Nfts Will Reshape The Future of Fashion

MetaversePlanet

July 11, 2022

Indivisible tokens (NFTs) are reshaping the future of the global fashion industry, bringing about innovation in product design, manufacturing processes, and community engagement. These tokens also play a crucial role in developing new methods of authentication and opening up additional revenue and marketing channels.

The Huobi Research Institute has published a report titled “An Overview of Fashion NFT – How NFTs Will Change the Fashion Industry,” emphasizing the potential advantages that fashion brands can gain by embracing NFT technology, often regarded as a form of digital art.

NFTs have revolutionized the revenue models of fashion brands, allowing them to sell digital representations of physical products as NFTs before actual production. This approach facilitates free trading of products in the secondary market, and smart contracts embedded in NFTs enable brands and designers to earn ongoing royalties, typically ranging from 5 to 10 percent of the resale price.

In addition to transforming revenue structures, NFTs address the persistent issue of counterfeit products in the secondary resale market by providing a traceable authentication method, ensuring consumer protection. NFTs go beyond traditional fashion product descriptions by incorporating tags containing information about interoperability, copyrights, product features, smart contracts, and ownership.

Fashion brands have adopted NFTs not only as a revenue strategy but also as a powerful marketing tool to cultivate a loyal customer base. These tokens facilitate easy connections among consumers through dedicated Discord groups or NFT-exclusive communities. Token-entry e-commerce platforms, such as those created by Shopify, elevate privileges by offering exclusive online showcases, discounts, and experiences to NFT owners.

The global fashion industry is still in the early stages of adopting NFTs in its fundamental business areas, with only 17 percent of fashion brands in the Vogue Business Index having explored or incorporated NFTs into their products. The potential of NFTs in aiding fashion brands to expand their offerings, revenues, marketing channels, and customer base is vast.

As more fashion product categories embrace NFT technology, it is crucial for fashion brands, irrespective of the category, to consistently consider the six core values driving the success of fashion NFTs: sellability, originality, exclusivity, community, identity, and interaction.

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