Blockchain technology has been advancing very fast in the recent past. The market has moved from fungible to non-fungible tokens to create value for their brands. This cryptographic asset based on blockchain technology comes with unique identification codes and metadata that opens multiple opportunities for businesses.
Brands can use NFT technology to add value to their brands, increase brand visibility, and provide unique experiences for their customers. Here are five lessons fashion brands can learn from others that have succeeded in using NFT technology.
Like any other industry, any fashion brand that is looking to market to the young and hippy cannot afford to overlook the internet. One way it can connect with the market is by creating an online community. The online community can spread the word about the brand, have customers interact with each other, and create buzz for any new products that come from the said brand.
Brands can also use that community to offer early fashion drops, discuss future fashion concepts, and do test marketing and product personalization for specific markets. Given that the community is decentralized, the brand does not have to drive the narrative but can monitor what members are saying about various items.
One of the fashion brands that has mastered this is Mishka NYC. It has over 6,696 NFT that it calls The Keep Watch Crew, which has an eyeball logo. When one joins the community, they get entry to the Mishkaverse, an NFT metaverse world. This has created a global community of brand enthusiasts looking to enjoy lifetime discounts, and merchandise drops, and discuss the future of the brand. The community has been key to the brand’s marketing campaign and its visibility around the globe.
The fashion industry has long moved away from a one-size-fits-all mentality and toward exclusivity. Customers are looking for tailored experiences and customized products from their favourite fashion brands.
Fashion brands can tap into NFTs to offer users a chance to personalize their experiences in the virtual fashion world. The NFT collection can help strengthen individual customer connections as they are able to show off their brand-related cryptographic as a badge of honour.
Besides, owning a highly valuable NFT creates an emotional bond where customers get a reason to stay with the brand. This, in turn, can help enhance the lifetime value of individual customers. This is more like a follow-up program to keep the customers hinged on the company for as long as possible.
One brand that has mastered the art is The Hundreds brand. It released the Bomb Squad NFT collection a while back, with holders receiving exclusive benefits unavailable to conventional customers. For example, they had limited metaverse NFT drop offers only accessible to NFT holders. These holders also got exclusive access to new merchandise from the brand. The strategy has helped the brand engage and reward its leading fans.
Loyalty programs ensure that the brand is always in the minds of the customers. This gives the brands a competitive advantage over others as they get first consideration from the customer in question. One way NFTs can be used to drive customer loyalty is by giving customers early access to their products and admission to exclusive events in the real world.
The value of the NFTs can also be used to estimate the value of the discounts that will be offered to customers over the course of a couple of purchases. The community can also keep the customers “warm” when it is not producing new items.
A while back, Dolce & Gabbana introduced an NFT collection called Collezione Genesi. This NFT has several digital, physical, and experiential benefits for its holders. Physically, holders can enjoy the physical version of Dress from a Dream, which is custom-fitted and comes with an original signed sketch. Holders also get a custom recreation of their dress.
In addition, NFT holders receive two-year access to Dolce & Gabbana’s Alta Moda, Alta Gioielleria and Alta Sartoria, couture events that take place in Italy. This way, the brand stays in touch with its customers over a period of two years.
Fashion brands can use NFTs to unlock revenue streams for their brands even as they make physical offerings of their clothing. In this case, NFTs work as elements of the metaverse, where future customers can interact virtually. Fashion companies can join hands with gaming companies to enable the use of cryptographic tokens in gaming using virtual spaces as a new playground.
In the gaming world, customers can buy virtual clothes for their metaverse avatars. This increases customer exchanges and improves customer interactions. It also brings more income to the brand.
Nike pioneered in the race for NFT and Metaverse when it partnered with a gaming platform called Roblox. The gaming platform debuted with Nike’s NFT called “Nikeland.” Customers will Nikeland got a chance to choose from a wide range of pre-built games and were allowed to customize various aspects to meet their gaming preferences.
In addition, the partnership also offers customers accelerometers on their mobile devices that enable them to incorporate movements such as speed runs and long jumps into the mobile game. Besides, it has an immersive experience where customers can visit a visual 3D Nike metaverse where they can buy and dress their avatars. This clothing includes apparel, shoes and accessories.
Fashion brands can leverage fashion NFT to organize auctions and pre-sale of limited new product drops. They can also link each physical product to a unique NFT in order to add value or test customer interest in the same. The excitement that comes with product launches helps increase brand interest as well as sales volume. Customers who are already holders of the NFTs can then gain early access to future releases.
Adidas is one of the companies that has used this strategy to its advantage. The brand recently made its first metaverse NFT drop called “Into the Metaverse” in collaboration with PUNKS Comic, GMoney, and the Bored AP Yacht Club. This drop included a whopping 30,000 NFTs, where each of them was priced at $800 (which amounts to 0.2 ETH). From the sale, the company collected $23 million (equivalent to 6,000 ETH) in revenue.
According to Morgan Stanley, the metaverse represents a 50 billion euros revenue opportunity. With the growth of the metaverse, companies are taking advantage of the vast online world to create a community, improve their sales volumes, and manage part of the marketing costs. There is a connection between NFT and Metaverse as the former gives life to avatars and other activities carried on by the latter.
It is time for your fashion business to join the metaverse and follow in the footsteps of these established brands. SmartPixels does create 3D renderings of your fashion products so that they are available in your metaverse for use by your customers. This way, you can sell virtual products along with physical ones, engage and excite your audience, as well as push customer loyalty.
SmartPixels has the right metaverse equipment to create high-quality 3D NFTs, personalize your digital offers and create a choice of various assets. Contact us today for a demo and let us get your virtual world up and running before the competitors do.
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