In some of my previous writings, I've discussed the future of fashion and why I believe 2022 will be the year of digital fashion, as well as the future of streetwear in the NFT realm. Collaborations within the realm, streetwear labels that have created NFT collections, cultural similarities, and other aspects have been discussed in a prior article.

Even while some of you may argue that I should have addressed today's topic before the other fashion-related articles in the area, I've waited long enough to gain a better understanding of the market and see more businesses enter the space. Though my focus is on streetwear, the entire fashion industry has seen significant changes in the last year, and there will undoubtedly be many more in the future. In today's essay, I'll focus on luxury fashion, but aside from the projects, the things I'll discuss are available in all branches of the fashion industry.

For those of you who are unfamiliar with NFTs, let me describe them to you in as few words as possible to help you better comprehend this post.

The term "non-fungible" refers to something that is unique and cannot be replaced. Bitcoin and Ethereum, for example, are fungible, meaning that if we exchange one Ethereum for another, we will get the same thing. On the other hand, a one-of-a-kind trade card is not fungible. If you exchanged for another, you'd get something entirely different. You'd get something radically different in terms of value and appearance if you traded a "Zion Williamson Rookie" card for a "Bill Rusell's Rookie" card.

NFTs, I suppose, have been there for a long time but we were just not aware of them. I'll take the most popular game right now, Fortnite, as an example, but it applies to almost any game. To gain more power-ups or to stand out in the game, every Fortnite player desires a skin or a fantastic weapon. These in-game weapons, skins, and other stuff are all authentic NFTs. The big difference is that in previous games, the business owned them, however in this new NFT revolution, you will. This, I believe, is the most basic definition of an NFT.

I'm assuming you now know what an NFT is, so let's go on to discuss how fashion brands have embraced the NFT area and why this new realm is so beneficial to the entire fashion industry.

Both the luxury market and NFTs are built on the concept of scarcity. This innovative technology adds a new degree of exclusivity to digital designs and collaborations, as well as the possibility for brands to turn them into highly valuable, luxurious, and one-of-a-kind collector items. Physical and virtual self-expression are merging, but I feel that the virtual will overtake the physical in importance over time. The asset is the digital twin of a real-life product and has its value, which is an example of product NFT.

Because they have so much in common, sneakers and streetwear were among the first categories to adopt NFTs. However, this is not the article to discuss this issue. Until now, the concept of paying real money on virtual garments seemed absurd. The luxury market is rapidly evolving, thanks to the millennials, Gen-Z, and generation Alpha who have entered the market. Customers can already make photographs of themselves dressed in 3D apparel, but we'll get to that later in the article.

Generation Z refers to people born between 1995 and 2000 who have a substantial purchasing power of $140 billion each year. With a global population of 2.6 billion people, Gen Z represents the future of retail as affected by this generation. They hold the key to our future.

What's fantastic about NFTs is that they allow creators to earn royalties every time their work is sold or redistributed. Resell markets struggled to attract the most sophisticated collectors and buyers. The emergence of new technology will forever alter the rules of the luxury game.

Consumers are more interested in the backstories of the brands they purchase, and NFTs will have a significant impact on advertising and digital storytelling. If up-and-coming fashion and art brands truly want to stay ahead of the curve, they should keep up with NFT developments and other comparable trends. Collaborating with well-known fashion designers and artists is an excellent method to break into the industry. Launching a few unique NFTs to test the waters is a smart early acceptance test, and if they're well-designed and promoted, many sorts of creative work can be made into collector items.

Establishing a new universe of sale engagement and digital interaction with clients is an important angle for brands. One-of-a-kind experiences and unique moments in time may now be preserved, transferred, and treasured thanks to NFTs, allowing brands to form a much more permanent bond with their customers, ultimately leading to enhanced customer loyalty.

Because of their inherent capabilities, conventional enterprises with a traditional history and background have embraced the digital world with open arms. These businesses aren't interested in crowded, easily accessible markets, which is why they prefer NFTs, which are unique and readily available assets that provide excellent security.

The best part about this new NFT realm is that you don't need to be a designer or have any special equipment to make garments. This can be accomplished by simply installing an application such as Clo3D. NFTs were first introduced in 2012, and they have the potential to help fashion regain its technical footing. The majority of fashion NFTs represent jewelry, shoes, and purses, which can be used to symbolize investments in games or films, such as putting on avatars. Brands must develop digital closets to stay in touch with their customers.

The usage of NFTs in the fashion industry will be enormous, but let me explain three areas where NFTs will have a significant impact:

→ An NFT converts virtual fashion goods into designer and one-of-a-kind things, solving the problem of digital apparel reproducibility.

→ The range of one-of-a-kind items continues to grow. As an NFT, a fashion brand can offer its show video or backstage photographs. The NFT allows you to track down the original copy that will eventually be bought by a collector.

