Our deep dive series aims to provide in-depth analysis on important trends happening in the NFT space.
This week’s article was written by @CryptoGalPal
NFT Runways the Wave of the Future
It’s unprecedented that the luxury industry joins forces with blockchain technology to stay relevant and competitive in an ever changing world. One platform, one solution to merge buyers, sellers and top luxury brands is an ideal fit. Soon, time will tell what these have in store!
The Red Carpet is laid
There’s no doubt that NFTs are high on their list of priorities as a potential industry that needs to be explored and fully understood. In order to dabble in the land of cryptocurrency where old school meets the new kid on the block, is unquestionably a move in the right direction.
With the new norm, everything’s been thrust to the online world. And thanks to blockchain, development, research and business models are driven to stay engaging with an ever changing demands of the consumer and technology. It’s an integral part of any brand’s future success.
It’s all Gucci!
Blockchain is a young technology and NFTs are still in its infancy compared to the more senior and developed Luxury Brand Fashion industry which dates back many years. The french fashion house, Louis Vuitton dates back to 1854. Italian fashion houses Prada to 1913 and Gucci to 1921. Blockchain was born in 1991 by the visionaries Stuart Haber and W. Scott Stornetta and the first NFT ever launched in 2015 on the Ethereum blockchain.
LVMH Moët Hennessy Louis Vuitton, is a French Multinational corporation and conglomerate specializing in luxury goods. The company was formed in 1987 and headquartered in Paris, France. On the New York Stock exchange they are a 319 Billion Market Cap representing The finest luxury brands in the fashion industry.
All the world’s a Stage
These two industries will in no time eclipse the selling of goods on a digital ledger, to prove the authenticity and traceability of its items. Combining online shopping, luxury brands and blockchain is a match made in heaven. E-commerce and blockchain to track and trace better than DHL, ordering online and shipped to your door. Also having the option of the digital versions of designs poses a unique angle in the market. Imagine your amazing virtual house in Decentraland, and your luxurious closet dripping in jewelry by Cartier, shoes by Christian Louboutin, suits by Tom Ford or dresses by Givenchy and Oscar de la Renta.
NFTs are the Lamborghini to the Fashion World’s slower moving Rolls Royce
The luxury sector’s main concern is traceability and authenticity. The innovation of blockchain technology and the exclusive pillars of luxury brands can take the world by storm. Gucci recently confirmed to Vogue Business that it’s “only a matter of time” before a brand like Gucci will release an NFT. And other major fashion houses soon to follow. Question is, who will jump first? Will the new crypto wealthy be eager to show off their newfound wealth by having Gucci NFTs in their cryptocurrency portfolio?
Luxury brands have been behind in the e-commerce trend, therefore they are very eager to move with the new wave and rage of cryptocurrency and NFTs. Technology is moving much faster than the fashion industry can keep up with, so best to start the wave and develop and integrate with it than be resistant. A dynamic interactive easy user experience with a blockchain type NFT version of Net-a-Porter is the apex of multi-sensory application of Luxury brand shopping at your fingertips. From the runway straight to your digital wallet!
The luxury market drives on the psychology of affluent consumers. When they feel good about themselves, and financially sound they indulge more. And when they don’t, they won’t. In the fashion industry they target those known as HENRY’s = High Earners Not Rich Yet, who have disposable income to facilitate a lifestyle they’ve always dreamed of. As a result, these fashion houses target HENRY’s disposable income to fulfill an emotional need that triggers and indicates success to the masses!
Digital Worlds and Digital Closets
There is a potential of exponential growth for these fashion houses to whomever launches the first luxury NFT marketplace and tweaks to be the forerunners in the industry. Virtual worlds like Decentraland, Crypto Voxels and Somnium Space could display digital closets, and other auction NFT places like SEEN Haus could ship out items to your doorstep. Paying the same attention to detail, design, uniqueness and authenticity to keep its exclusivity and rareness to the upper class, the crypto wealthy and celebrities, too.
To ensure premium exclusivity is a must for Fashion brands to work directly with a marketplace. To trust those who upload to the blockchain ledger and from there track and trace the NFT with a unique digital signature. These transactions can be viewed online and keep its elite status. This is essential for anti-counterfeiting and true authenticity. One day soon, we will see Chanel, Louis Vuitteon and Tom Ford digital stores in Decentraland, Somnium Space and Crypto Voxels.
In conclusion, the Fashion industry’s main concern is a premium shopping experience, guaranteed authenticity and traceability. Thanks to blockchain technology this can now be done with NFTs. The Fashion industry can rest assured that this time they won’t miss the boat like they did with e-commerce.
These two worlds are poised to cause a tsunami effect in the fashion industry and NFTs alike!
