“Luxury brands will present fashion in every form possible and NFTs represent the way to conceptualize fashion’s role“–Paul Ebeling
Key luxury brands are releasing exclusive editions of digital wearables and “digital twins” as non-fungible tokens (NFTs) collectables to open up new revenue streams, build brand loyalty or raise money to give back to society.
Some others use them to boost their branding, tell a story or reach new audiences.
NFTs started to gain traction in Y 2021, it became popular in Y 2022 and a Key element in the trillion-dollar marketing industry. Marketers are increasingly creating distinctive brand experiences and awareness to encourage more interaction within the popular market of NFTs.
In the fashion industry, counterfeits are a big problem. Luxury labels lost $98-B worth of sales to counterfeits in Y 2021. These losses could potentially damage any luxury brand’s profit growth and reputation. This is a reason companies are looking towards technology, specifically NFTs to decrease losses and retain consumers. Another significant reason is the popularity of the NFT market, which luxury brands could potentially tap on to improve their marketing efforts.
Although being competitors, luxury brand conglomerate Louis Vuitton Moët Hennessy(LVMH) joined forces with Prada Group and Cartier in 2021 to establish the Aura Blockchain Consortium.
This non-profit platform creates a “digital twin” for designer products. A “digital twin” is essentially a virtual model designed to accurately reflect a physical object utilized as NFTs. The acquisition of the “digital twin” of the product could act as a membership to event invites and exclusive access to releases.
Its mission is to build a community for consumers to align with the brand’s message. As these luxury fans want in on this special privilege, it generally increases the number of spenders on these luxury goods, overall growing the brands’ awareness in the market.
Have a prosperous week, Keep the Faith!