→ The resell market will be greatly impacted because this new technology allows us to keep track of ownership changes and pay brands royalty every time their product is sold in the secondary market.

Traditional fashion brands must remember that not all clients are familiar with virtual environments or cryptocurrencies to take benefit from NFTs. Fashion companies will have to begin catering to the needs of a new market with distinct tastes. They can also work with players that have prior experience in the industry.

Fashion brands can also make limited-edition original goods, such as digital apparel, shoes, and other items, with a corresponding NFT that illustrates the worth of the limited-edition item.

Another, and in my opinion, the best, way to take advantage of NFTs is for fashion brands to act as educators for their communities. They must develop educational resources on the subjects they are about to tackle, in this case, NFTs. If I want to release a digital fashion collection, for example, I'll first write a few articles or make a video describing what digital fashion is, how it differs from what we're used to, and so on until I'm confident that my community understands the concept. The collection's release will be the next stage. This is how I would act, and I believe it is the best approach for brands to join the space with their community.

The "phygital" strategy is the third option, which is already in use and will continue to be utilized for a long time. This concept entails selling physical goods along with an NFT that unlocks a digital version of the same thing that can be utilized in a virtual world like Roblox or Fortnite.

Technology advances quickly, and brands must be prepared when it becomes a necessity. To adapt to this environment, brands should begin offering clients personalized shopping experiences that blend the real and virtual worlds as soon as possible. Customers will learn new methods to shop this way.

Now that I've discussed the advantages that NFTs will bring to the fashion industry, it's time to introduce you to some of the brands that have joined the movement. I'd like to point out that I'll be presenting both traditional brands that have entered the field as well as fashion brands and marketplaces that have emerged within the NFT sphere.

Prada noticed the growing influence of Artificial Intelligence (A.I.) and teamed with Lil Miquela to promote the brand's SS2018 show.

The first NFT clothing goes on sale in March 2019. The Fabricant, a digital fashion house, created a mock neck jumpsuit with a flowing iridescent fabric overlay. Amber Jae Slooten's story and how much she believed in a digital fashion world as I learned more about this new fashion house amazed me. She's the first person to graduate from a fashion school with a digital collection. The Fabricant made waves in 2019 when they sold a couture dress for $9500 on a blockchain auction in New York, even though buying something that can't be worn and flaunted in public was unfathomable at the time, and long before NFTs were even discussed on the internet. Even though they had never seen the owner and had only been given images, they were able to dress her. But what does it mean to wear a digital outfit in real life? "On the physical world, maybe 20 people saw her walking that day, "wearing" the garment at the event, but millions of people saw her online and in the news," Amber says. Isn't it wonderful? Yes, you can now tell me that you can post photographs of yourself dressed up in IRL clothes on the internet and reach millions of people. The difference is that you have no constraints with digital clothes and can make and wear whatever you want. Take, for example, The Fabricant's clothesline. Consider how difficult it would be to replicate it in the physical world, if at all.

Digital Fashion designers and retailers began to appear between August and December 2020. Brand New Vision, DressX, and The Dematerialised all entered the crypto-fashion world before the NFT became popular in early 2021, and they did it with nothing but remarkable insight. To sell and exchange fashion NFTs, these companies created their digital marketplaces. Republique, a Singapore-based digital fashion label, was founded to allow clients to purchase cyber clothes designed by the team in response to customer requests.

RTFKT Studios and Fewocious collaborated at the beginning of 2021 to create a collection of 600 pairs of sneakers in three different designs. The collection sold out in less than seven minutes for around $5000 per pair, netting $3.1 million. In addition to the NFT, customers received a physical pair of the sneakers shown in the NFT. The resell price is the only thing that virtual and genuine sneakers have in common. On the secondary market, one of the Fewo Shoe Rare was sold for $40,000.

The first wearable NFT was created in April of last year. Overpriced created a sweatshirt with a few pictures and a "V-code" that connects everyone who scans it to the NFT's whole history as well as a page where the NFT can be viewed. You can view the current and prior owners, as well as the property's value, which is a significant flex. $26,000 was paid for the hoodie.

Gucci was one of the first luxury brands to join the NFT world. Instead of selling a basic NFT, the premium house sold a four-minute film, Aria, co-directed by Alessandro Michele and photographer Floria Sigismondi. Flora, animals, and clothes from the collection were featured in the film's theme. The release brought in $25,000, with all earnings going to UNICEF to help with COVID-19 relief operations.

Three new luxury houses have made their presence felt in the NFT realm as of August 2021. Burberry and game technology startup Mythical Games got things off by selling "Burberry Blankos," an NFT avatar, for $300 each. In less than 30 seconds, all 750 sharks were gone.

To commemorate the brand's 200th anniversary, Louis Vuitton launched "Louis The Game," a mobile game with multiple realms in which players can travel and gather candles. Players have to uncover 30 hidden NFTs created by famed artist Beeple as part of the game's scavenger hunt. The NFTs are not for sale.

