NFTs and Luxury Fashion: Do They Have What it Takes?

Hassam Khawaja

June 29, 2022

What could NFTs, blockchain, and Luxury Fashion have in common? 

Luxury fashion brands and the properties of unique ownership, permanence and royalty aspects have been at the forefront of the NFTs and metaverse conversations. Traditionally fashion brands have used social media and a growing online presence to widen their reach. While it has worked for a handful, for many they have failed to reach their full potential. What’s more is they have increasingly come under attack from a multitude of angles, whether it be counterfeit items, calls for greater sustainability, or the need to continually innovate, luxury fashion is having trouble keeping up.

Stuck Between a Rock and a Fake

Keeping counterfeit and replicated articles at bay is a constant battle. The need to be innovative and keep your unique formula in-house is nearly impossible.  Counterfeit items have created a black hole where consumers have sustained demand, all searching for that ultimate piece at the most affordable price. Resulting in an adverse effect not only on the brand’s bottom line but on the environment as well. Often these replicas are not sustainably sourced (from labour to materials and production).

Luxury brands need to find a way to keep their status while still bringing in those who sit on its outer edges, vying for the chance to own one of their coveted pieces. Imagine providing that luxury and increasing sustainability. It is possible.

 

Luxury Fashion NFTs : Providing Irrefutable Authenticity 

We all understand the impact of buying pre-loved items on sustainability and brand advocacy. The buying and selling of pre-owned designer luxury products has become a trend where masses who want access to own luxury goods but want to consider affordability can fit. However, naturally, the authenticity of a particular luxury brand comes into question when these transactions occur.

Establishing authenticity can involve a multitude of complications, including validation from the brand name itself. This is where new technology can work side by side with existing brands to create innovation and profitability.

Imagine being able to tie the provenance of a luxury bag, from its creation to point of purchase, and all transactions beyond, together. Creating a fully transferrable record of the item’s life and proving authenticity. It would even leave open the possibility for recurrent income for the brand.

 

NFTs are still a very new concept for the fashion industry and luxury brands; however, the pandemic has dictated a situation where high streets have witnessed the closure of physicals store at an alarming rate. Pushing the fashion industry to venture into fashion-tech. The brand’s synergies with the decentralized platform and extension into the metaverse were inevitable.  Big fashion houses are establishing an understanding of the benefits offered by NFTs and blockchain technology.

 

For many brands, NFTs offer a unique way of tapping into their customer base, building loyalty even attracting new customers through creative digital experiences. Furthermore, embedding digital NFTs to physical articles provides distinguished ownership and exclusivity. Through NFTs, brands can recognize the potential to connect with their customers and provide them with an experience that is beyond just physical products. One that offers avenues for a brighter future, further innovation, and greater creativity.

To learn more about the SuperNFT, a patent-pending protocol that will allow fashion houses and hundreds of other industries to create NFTs that lock together identity and provenance take a look at our latest white paper here. 

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