Luxury fashion brands launch their own NFT collections

It’s no surprise that non-fungible tokens (NFTs) have dominated the cryptocurrency market this year. This booming digital asset class generated sales of more than $ 2.5 billion in the first half of 2021. which shows unheard of financial returns for artists, brands and content creators around the world.

The birth of Metaverses also influenced the adoption of NFTs as the world draws near visions of a future defined by augmented reality. With that in mind, NFTs continue to demonstrate the convergence of culture and technology, which in turn impacts a number of mainstream industries.

Present culture and community

In particular, the multi-billion dollar luxury fashion industry has started paying attention to NFTs. World famous brands like Dolce Gabbana and Jimmy Choo recently launched their own NFT collections, while designer Rebecca Minkoff was the first American designer to create and exhibit an NFT collection during the Week of New York Fashion 2021.

Luxury fashion brands launch their own NFT collections
Luxury fashion brands launch their own NFT collections

Megan Kaspar, CEO of Magnetic capital and member of DAO network (a decentralized, autonomous, fashion-oriented organization) told Cointelegraph that it believed that lFashion is one of the most interesting NFT categories:

“The fashion industry, one of the largest in the world, had annual worldwide sales of $ 2.5 trillion before the pandemic. Red DAO’s thesis on digital fashion at NFT includes the potential that global sales will double due to at least two decades of digitalization of fashion and the new opportunities it offers. “

Although NFTs are still a very young concept for the fashion industry, Kaspar explained that Current physical fashion has certain limitations. For example, he noted that retail luxury fashion items will always have secondary value, but as a product ages, it loses value.

However, digital fashion pieces will always remain intact, with the added value added potential if they are in high demand. Kaspar commented on that NFT digital fashion pieces can also be worn virtually, as she recently demonstrated in a video interview in which she wore NFT earrings and other virtual accessories.

Kaspar also noted that, as opposed to tangible fashion pieces, digital items can be used as collateral to engage customers and engage them in the community. Kaspar mentioned that high-end designers currently have limited interaction with consumers: “The NFTs can be used to trade in physical items or to unlock the next fashionable item. They can also provide access to private events.” He added, “Designers will also be able to communicate with customers through digital wallets, much like email.”

Kaspar is aware that these use cases are still at the very beginning, He believes more brands will develop their own NFTs to gain such benefits. For now, however, it is worth noting that some innovative luxury fashion and haute couture brands have already started to showcase the potential of NFTs.

Source: UNXD and Dolce Gabbana

Shashi Menon, Editor of Vogue Arabia based in Dubai and founder and CEO of UNXD (the curation and curation platform that designed all of the digital assets of the nine-part NFT collection from Dolce Gabbana) told Cointelegraph that his team came forward with the idea of ​​bringing an NFT collection to market in April of this year Dolce Gabbana approached.

Menon shared that the opportunity was contextualized from a place of understanding of both the luxury fashion sector and the world of cryptocurrencies. “We have been involved in both for years and believe we can offer a unique perspective,” called. Menon believes that the story of NFTs and fashion is not a story of technology, but rather of culture, and states that both fashion and NFTs are “ultimately forms of cultural expression.”

Although culture can be the most important element from a brand’s point of view, Blockchain technology plays a fundamental role in ensuring the unique benefits that NFTs achieve, such as: B. Immutability and Origin. For example, Menon stated that the Dolce Gabbana NFT collection (called “Collezione Genesi”) was historic for several reasons:

“There is a deep provenance: Here we have one of the most iconic luxury brands in the world creating their first NFT collection, and it was designed personally by the founders / designers of the same name. There is also an extreme rarity as the collection is only included nine items. These pieces were made once and will not be made again. “

Menon added that the craftsmanship and materials used in the physical creations were exquisite, which in turn meant a lot of time was spent on digital artwork. “We are obsessed with the finest details in textures, fabrics, lighting, shadows, reflections and the physical to achieve an intensely photorealistic result.” The dresses and gown wore Murano glass and Swarovski crystals, while the crowns were silver, plated with gold and palladium, and wore beautiful rubies, sapphires and diamonds. he commented.

