Unlocking utility is the key to fashion brands launching NFT in 2022

Non-fungible tokens (NFT) have become one of the most discussed markets in the crypto sector this year. A recent report by Cointelegraph Research found that NFT sales are The goal is to set a record of $17.7 billion By the end of 2021.

This is likely to be the case, because many mainstream brands have already begun to introduce NFTs. according to According to recent research by Bain & Company and the online luxury fashion platform Farfetch, digital interaction with consumers is becoming more and more important for brands. The report specifically pointed out that “digital interactions with peers are on the rise when choosing to buy products.” Therefore, irreplaceable tokens directly related to brands and their consumers are now more important than ever.

Understand what the practicality of fashion NFTs means

It’s worth noting that mainstream brands such as Adidas and Dolce & Gabbana have already released NFTs, but it turns out that the utility behind the non-fungible tokens is The real key to the success of a fashion brandKarinna Grant, the co-CEO of The Dematerialised, the digital fashion market, told Cointelegraph that the utility provides irreplaceable token use and value:

“Just like in real life, a physical card can scan you to enter a club, and the utility can be anything, from using NFT as a membership pass to the ability to wear assets in the game, or combining sustainability or social NFT buyer responsibilities Benefit.”

Grant pointed out that The Dematerialized has tried various forms of utility for every fashionable NFT launched on the platform. She explained that previous versions included utilities, such as wearing or playing with 3D assets in augmented reality, or unlocking access to the brand community. “With Rebecca Minkoff’s NFT series sold out in September, the highest level of NFT unlocked VIP access for a year of brand experience.” She added: “Karl Lagerfeld’s “x Endless” series is the owner of Carl’s collection Provided an opportunity, IRL and URL tickets for the brand event to be held in Paris in 2022, the event will be launched again, and only Karl holders will be invited to participate.”

Obviously, fashion NFTs must provide some type of consumer engagement, allowing brands to interact with individuals in the physical and digital world. Avery Akkineni, president of NFT consulting agency VaynerNFT, told Cointelegraph that although some of the NFT’s utility may only be for art, Brands launching NFT need deeper functionality Build on existing communities.

For example, Akkineni shared that VaynerNFT recently helped the global fashion brand Coach launch its first NFT series. Featured Eight Coach Holiday animals from the brand’s Syracuse digital game. Akkineni added that the NFT was also launched to celebrate Coach’s 80th birthday, which resulted in the creation of 80 unique digital art works, including eight Coach holiday animals.

“Bella Penguin” in the Coach NFT series. Source: VaynerNFT

Akkineni explained that each digital Coach NFT also grants the initial holder the right to a customized physical rogue package for free in 2022. A way that will not commercialize their intellectual property or require consumers to pay anything,” she said. In order to effectively interact with the Coach community, Akkineni mentioned that Coach NFT was given away for free from December 17 to 24 this year. :

“Coach NFT can be claimed on the Polygon blockchain. Coach makes sure not to commercialize prematurely and understand the space to measure demand and see if their audience is interested in NFT.”

Fashion NFT must also play a role in Metaverse

The fact that brands must now interact with consumers in virtual and real life also adds an extra layer of technical utility to NFT.As Bain & Company’s latest luxury Report Pointed out, “As the industry develops and develops, new keywords and phrases—such as metaverse, large-scale personalization, and technology stacks—will stand out.”

Therefore, some companies have begun to explore NFT in Metaverse. For example, Pet Krewe, a pet clothing e-commerce company, recently opened a digital commercial space called “ShibaVerse” in the Metaverse community. Allison Albert, founder and CEO of Pet Krewe, told Cointelegraph that the company is promoting its brand by displaying its NFT pet clothing in Metaverse, which contains balloon dogs called “Shibaloons.”

Source: Petekru

According to Albert, Pet Krewe’s NFT will be worn as a unique design for Shibaloons. Although Albert pointed out that these clothes can be replaced on different Shibaloon dogs in ShibaVerse, Pet Krewe is using this digital commercial space as another form of brand participation or marketing. “We can establish contact with dog-loving customers in the dog-centric Metaverse. This is to reach our customer base with completely different marketing elements.”

The 18-year-old fashion brand Mishka has also entered the NFT field with its famous eyeball logo. The collection of 6,696 NFTs is called “The Keep Watch Crew”, or “KWC” for short. Greg Mishka, the founder of Mishka NFT and Keep Watch Crew, told Cointelegraph that Keep Watch is the most iconic and well-known brand element, Mishka, for fans, streetwear and fashion communities.

Andy Milonakis KWC NFT.Source: Mishka

Given the brand’s strong user base, Mishka explained that KWC NFT is the next chapter of the brand. “KWC is your ticket to what we like to call MIHKAVERSE. Instant utilities include lifetime discounts and exclusive merchandise,” he explained. Mishka added that the tag is working hard to integrate Web3 elements into their website. “This will allow consumers to verify the NFTs they own in order to access exclusive pages and drop through the website.”

Should fashion NFT still be linked to the real thing?

Although the purpose of fashion NFT is not only to provide digital goods related to physical goods, some people in the industry believe that this is still one of the most important functions. For example, Grant pointed out that connecting physical items to digital NFTs is a key part of the adoption process for all types of non-fungible tokens. She elaborated:

“We have a very interesting split view of the current community, half demanding more entities, half demanding more digitalization. However, when we surveyed outside the current community, the number is much higher. This makes sense. , Because first-time or new NFT owners often still hold the more traditional belief that physical products are more “valuable” than digital products.”

In response to Grant, Mishka commented that it is important to have physical items that can be claimed or obtained by obtaining something in Metaverse, because most consumers still live in the “real world.”

This is why it is not surprising that mainstream fashion brands like Coach give away physical customized rogue bags to NFT holders. Interestingly, Akkineni mentioned that sometimes NFT holders will not redeem their physical items, as it turns out, the same is true for other drops related to consumer-facing brands. “VaynerNFT has carried out a collaboration called “Anwar Carrots x Veefriends”, which is a series sold in Nordstrom and available to all “Self-Aware Hare” NFT holders. Only after some reminders, the holders I did claim the real thing,” she commented.

Fashionable NFT will become a trend

The rise of NFT in 2021 is a testament to the growth of major brands.Although companies like Nike have taken Steps to enter the metaworld, More tags will follow suit. As the world shifts to a digital business model, this situation has become a reality, and the rise of COVID-19 has also promoted this model. For example, Albert explained that Pet Krewe is still not sure how COVID-19 will work in 2022, noting that the current supply chain is still disrupted:

“We need to hedge bets on alternative sources of income. Entering a Metaverse that fits our company’s values ​​means that we can add additional sources of income through artistic NFTs and digital wearables.”

Grant further commented that The Dematerialized is excited about “behavior-changing releases,” which includes using NFTs to disrupt physical production methods. However, it is important to point out that the brand will face challenges in this process.

Grant stated that fashion brands will encounter three major obstacles. The first is a shift in thinking about the value of Web3 and digital ownership. Second, Grant explained that it’s important to understand the purpose and narrative of the NFT release: “We support releases that are part of Web3’s long-term strategic commitments, not marketing gimmicks designed to temporarily increase revenue.”

Finally, Grant pointed out that it will be challenging for major brands to ensure a 3D asset design pipeline internally. However, Grant remains optimistic that these challenges will be resolved: “With the participation of more major fashion brands, influencers and creators, mainstream adoption will come.”