NFTs or nonfungible tokens are no longer limited to specific assets. They are being used for a wide range of things, including artworks, games and even fashion brands. NFT sales are expected to cross $17 billion in 2021. Several mainstream fashion brands have launched NFTs. They are looking to connect with consumers through the NFT space. The goal is to increase digital interaction with the target consumers.
The Utility of Fashion NFTs
Major labels like Dolce and Gabbana, Adidas, and others have released their NFTs. They have seen increased interaction with consumers after the adoption of this digital technology. The NFT utility can be many things, including a member pass or an in-game asset. It can be an investment in social or sustainability benefits. Different utilities have been experimented with by the digital fashion marketplace The Dematerialized. The utilities have included a 3D asset that can be worn in augmented reality. They have been used to unlock access to exclusive brand communities. The NFT collection of Rebecca Minkoff was sold out in September. The top-tier NFTs gave the members VIP access for one year to brand experiences.
Consumer Engagement Is the Key
The goal of any fashion NFT is to increase consumer engagement. Brands use this option to interact with their target audience in both the digital and physical worlds. Sometimes it is only for the art reason, but at other times it tries to extract more benefits for both brands and consumers. Fashion brands have built NFTs that benefit their current community and also attract new members.
Fashion NFTs are also adding features for the Metaverse. As this new digital sector evolves, fashion brands will develop more products for the crypto, blockchain, and metaverse spaces.