Unboxing the luxurious experience of NFTs
Are luxury goods in desperate need of a makeover? Possibly.
The luxury market had been at the brink of change before the pandemic, and while the closing of boutiques across Europe’s capitals hit the market hard in 2020 ( along with the lack of Chinese consumers in the West due to travel restrictions), it found a life saver - a light at the end of the tunnel - in the marvelous e-commerce.
Credit: Louis Vuitton
Just at LVMH alone, the fashion division went up 12% in sales against all odds, but the market still had an issue to solve: counterfeiting.
For decades, replicas of bags, wallets, shoes and even sunglasses by the biggest brands have been stacked in local markets all over the world where, sometimes, the fraudsters do such a good job, that items seem just as luxurious as the originals.
Customers may not get the glamorous in-store service, or the dreamy unboxing experience, but the result is the same: a well-curated Instagram post where the counterfeit product is the star of the show.
Exclusivity is compromised by counterfeiting, not to mention that the fashion industry lost more than €26.3 billion in 2020 due to pirated products.
But there happens to be a way to easily authenticate luxury goods, track them, sell them and even tie them up to incredible experiences.
Here come NFTs.
Copyrights cannot be ignored in the blockchain, and a digital certificate will forever authenticate the digital asset. Designers’ creativity is automatically protected, and the product’s exclusivity is preserved. This represents an opportunity for the luxury market to link physical products to digital twins. A gown could have its digital version in an AR filter that unlocks for the NFT owner.
AR Filter available exclusively with mine and @charlicohen new #NFT available at @knownorigin♬ Beggin' - Måneskin
Designers could defy the laws of gravity and create exclusive digital designs that could never exist in the physical world. Brands could come up with exclusive artworks that tell the stories behind a product. Customers would not only want the exclusivity, but they would also treasure it for generations to come.
As the world is pushed towards an immersive digital future, and as the luxury goods market finds its way into a path of self-reinvention, NFTs are here to take it to a new era of trusted, clear and ethical consumerism.
To discover more, join our FashionFridays “Conversations With”, a series of IG live sessions with designers, brand consultants, and creatives, to start meaningful conversations about the future of fashion.
Article written by Edua Sykes
KnownOrigin’s Digital Fashion Consultant
Article by Edua Sykes
KnownOrigin's Digital Fashion Consultant