In an article on Drapers, HTEC explains why NFTs (non-fungible tokens) are being adopted by fashion retailers.
Why the topic matters: NFTs in fashion retail allow brands to create and sell digital items and certify the authenticity of physical products. More luxury brands are turning to NFTs to generate new revenue streams and improve customer loyalty.
The big picture:
- An NFT’s core offer is uniqueness – a one-of-a-kind digital file that will last forever by residing on a blockchain ledger.
- NFTs in fashion retail are inspired by gaming culture. The gamified tactic of “scarcity”, entrenched in the fashion industry through collectibles and limited editions, can now cross the “phygital” divide with NFTs.
- The real driver for NFTs in fashion should not just be marketing, but also a brand’s long-term digital vision.
- If we ignore NFTs in fashion retail, they may follow the same path as other nascent technologies (VR anyone?).
- NFTs may not be a silver bullet, but they are a powerful weapon to be embraced by fashion retailers now.
Go deeper: Read Drapers’ article to learn why NFTs are becoming a powerful tool for retail.
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