, founder and CEO of Pet Krewe, said the company is promoting its brand through the launch of NFT pet clothing on the Metaverse featuring balloon dogs called "Shibaloons". According to Albert, the NFT Pet Krewes is worn as a unique design that matches the shibaloon. While Albert points out that these costumes can be stored and exchanged for various Shibaloon dogs on the ShibaVerse, Pet Krewe is using this digital retail space as another form of branding or marketing. “We can connect with dog-loving customers in a dog-oriented metaverse. It reaches our customer base in a completely different marketing element."
18-year-old fashion label Mishka also entered the NFT space with her famous eyeball logo. The collection of 6,696 NFT is known as "The Keep Watch Crew" or "KWC" for short. Greg Mishka, founder of Mishka NFT and Keep Watch Crew, said that the Keep Watch is the most iconic and recognizable element of the Mishka brand, for fans as well as the streetwear and fashion community.
Given the label's strong consumer base, Mouse stated that KWC NFT is the next chapter for the brand. “KWC is your ticket to what we call MISHKAVERSE. "Direct billing includes lifetime discounts and exclusive merchandise," he said. Mouse adds that the label is attempting to incorporate Web3 elements into its website. "This will allow users to check the NFT they have to access the exclusive page and down through the website."
Should Fashion NFT stay tied to a physical object?
While the utility of NFT mode goes beyond offering digital goods in the context of physical goods, some in the industry believe that it is still one of its most important features. For example, Grant noted that associating physical elements with digital NFTs is an important part of the process of accepting irreplaceable tokens from all categories. He determined:
“We have a very interesting split point with our community right now, with half wanting more physical and the other half wanting more digital. However, when we conducted surveys outside of our current community, the numbers were much higher. This makes sense because first-time or new NFT owners are more likely to have the traditional belief that physical products are “more valuable” than digital products.
Following on from Grant, Mouse commented that it's important to have physical objects that can be requested or accessed by purchasing something in the metauniverse, as most consumers still live in the "real world".
Therefore, it's no surprise that mass fashion labels like Coach have donated to NFT owners physically crafted bags. Interestingly, however, Akkineni mentions that NFT owners sometimes don't buy their physical goods, as is the case with other products associated with consumer-focused brands. VaynerNFT has developed a collaboration called Anwar Carrots x Veefriends, a collection that is sold on Nordstrom and available to all NFT owners on Self-Aware Hare. It was only after being reminded several times that the owner asked about the physical items,” he said.
NFT fashion is trending
The emergence of NFT in 2021 represents a forward growth for big brands. While companies like Nike have already taken steps to enter the Metaverse, more labels will follow. It comes as the world moves towards a digital business model, which is also being driven by the emergence of COVID-19. For example, Albert stated that Pet Krewe is still unsure how COVID-19 will play out in 2022, noting that the supply chain is currently still disconnected:
“We have to protect our bets on alternative sources of income. By tapping into a metaverse that aligns with our own corporate values, we can unlock additional revenue streams through NFT arts and digital wearables.
Grant also notes that The Dematerialized is particularly fond of "behavioural start-ups" that use NFT to disrupt physical production methods. It is important to note, however, that brands will face challenges along the way. According to Grant, fashion brands face three main obstacles, the first is rethinking the value of Web3 and digital ownership. Second, Grant stated that it was important to understand the purpose and description of the NFT launch: “We support a launch that is part of a long-term strategic commitment to Web3, not a marketing ploy to increase sales in the short term.
Lastly, Grant points out that getting 3D asset designs internally will be a challenge for big brands. Grant remains optimistic, however, that this challenge will be solved: "Mainstream acceptance will come when more big fashion brands, influencers, and creatives get involved."