Authentication and tracking of goods Counterfeit goods are a major problem in the luxury world, with the global market for counterfeit luxury goods reaching $ 3.1 trillion . In this context, NFTs can be a good solution to authenticate and track high-end products, as Nike has done. In addition to physical sneakers, the brand offers its customers a digital version of the product. Ownership of the physical and digital sneakers is transferred together and stored in a “ digital locker, ” a kind of cryptocurrency wallet. By storing information in the blockchain, consumers can authenticate a luxury product, learn about its history, previous owners, and more.

Also, according to ArtGrail representatives, taking a bogus NFT off the market is easier than tackling physical fakes or dealing with sellers like Latvia Phone Number List eBay. 2. Pay royalties to brands on each resale As with art, NFTs can be used to pay royalties to the original artist or brand that created the products. According to CPP Luxury, the global market for second-hand luxury clothing, footwear and accessories is worth $ 30-40 billion , and continues to grow rapidly with big players like Vestiaire Collective. As the terms of resale of an NFT can be predetermined and encoded in the blockchain, brands could receive royalties on each resale .

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Because Unlike Humans, Computers Do Not Make Errors Unless They Are Programmed.

3. Sell luxury collectibles Another way to use NFTs in the luxury industry is to create digital collectibles, unique or limited edition pieces that increase in value due to rarity. For example, Jacob & Co created the world’s first NFT luxury watch , as presented by the NFT ArtGrails platform. This watch is inspired by the house’s flagship product, the Epic SF24, which now sells for over $ 100,000 . Although the starting price for the 24-hour auction was $ 1,000 on April 7, the highest bidder offered $ 100,000 for this watch, making it a hot topic around the world. 4. Create and sell digital products Clothia, a small luxury brand, is auctioning NFT dresses starting at 3.5 ETH ($ 8,346.59).

And it offers winning bidders both the physical product and the digital representation, both of which are unique items. “NFTs could be similar to the way fashion brands view gateways or broadcast channels. In the same way that a Chanel lipstick is more accessible to customers than a Chanel handbag, luxury brands can use NFTs to allow more customers to access their brands ” said CEO Elena Silenok . 5. Virtual products for games and avatars Luxury brands are also showing interest in esports , as it is a thriving industry with revenue of $ 1.1 billion in 2020 and a fan base of 5 million .

It Contributes To Better Decision-making Because It Eliminates Emotional Factors And Bases Its Choices Only On Data And Models.

Examples include Louis Vuitton’s collaboration with League of Legends , Valentino, Marc Jacobs, Anna Sui, Givenchy, and Gillette Venus with Nintendo’s popular Animal Crossing game. The digital products provided by these brands allow gamers to shop and choose their favorite branded outfits, even pamper the characters and add human-like characteristics to their avatars. With NFTs, buyers will be able to resell these digital products securely. 6. Collaborations with artists An interesting way to use NFTs in luxury marketing is to promote collaborations between brands and artists.

For example, design studio Rtfkt and teenage digital artist Fewocious released an Air Force One-inspired sneaker model, the surface of which is covered in scribbles. These sneakers are priced at $ 3,000, $ 5,000, and $ 10,000 a pair, which is more expensive than physical sneakers. Despite the staggering price tag, 621 pairs were sold for a total of $ 3.1 million . 7. Virtual try-out and personalization In order to make the most of NFTs, luxury marketers take advantage of complementary technologies, including virtual fitting and personalization. Once you’ve successfully created a new design, like shoes, digital lipstick color, filter, or iconic garment, your customers will be able to wear them through virtual try-on technology.

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