- While 2021 has been a great start for NFTs, their utility will be the most important in the upcoming years. Fashion NFTs won’t just be JPEGs. People will be able to wear them in the metaverse and get VIP access to chosen events thanks to the ownership.
A few years back, people could hardly imagine the existence of some NFTs. Now, fashion non-fungible tokens (NFTs) became the hit of 2021 as well as other kinds of NFTs. 2021 was a good start for fashion NFTs, but bringing utility to them is the key for their functioning so people get more interested in them.
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Utility In Fashion NFTs
A number of mainstream brands have begun launching NFTs. According to recent research from Bain & Company and the online luxury fashion platform Farfetch, digital interactions with consumers are becoming increasingly important for brands. The report specifically states that “digital interaction with peers is on the rise when choosing to purchase a product.” As such, NFTs tied directly to brands and their consumers are now more important than ever before.
While it’s notable that mainstream brands like Adidas, Dolce & Gabbana, and others have already released NFTs, the utility behind NFTs is proving to be the real key to a fashion brand’s success. Karinna Grant, co-chief executive officer of The Dematerialised, a digital fashion marketplace, told that utilities are what give NFTs the real purpose and value.
“Just as in real life, where a physical card can scan you access into a club, a utility can be anything from using the NFT as a membership pass to the ability to wear an asset in a game, or incorporating a sustainability or social responsibility benefit for purchasers of the NFT.”
2021 has been the year of testing NFTs where companies tried wearing and playing with 3D assets in augmented reality (AR) or getting access to communities. The next years will be a time when fashion NFTs will get a utility like VIP access. For example, „Karl Lagerfeld’s „x Endless“ collection provided an opportunity for owners of Karl collectibles, an IRL, and a URL ticket to a brand event in Paris in 2022, which will feature another launch where only Karl holders will be invited to take part.
It’s become clear that fashion NFTs must offer some type of consumer engagement, allowing brands to interact with individuals in both the physical and the digital worlds. While the utility of some NFTs can simply be for the sake of art, brands launching NFTs require deeper functionality built upon an existing community.
Metaverse Utility of NFTs
The fact that brands must now interact with consumers both virtually and in real-life has also added an extra layer of technical utility to NFTs. Brands need to start interacting more with customers in the virtual world more than in real life as we spend more time online than ever before. While people were happy to get their hands on any kind of NFT in 2021, next years will be more about utility.
Collectors will require VIP access to fashion shows, metaverse events and the possibility to wear their fashion NFT. Brands will need to adapt to new conditions and it won’t be just about JPEGs.
The rise of NFTs in 2021 has demonstrated growth moving forward for major brands. Some of the biggest fashion companies have already taken steps to enter the Metaverse, it’s expected that more labels will follow this trend. This has become the case as the world moves toward digital business models, which have also been promoted by the rise of COVID-19. Mainstream adoption will come as more major fashion brands, influencers and creators get all involved together.
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author: Rene Remsik
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.