What is an NFT and What Does it Have to Do With Fashion?
Courtesy of The Industry Fashion
Written By: Mariel Persico
Change is nothing new in the fashion industry, but rather a defining feature of it. Every season designers come out with brand new collections and initiatives, constantly trying to stay in line with trends and the demands of consumers. For example, sustainable fashion and gender-free clothing have been on the rise over the past few years. However, one particularly different venture in the industry has been its presence in the metaverse, or virtual universe, and designers’ use of NFTs.
An NFT, or a non-fungible token, is a unique and specific code that can not be replicated or copied and represents some kind of item. An NFT can be art, music, or even an object. They can be bought and sold on online platforms such as OpenSea and Foundation with cryptocurrencies such as Ethereum or Solana.
While the first-ever fashion NFT was a dress sold in May 2019 by The Fabricant, the first luxury brand to experiment with NFTs was Gucci in May 2021. The NFT was a four-minute film that sold for $25,000. Gucci has continued to create NFTs, with the recent three-part collaboration between Superplastic and themselves. Superplastic is an entertainment company that creates toys, digital collectibles, apparel, and games. The first drop took place on February 1st with the NFTs containing codes found in the Gucci Aria collection and a white ceramic sculpture.
As a way to celebrate Louis Vuitton’s 200th birthday, the company launched a video game in August 2021 called Louis the Game, which is embedded with NFTs. However, these NFTs are only available in the game and cannot be sold. Later in September 2021, Dolce and Gabbana launched 9 NFTs, 5 physical and 4 virtual, that sold for over 5 million dollars. The owners of the physical NFTs received the items as well as access to select Dolce and Gabbana events.
You may already be familiar with the Metaverse Fashion Week from Villanova BOF’s recent blog post. But if not, two weeks ago the first-ever Metaverse Fashion Week took place and featured tons of NFTs and exclusive drops. Estée Lauder gave out 10,000 complimentary NFTs inspired by their face serum to attendees. The attendees that received one, got their avatar’s face to have a glow representing that from a serum. Tommy Hilfiger was another brand that joined in, selling NFTs that were redeemable for real-life hoodies.
While designers are finding pros to the creation and selling of NFTs, designers such as Hermès have experienced some downsides. In January 2022, Hermès announced that they were suing artist Mason Rothschild due to his NFT creation of the MetaBirkin. These NFTs are not physical handbags, but rather digital images of Hermès’ timeless Birkin bag with a modern spin including striking patterns and fur. The company is suing on the grounds of trademark infringement, but Rothschild is arguing that the First Amendment protects him.
Designers’ leap into a digital world is partly a way to tap into younger generations that are more familiar with and accepting of modern technology. However, companies should be wary of backlash from older generations and loyal customers. This has been seen before in Tiffany & Co.’s “Not Your Mother’s Tiffany” campaign in the summer of 2021 which angered many past customers and mothers that felt dissed by the company they once loved.
The fashion industry’s access to the metaverse is an economic opportunity that companies can use to grow. So, despite challenges and backlash, luxury brands are destined to continue their presence in the metaverse and creation of NFTs in the coming years. All the digital advancements we have seen so far are just the beginning of what the metaverse has in store for fashion.