The biggest digital craze within the fashion, art, and design market
What are NFTs?
According to Forbes; NFTs are “a cryptographic asset created through blockchain technology”. The acronym NFT stands for non-fungible tokens. The non-fungible tokens were first introduced in 2012. Throughout 2017 the token slowly got popular (DeAcetis, 2021).
How do NFTs work?
First of all, NFTs are non-fungible and non-interchangeable (Perkovic, 2021). In the eyes of the collectors; each item is valued for its irreplaceability and outstanding uniqueness (Perkovic, 2021). Collectors can buy their unique virtual items and then, later on, they can sell their NFTs at a high price to gain a profit.
First Luxury Brand to Sell NFTs?
Currently, the digital token is booming in the fashion industry all thanks to Gucci. Gucci was the first big luxury brand to sell NFTs by introducing its exclusive Gucci sneakers into their NFT product offerings (DeAcetis, 2021). These specific Gucci digital NFT sneakers can only be worn virtually, just like a filter on Snapchat (Hahn, 2021).
Yearly Sales and Profits
In 2021, non-fungible token collectors/consumers profited $5.4 billion dollars in token sales (Browne, 2022). Currently, the NFT market is worth $17.6 billion dollars and is expected to rise (Browne, 2022). The non-fungible token is set to rise in sales and profits as the digital trend purchase is becoming more popular amongst big luxury brands.
Celebrities Influencing NFTs
Fashion companies and celebrities such as Snoop Dawg, Doja Cat, Jay Z, Grimes, and Paris Hilton are now investing and purchasing within the digital trend (Browne, 2022). Celebrities such as Mila Kunis and Gwyneth Paltrow are influencing and motivating more women to start investing in NFTs (Tiku, 2022).
Big Fashion Brands that are already onto NFTs
PACO RABANNE making use of its NFTs to purchase its fashion archives back.
NIKE shoe brand has acquired RTFKT, an exclusive brand known for specializing in digital sneakers. Automatically, this acquisition sets a high-status rank for Nike’s NFT sneakers (Pauly, 2022).
According to Vogue Business, “Gucci will launch its own virtual world on digital real estate platform, The Sandbox. As it expands its presence in the metaverse for its Gen Z-focused platform Gucci Vault” (McDowell, 2022). Gucci was one of the first big luxury brands to sell NFTs by introducing its exclusive Gucci sneakers (DeAcetis, 2021). The brand is set to continue growing its footprint even bigger within the virtual world.