The fashion industries are entering the NFT business!

To best satisfy consumers, brands, regardless of their sector of activity, invest in areas of interest to them. The cryptocurrency and NFT (non-fungible token) industry is one of these areas. While this industry has several detractors, it is also very popular and many companies are aware of its potential. Also, to stay competitive, fashion industry brands have decided to enter the NFT industry.

Fashion brands offer NFT collections

On July 7, the MoneyRadar account shared on Twitter a graph showing that 17% of luxury goods consumers consider a brand’s engagement with NFTs as one of the things that interests them most. It seems that big brands like Gucci, Louis Vuitton, Adidas and Nike have entered this new market and this could greatly improve their competitiveness.

Furthermore, Young brands are also entering the industry. For example, there is the Maachi brand that offers NFT on the high-end clothing it offers. The clothes are of different types: embroidered, woven, patterned, etc. That said, according to Shopify, consumers are more likely to become ambassadors of a brand they own NFT for. NFTs then drive customer engagement.

Also, non-fungible tokens give more value to the brand and allow you to preserve and improve interactivity with customers. As proof, after announcing its NFT collection, the Lacoste brand has seen the number of subscribers increase significantly.

NFTs could revolutionize the fashion industry

You should know that most of the luxury items available on the world market are counterfeit. One study found that in 2019, there were $ 4.5 billion worth of fake luxury goods on the market, or 60% of global trade. That said, NFTs have the potential to revolutionize the fashion industry in a number of ways. To begin with, they can be used for guarantee the traceability of available items in the resale market. They will also make it possible to guarantee the originality of the latter.

Second, fashion brands can use digital collectibles to increase sales by attracting new customers. These items, like digital membership cards, are effective for strengthen its presence on the market. On the other hand, in the fashion industry, there are hybrid NFTs. With these non-fungible tokens, consumers have the ability to get the physical version of the digital item they purchased.

Finally, some brands face stock shortages on a regular basis. Their items are then resold at double the price on the secondary market. Using hybrid NFTs it is possible to obtain a percentage of royalties on these transactions.

The luxury fashion industry faces several challenges and NFTs could help address them. Big companies and new fashion brands have understood this. They then started to launch ever more creative NFT collections that appeal to consumers.

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