What is an NFT?

NFT stands for Non-fungible token. Non-fungible means that only one of its kind exists. It cannot be duplicated or exchanged for one or many of the same kind. NFTs exist in the blockchain ecosystem, similar to cryptocurrencies. However, unlike cryptocurrencies, which work similar to physical money, NFTs cannot be multiple of the same.

So what can an NFT be? An NFT can be anything produced or stored digitally. It can be art, music, software, and even virtual assets. There can be digital iterations of fashion objects (like clothing, shoes, bags etc) created as NFTs. Which is exactly what fashion brands are doing currently.

So what is the Lifecycle of an NFT like?

1. Creator or Brand make a Digital Asset
2. Creator selects a marketplace
3. Creator uploads the Digital Asset on Marketplace to convert an NFT on a blockchain
4. Marketplace puts the NFT in Creator’s crypto wallet
5. Buyer buys cryptocurrency on the same blockchain as the desired NFT
6. Buyer creates a crypto wallet and adds the cryptocurrency to their crypto wallet
7. Buyer goes to the Marketplace
8. Creator and Buyer exchange NFT and cryptocurrency
9. Buyer can either use the NFT, or then try to resell it on the Marketplace

Note: Creator’s and Buyer’s wallets are linked to the marketplace

How are fashion brands entering the world of NFTs?

In May 2019 the first ever digital Fabricant-designed ‘Iridescence’ dress sold for $9500. It was a first-of-its-kind blockchain transaction. Fabricant is a fashion house that started making digital-only clothing. By the end of 2021, multiple #nft collections were launched by fashion, sport, beauty and luxury brands. Initially these brands tested the market by experimenting with small projects.

For example, Clinique launched a contest in October 2021, giving a chance to win Clinique’s first NFT and an assortment of products for the next decade. In June 2022, Clinique was back with a new initiative, “Metaverse More Like Us”, an NFT initiative to celebrate diversity and individuality. For this project Daz 3D minted 1968 makeup looks and randomly allocated them to existing owners of non-fungible people (NFP).

Burberry launched its first NFT in August 2021 in collaboration with Mythical Games, a limited-quantity Burberry Blanko – a shark named Sharky B – an NFT that can be purchased, upgraded, and sold within the Blankos Block Party marketplace. In June 2022 the brand announced a second release of Blankos Block Party NFT collection.

Prada Group is the only brand with a monthly launch of the NFTs. Prada did an upgrade of its Timecapsule initiative, where starting from December 2019, every first Thursday of the month Prada is launching one product which is available for purchase only for 24 hours. Burberry had a similar initiative in 2018, The B Series by Riccardo Tisci, with product release only for 24 hours via Burberry’s Instagram and WeChat.

Here are some NFTs projects that have been launched by fashion brands in in 2023:

• Balenciaga launched a collection of NFTs called The Hacker Project that reimagined some of the brand's iconic pieces in a pixelated style.
• Burberry launched a collection of NFTs called The Metaverse Fashion Show that featured digital versions of the brand's clothing and accessories.
• Fendi launched a collection of NFTs called FendiVerse that allowed users to create their own avatars and interact with the brand's virtual world.
• Jimmy Choo launched a collection of NFTs called The Metaverse Shoe that featured a digital version of the brand's iconic Choo90 pump.
• Prada launched a collection of NFTs called Prada Timecapsule that featured a new digital artwork every month.
• Versace launched a collection of NFTs called The Versace Mansion that allowed users to explore a virtual version of the brand's iconic New York City flagship store.

How are brands ‘rewarding’ NFT owners?

Prada

Since June 2022, the customers of the Prada Timecapsule limited-edition physical item are gifted NFT. The drop in August featured 50 patchwork shirts. Buyers of these shirts received a complimentary NFT and had a chance to attend Prada’s September 2022 runway show for Spring 2023 in Milan. On October 6 2022, Prada unveiled drop #34 through which fans could join Prada’s Crypted community. The exclusive community gives members access to Prada events. For example, holders of the drop #34 could get a chance to attend the brand's “Prada Extends” celebration in Miami.

Dolce & Gabbana

DGFamily Boxes are NFTs that serve as tiered membership to the exclusive digital, physical and experiential privileges offered by the brand. This project was launched in partnership with UNXD, a marketplace that curates digital luxury products. The website of UNXD informs that DGFamily members will have access to a series of exclusive drops featuring both digital and physical wearables, including an exclusive Dolce & Gabbana swag pack. These bespoke creations won’t be available anywhere else. DGFamily boxes are based on the classic Italian Carretto style, and crafted in three increasingly rarer tiers.

Two claimable bonus airdrops have already been announced. A collection of digital wearables first showcased during the Metaverse Fashion Week in Decentraland (March 2022), as well as a bespoke capsule collection of both digital and physical items (t-shirts, hoodies, and sneakers, depending on the Box tier) personally designed by Domenico Dolce and Stefano Gabbana.

There will also be a roadmap of both digital and physical events/experiences that take place across the year. The Black Box holders are granted access to all digital experiences, whereas Gold and Platinum also gain access to IRL events. Two IRL events have already been announced: an event in New York during NFT NYC in June, and an event in Miami in December during Art Basel.

Gucci

In October 2022, Gucci became the first brand to build its own space within the digital real estate platform The Sandbox. Within the concept store called “Gucci Vault Land”, the brand offered a play-to-know mode, where completion of tasks gave users rewards and The Sandbox’s token SAND. The Sandbox is built on Ethereum Blockchain. Within this virtual space, there were also digital collectibles. Gucci NFT holders are a part of the Gucci Vault community. Having these NFTs in their crypto wallets also gave these holders the opportunity to receive a Gucci Vault Aura collectible, a digital wearable for their avatars on The Sandbox.

Tiffany & Co.

In August 2022, Tiffany & Co. launched a special NFT project in collaboration with CryptoPunk. CryptoPunk is a highly sought after series of 250 NFTs. The owners of CryptoPunk NFTs were eligible to buy the new NFTiff collectibles. NFTiffs represent a collection of 250 digital passes, offered by Tiffany & Co. which may be minted when purchased and redeemed by CryptoPunks holders for the creation of a custom designed pendant and a NFT digital artwork that resembles the final jewelry design. The pendant will be designed and crafted by Tiffany & Co. artisans, and inspired by the Cryptopunk owner’s Punk NFT.

Tiffany’s strategy was to make their NFT project very exclusive, and benefit from the existing popularity of CryptoPunk NFTs. The campaign received extensive marketing coverage, as the collectibles were Tiffany pendants priced at 30 ETH or $51,000 USD (at the time). The 250 pendants are made of diamonds, sapphires, amethysts and other precious stones and metals. The brand marketed it as a collectible, however, the ownership of NFTiff pedants will act as a pass for exclusive offerings in the future by Tiffany.

Article Image: The Fabricant