“The Gold Glass Dress NFT” designed by Dolce Gabbana. Source: UNXD and Dolce Gabbana

One of the main advantages of digital fashion pieces is the experience they can bring to the virtual world. Menon stated:

“The benefits for owners of a Genesi part combine the digital and physical worlds in an unprecedented way. We offer digital value through Metaverse accessories, real value with products, and access / exclusive experiences to achieve a truly special result. “

Although the concept remains futuristic, the sales figures have been impressive. Dolce Gabbana announced on September 30th that it had sold the nine-piece NFT collection along with some physical haute couture pieces for a total of 1,885,719 ethers (ETH), which at the time was equivalent to just under 5.7 million US dollars.

Kaspar mentioned that Red DAO won the auction for “The Doge Crown”, which also came with a physical version. Red DAO was paying 423.5 ETH, or $ 1.27 million, at the time of the sale. The organization also won the two all-digital “Impossible” jackets, bringing its total spend to nearly $ 1.9 million.

â ???? The Dog’s Crownâ ???? Designed by Dolce Gabbana. Source: UNXD and Dolce Gabbana

Kaspar stated that winning “The Doge Crown” was an exciting moment for the DAO. given that the rank “Doge” (as with an elected head of state) has its roots in Italy, along with the Dogecoin (DOGE) crossover. “We’ve already had a number of celebrities promoting Dogecoin and asking us to wear the crown at future events.” said Kaspar.

In addition to the Dolce Gabbana collection, Luxury accessories brand Jimmy Choo recently launched an NFT initiative in collaboration with New York artist Eric Haze. The collection offers 8,888 “Mystery Boxes” for sale, which reinforce the theme of collectibles.

Jimmy Choo Mystery Box in collaboration with Eric Haze. Source: Ucollex

In addition, a digital version of the sneaker produced for the collection was recently made available to interested parties on Binance. All proceeds from the auction will be donated to the Jimmy Choo Foundation in support of Women for Women International, an organization that helps female war survivors.

Robert Tran, The CEO of Ucollex (the NFT platform behind the launch of the Jimmy Choo collection) told Cointelegraph that The sneaker that rotates on a canvas with Hose’s signature exists only digitally. However, the highest bidder for the auction will also receive a hand-painted limited edition sneaker.

Stay true to the topic of culture, Tran added that this collaboration is fashion with Art mixed together with the development of street culture in an experimental mix of creative minds from different worlds:

“The concept of collectibility is a strong theme in the collaboration, as you can see from the limited edition ‘Be @ rbrick’, which was sold out the morning after its launch. So it was the right time for the brand to start talking about NFT, expanding the creativity of New York artist Eric Haze and Jimmy Choo as digital collectibles that appeal to new audiences. The merging of the digital and the physical will only increase their impact. “

Is the mainstream world ready for the hot NFTs?

While there are a number of advantages associated with digital fashion today, the concept is still at an early stage of development. As social media platforms like Facebook and TikTok continue to invest in Metaverse features, industry experts predict that hot NFTs will become more common.

For example, Tran noted that Metaverse have already found their way into the mainstream world through remote work meetings. In turn, he believes mass adoption by NFTs is not far off: “There is nothing to discuss, the industry will just explode. The day will come when the shows will be made digital and the rights to the items on display will be auctioned and sold for digital use only.”

Chasing Stars Auction, Jimmy Choo in collaboration with Eric Haze. Source: Ucollex

Menon added that while these concepts are not universally applicable today, they will become the norm in the future. He indicated that fashion brands and other companies interested in continuity may want to develop NFT for their audiences in the future. Regarding community participation, Menon said that Dolce Gabbana plans to create its own NFT community called “DGFamily” which will start in the near future.

Education is still needed

While it can be assumed that more brands will want to develop NFTs in order to stay relevant, Kaspar notes that we are also seeing a trend where fashion brands and designers are jumping on the NFT bandwagon just to capture their market share. With that in mind, she believes most brands still don’t fully understand the power of digital wearables and the full range of features these assets can offer.

For example, Kaspar shared that a less discussed disruptive feature of the digitization of luxury fashion is the ability to use these items as collateral in smart contracts for decentralized finance: “All of these will be NFTs on the blockchain that will be linked to smart contracts. That brings this technology. “

Given the initial nature of fashionable NFTs, Kaspar mentioned that this possibility also has an educational component: “Fashion brands are calling me to find out how I can get involved. I think what Dolce Gabbana has done is progressive and will lead the way for other brands.”

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