Olivier Rousteing, Balmain's Creative Director, created "The Flame Dress" exclusively for a Singapore magazine to commemorate his tenth year with the French fashion company. It was the first major fashion publication to join the metaverse.

Rebecca Minkoff is the first woman in the United States to design a fashion NFT. Along with her fall/winter collection, she developed four styles, as well as various accessories and luggage. The entire profit went to the Female Founders Collective, which helps female-owned businesses affected by the pandemic.

In the "metaverse," Balenciaga was the first luxury brand to clothe human avatars. Last year's Balenciaga x Fortnite collaboration was a huge success. Balenciaga in-game offers four virtual clothing (or "skins"), as well as accessories, weaponry, and a virtual Balenciaga venue (complete with a Balenciaga store). During the activation, which lasted only one week, a limited-edition run of Balenciaga x Fortnite hats, T-shirts, and hoodies was available at Balenciaga stores and on Balenciaga.com.

Dolce-Gabbana sold a $5.65 million collection through the UNXD marketplace. The most costly fashion NFTs are these. The $1 million menswear suit "Glass Suit" came with privileged access to Dolce Gabbana events and tours for two years from the date of purchase.

With the marketplace The Dematerialised, Karl Lagerfeld released Funko Pop-styled figurines NFTs in the late-great designer likeness. To balance their carbon footprints, a mangrove tree was planted for every NFT sold. It was one of the few NFT projects that show how digital fashion may help to slow down global warming.

Ray-Ban collaborated with German artist Extraweg to create the world's first virtual eyewear in a 3D motion graphic in October of last year. Ray Ban's traditional aviation sunglasses are the highlight of the NFT.

The Patek Philippe Nautilus 5711/1A-010 NFT was released at the end of 2021. It is one of the most sought-after models and one of the most difficult to acquire. Every collector would pay an absurd amount of money to ensure that the piece would be included in their collection. The NFT was valued at $120,000 and was split into 1000 fractions, with 920 being available for purchase.

For over $3000 each, the Mason Rothschild built 100 Hermes Birkin-inspired NFTs. There was no connection between this publication and the French merchant. Similarly, 10,000 NFTs inspired by Chanel Flop bags were launched on OpenSea and sold for $120 each.

JW Anderson auctioned off a digital copy of Harry Styles' internet-breaking patchwork cardigan. The NFT took 300 hours to build, and all sales went to akt, a humanitarian organization that helps homeless LGBT+ people.

Zara collaborated with Adererror, a South Korean brand, to create a collection with "real-world" pricing.

T-shirts, tracksuits, jackets, and hoodies were released by BohooMan in an eight-piece collection. Despite receiving fast-fashion priced bids, the NFTs go unsold.

Balmain unveiled its collaboration with Barbie Collection at the beginning of this year. Three virtual Barbie and Ken dolls dressed in Balmain designs and silhouettes were released as part of the collaboration. Balmain's website sold the NFTs with actual clothing.

Gucci has re-entered the NFT scene, this time in collaboration with SUPERPLASTIC. In early February 2022, the two issued a three-part drop of 8-inch figurines covered in reinvented Gucci designs by visual artists-influences Janky and Guggimon. The NFTs also included one-of-a-kind and vintage Gucci pieces handpicked by the fashion house's crew and Creative Director.

Aside from the brands mentioned in this article, there are a slew of others who have joined the field, particularly in streetwear, or were born within it. To mention a few labels associated with streetwear, consider The Hundreds, Adidas, Nike, and Bape, all of which can be found in a streetwear NFT article I wrote a few months ago.

When it comes to digital fashion companies, you'll undoubtedly hear names like Digitalax, Disrrup, Futures Factory, Artisant, and many others, all of which can be found in a recent piece dedicated to the entire digital fashion market.

Because they are one of the largest fashion houses in the industry and have the most effect on the market and culture, I've decided to focus this essay just on these brands. I'm sure there have been others that have entered the space, but these were the ones who stood out to me.

Fashion's future, whether digital or physical, appears to be bright. With more and more brands realizing the benefits of NFTs and entering the market, adoption will accelerate, and the innovations that will be introduced are unimaginable. This is something I am certain of.

More brands and designers will emerge, and the innovations they will bring to the fashion world, both in terms of luxury and streetwear, are unthinkable right now. This rising technology will give birth to new minds, new means of producing scarcity and exclusivity, and other "assets."

As is customary, I'd want to conclude this article by posing 2 questions that I'd like to discuss with you on Twitter:

Do you believe NFTs will have a significant impact on the fashion industry? Why/Why not?

What do you believe the fashion industry will gain from NFTs?

Thank you for taking the time to read this! I hope this article provides you with useful knowledge! Please do not hesitate to get in touch with me if you have any questions. I'll be happy to respond!

We can connect on Twitter!

Have a fantastic day/night!