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NFTs in the Fashion Industry: Top NFT Fashion Brands

1 year ago
By Liwaa
Written by
Liwaa
03.01.2023

With the Web3 trending and the speculation about NFTs, a lot of brands are looking to explore this new space with the fear to miss out on the next big thing. Different brands from all industries have been flocking to the Web3 scene looking for ways to start their Web3 journey, although there are a lot of ways to go about it, the most prominent one seems to be Non-Fungible Tokens (NFTs) as they provide an easy way for brands to elevate their customers experience through digital collectibles and ownership. 

Although NFTs look good on paper, execution is vital, here is where brands are facing issues in creating a solid concept that is easy to understand and deliver to their customers. This being said, fashion brands have managed to find their niche in the Web3 space by creating digital collectibles of their existing fashion line & brand and then integrating them into the metaverse for people to dress their virtual avatars. This set the blueprint and base for all fashion brands to start their journey in the Web3 space.

In this article, we will look at how fashion brands are using NFTs to pave their way into Web3, elevating the experience of their customers and exploring new innovative technology to track ownership and authenticity. We will also look at the metaverse and how fashion brands use NFTs as digital collectibles to allow people to dress their virtual avatars, creating a new revenue model for the companies.

Why did fashion brands decide to use NFTs to enter the Web3 space?

Web3 & Blockchain technology offers many ways for companies and brands to explore their way into this new industry. NFTs for brands are one of the many ways to start their journey and they offer unique advantages to the brand and customers that will purchase them for different reasons. NFTs are digital assets that are unique and are used to represent ownership of digital items such as artwork, music, videos, and fashion items. In the fashion industry, NFTs are being used to create digital collectibles that can be bought and sold on the blockchain.

NFTs have been gaining traction in the Web3 industry due to their ability to provide a secure way of verifying ownership of digital assets. This has made them popular with fashion designers who want to create unique pieces that can be tracked and authenticated on the blockchain. By using NFTs, designers can create limited-edition pieces that can be bought and sold on the blockchain with ease.

Moreover, Fashion brands are using NFTs to further improve their ecosystem, impacting different areas as follows:-

• Creating experiential marketing campaigns: Fashion brands are leveraging NFTs to develop immersive, interactive marketing campaigns that captivate consumers and foster a sense of exclusivity. For instance, a company might use NFTs to give away prizes or unlock exclusive experiences for customers as part of a contest or promotion.

• Building community and loyalty: By providing distinctive and collectible goods that appeal to their target market, brands may use NFTs to develop and reinforce their communities. This can create a sense of loyalty and exclusivity among customers and help to drive engagement and loyalty.

The role of fashion NFTs and digital collectibles in shaping up the metaverse

The use of NFTs in fashion has been growing rapidly over the past few years. In 2020, several major fashion brands began experimenting with NFTs as a way to create unique pieces for their collections. For example, Gucci launched its first-ever NFT collection in collaboration with The Fabricant, a digital-only fashion house. The collection featured five limited edition garments that were available for purchase via an NFT marketplace.

In addition to major brands experimenting with NFTs, there has also been an increase in independent designers creating their own collections using this technology. These independent designers are able to leverage the power of blockchain technology to create unique pieces that can be bought and sold on the blockchain without any middlemen or third parties involved. This allows them to reach a wider audience and potentially make more money from their designs than they would have otherwise been able to do without using this technology.

Moreover, an independent designer’s exposure to the public can be quickly increased by partnering with a well-known brand or IP. Such partnerships are becoming more and more common as a means for designers to connect with the world’s youth, highly digital consumers, even if the NFT collectibles only generate a limited amount of revenue.

For example, Chinese streetwear designer Chi Lei, also known as DrCHI, collaborated with Chinese streetwear brand Definex for a tiger-themed collection that launched in February 2022. The collection included 1,000 NFT digital collectibles showcasing the tiger from the physical collaboration jacket, with consumers able to acquire the collectible by purchasing the jacket or spending more than $30 on Definex’s Tmall store and entering a lottery.

What’s next?

As more people become aware of NFTs and their potential applications in fashion, it is likely that we will see more brands experimenting with this technology in 2023 and beyond. Already there have been several high-profile collaborations between major brands such as Louis Vuitton and Balmain as well as independent designers such as The Fabricant who have all used NFTs in their collections. NFTs have managed to impact multiple industries by providing a solution for the ownership, uniqueness, and trackability of assets through the power of blockchain technology. Many Web2 fashion brands will look to enter the Web3 space and explore different solutions, it is mandatory to find the right partners for product design, NFT marketing, branding, and execution to achieve the best outcomes.

Liwaa