Fashion is all about being up-to-date with the hottest trend. Luxury brands are keeping up with the changing times as they enter the NFT world.
Fashion and apparel luxury brands have already launched their NFTs. These brands are even exploring the metaverse, looking to be part of the next big thing in future. Luxury brands are using NFT tokens to attract their customers and promote their products.
When something new and innovative comes up in the market, creative sectors like art, fashion and entertainment. So, when NFTs and metaverse hit the market, brands rushed to explore how they can use them to their benefit.
Metaverse is the next big thing to happen to the internet in future. Experts predict that it will transform the way we interact with the internet and use its services. Moreover, NFTs will play a big role in empowering the decentralized economy in this metaverse.
That is why luxury brands like Gucci, Louis Vuitton, RKTFKT, Dolce & Gabbana and others have resorted to NFTs and metaverse to keep up their brand image with the advancing times.
Today we will be discussing what benefits NFTs bring to luxury brands.
Recently every other luxury brand is dipping its toes in the NFT space. It amazes us why brands out of all into NFTs.
Gucci is the first luxury brand to launch its first NFT. It is a 4-minute film inspired by their Aria collection.
The “Arianee” platform teamed with “French Fashion” and “Haute Couture Federation” to generate NFTs that could be exchanged at the 2022 men’s fall/summer fashion week in Paris and other high fashion exhibitions.
Dolce & Gabbana launched 9 NFTs in Venice Fashion Week. The buyers of the NFT received physical items as well as an entry pass to exclusive D&C events.
Surprising point is that these luxury brands have already established their brand voice in the market. They are already at the top of the industry and quite successful. Then what’s the need to shift to NFTs and metaverse.
Here is why brands are launching NFT projects and their benefits for their business.
It is said that one who doesn’t change with time, lags behind and gets forgotten. Take the case of Nokia and smartphones.
When smartphones emerged in the market, several brands jumped into the race. Every brand was launching its own smartphone with new features, enhanced technology and competitive cost.
However, Nokia decided not to change and continued with its old keypad phones. Soon the popularity of smartphones overshadowed the Nokia phones as they were outdated and non-appealing.
Nokia as a brand failed to change with time and thus its business went downhill.
Today, luxury brands know how important it is to accommodate oneself to the changing world. A few decades back the internet revolutionized the business model of every brand and enterprise. Now every brand has its online website where you can shop. You can even enjoy sale seasons and discount offers when buying online.
So, when the internet presented itself as an exceptional opportunity for brands to expand their business, they took it. Now every brand has an online marketing strategy for its social media, website and other channels.
Similarly, when the metaverse poses itself as the future of the internet, brands are preparing to adapt. Brands have realised that web 3.0 and a more mature metaverse are not far. That is why they have set their foot into this advanced decentralized virtual world of NFTs.
Addidas Originals Collaborated with BAYC, gmoney and Punks Comic team to release their NFTs. The owners of Adidas NFTs had access to virtual wearables for the enhanced gaming experience, tracksuits, hoodies and many more.
In 2022, Addidas Originals and Prada launched a combined NFT project. The buyers of the NFTs can contribute or suggest their ideas for the product designs.
Adidas is not alone in this. There are other brands like Louis Vuitton that have launched an exciting NFT quest game for its customers. You can play the game, complete missions and win valuable NFTs.
As you can see, these NFTs airdrops and games are just for the engagement and fun of the customers. Brands wish to attract their target audience to their brand with exciting and innovative ideas.
In this way, brands are not only offering unique experiences to their customers but also promoting their name.
Gone are those days of traditional ads on TVs, radios and newspapers. Though it’s still prevalent but not as effective as online marketing.
Today online marketing encompasses social media marketing, paid ads and content marketing. However, today the more advanced way of marketing is through NFTs and metaverse.
NFTs are the medium of marketing and metaverse serves as the platform. With the explosion of the NFT market, today everyone is looking forward to having their own NFT collection.
Those who are already into crypto and NFT tokens are crazy about collecting rare NFTs. According to Morning Consult, 23% of millennials collect NFTs. A Percent of these millennials could be the target audience for several brands.
Moreover, what is the best way to attract someone?
You can easily lure a person by catching hold of his interests and likes. Take an example of how you easily convince children to do a chore using chocolates and candies.
Similarly, luxury brands target these high-net-worth individuals with NFT drops and collections. These HNWIs are young, attracted to advance tech and actively involved with crypto, NFTs and metaverse.
Creating NFTs is a new approach to interacting with your target demographic, particularly HENRYs (high earners not rich yet) and young HNWIs. It has the potential to attract a slew of new, devoted followers who will stick with your business for decades.
It’s a means of demonstrating to young HNWIs that you understand them and are willing to adapt your product or content to various platforms to reach them in the most effective way possible.
NFTs have become a unique and highly advanced technology that is helping every sector change and adapt. Luxury brands are using it as a boon to enter the future of the internet. From engaging customers to offering unique experiences and brand promotion NFT tokens are assisting luxury brands keep up with the rapidly changing world.
About Author
