The age of digital consumption seems to be changing the marketing model of every industry. Fashion brands seem to transfer to digital networks and technology as a way out of their transformation and upgrading. The luxury group LVMH formed a partnership with Google in June that will use AI to provide personalized services and content in order to enhance user experience. LVMH, Cartier’s parent company Richemont and Prada jointly announced that the three parties plan to create a solution powered by ‘Aura Blockchain’, a global luxury blockchain open to all luxury brands. LVMH said the goal of the project is to improve the transparency and traceability of products. Digital codes are assigned via Aura, giving consumers access to raw materials, origins, and the entire retail process info.
In addition, luxury brands launched mobile applications to improve users engagement and loyalty. Especially during the Covid-19 pandemic, luxury brands have been launching online fashion shows. Creative luxury brands use VR technology to integrate fashion, gaming, and digital tech.
Only $12.99 to own a Gucci
Gucci is perhaps are the most digital-aware among fashion brands. ‘Gucci Sneaker Garage’, a digital platform for sneakers was launched in its app. The app combines stories, games, artistic creation. Users can use various classic Gucci elements to create their preferred sneaker style, creating unique artwork in the virtual gallery. Users can try on and buy virtual sneakers created by themselves via AR. Also, they can publish their works. To promote the project and encourage users to create their own shoes, Gucci invited professional artists to try out the new feature, including Helen Kirkum and Rudy Lim.
Alessandro Michele, the creative director of Gucci, cooperated with the tech company ‘Wanna’ to launch the first virtual sneaker ‘Gucci Virtual 25’, drawing inspiration from the 80’s and featuring a dramatic color combination. The sneakers are sold exclusively on Roblox and CRChat virtual products, priced at $12.99. It is called Gucci’s cheapest product. It's a bargain compared to what the brand sells physically.
The idea of ‘Gucci Virtual 25’ coincides with the concept of CyberMiles NFT Platform ‘CyberWorld ’. As a non-fungible token, NFT is not only endowed with the value of token but also has other derivative features, As a digital collectible, collection, appreciation is its unique value. The NFT sneakers of Gucci are sold to any consumer. Each consumer gets a unique product code which is recorded through the blockchain and represents its ownership.
According to ‘Vouge Business’, Gucci recently confirmed to them that these brands like Gucci release NFT in the future, it is only a matter of time. Many luxury brands and fashion brands are planning to launch NFT soon. Natalie Johnson, CEO of Neuno, a fashion NFT platform for buying, selling, collecting, and wearing, revealed that they are partnering with five luxury brands to launch NFT. They hope Neuno will be a versatile 3D wardrobe in the future. Natalie illustrates one way in which luxury brands can use NFT going forward. Consumers buy an NFT of clothing and taking a photo of wearing the clothing NFT with virtual technology. Using the photo as an avatar in SNS and other virtual games, realizing the Adar that NFT can be used in multiple ways. Besides, they are trying to remove the barrier of requiring tokens to purchase NFT by allowing the purchase of NFT with a credit card. It is the same route as the CyberWorld NFT platform. By investigating the needs of users, CyberMiles found that users can be unfamiliar with cryptos. Sometimes, they just want to buy the artwork of a favorite artist as a collection. They might give up for not owning cryptos that needed to be used for purchase. CyberWorld allows users to purchase NFT with credit cards directly, providing users who are unfamiliar with NFT but want to buy NFT with this perfect option.
Fashion brands have been exploring cooperation in the NFT field
Burberry has announced the partnership with Mythical Games to launch a limited-edition Blanko in the technology company’s game, ‘Blankos Block Party (BBP)’, to be released in July 2021. BBP is an open-world multiplayer game featuring NFT bony toy known as Blankos, that players can collect, upgrade and sell. BBP is creating a new play-to-earn economy and paving the way for the future of digital ownership in gaming. Burberry officials illustrated that the partnership provides infinite opportunities to celebrate Burberry’s core values of creativity and freedom of expression. Rod Manley, chief marketing officer at Burberry, said “pushing boundaries and discovering new ways to innovate with our communities have always been at the heart of what we see as a brand. Being a part of this creative and pioneering community with Mythical Games is an incredible synergy for us and a perfect evolution of our exiting engagement with gaming communities. ” The first expiration into the world of NFT is unlocking total new possibilities, empowering digital natives and gamers to own a piece of Burberry to actively engage and participate with them. Mythical Games also take the positive idea about this cooperation, they’re thrilled to have Burberry on board as their companies break new ground together, with the first NFTs for Burberry, and the first luxury fashion brand in Blankos block Party. They said that player ownership is the future of games, they are working on presenting players and collectors new ways to engage with and even own a piece of the brands they love.
Another Japanese sportswear and sneakers brand Asics also launched the Sunrise Red NFT series, the first sneaker NFT. Asics plans to use proceed from this auction to invest in world-class digital artists that share their vision and passion. It will be used to create the Asics Digital Goods Artist-in-Residence program which will invest in the next generation of digital shoe artists. Asics illustrated Sunrice Red NFT collection as a first step in building a future where digital goods inspire love for physical activity as digital experiences continue to attract increasing attention. For these fashion brands, their attempt at technology is the embodiment of their pursuit of innovation and the fashion trend. Making money might not be their ultimate goal: The vision is to break boundaries for digital goods, realize the value of digital art, and truly realign digital fashion.
What does NFT mean to the fashion industry?
NFT is growing rapidly in the fields of art and sport, but it is still in its infancy in the fashion industry. However, fashion brands never stop being creative. Supporters of fashion brands embracing blockchain argue that NFT is the next evolution of digital fashion and that its scarcity and ability to accumulate value can bring digital fashion closer to ‘real fashion’. The cross-border interaction between luxury brands and NFT is a reflection of brands’ creativity and freedom ideal, and a way for brands to create new possibilities and explore the world.
Admittedly, traditional luxury has a certain exclusivity, while NFT allows more ordinary people to enter the fashion field. It preserves the individuality of the product while protecting the creativity of the designer. Like luxury goods, NFT also has the potential for long-term appreciation.
The value of Fashion NFT, as a new form of art, is more in investment than practical daily usage. However, Gucci, Burberry, etc.‘s exploration says that they bet on digital fashion and potential transformation of the luxury industries. As the consumers spend more time in the digital space, fashion NFT can bring the brands closer to consumers. Luxury brands can use NFT as another way of interacting with consumers, generating ‘priceless’ value and experience, increasing brand awareness, and stimulating interest.
NFTs create unique, timeless value: Something luxury brands can’t miss.