NFTs, or non-fungible tokens, give digital objects a unique digital identity, assigned via the blockchain. This means that digital objects gain properties once relegated to physical goods, such as scarcity and unique ownership. The first recorded sale of a NFT fashion was the iridescent dress created by The Fabricant and sold for the equivalent of $9,500 in May 2019. The first participating luxury brand was Gucci’s Aria, which sold at auction for $25,000 in May 2021.
Since then, a growing number of brands have launched a wide variety of NFT projects, including Louis Vuitton, Burberry, Nars, Levi’s, Clinique, Dolce & Gabbana, Gap and Adidas. Balmain has released at least four NFT projects and counting. Data collected for the Business Vogue The index shows that 17% of brands in the index had worked with NFTs as of winter 2021. Already, strategies have evolved from art projects and digital collectibles to tokens that grant special benefits through elaborate partnerships and structures. “It will take time to find the right utility for NFTs, but brands need to start now,” Cathy Hackl, CEO of Futures Intelligence Group, said recently. Business Vogue.
