Digital luxury: the possibilities of using NFT
More recently, we associated the word “luxury” with an expensive car, luxury clothing, luxury real estate. Now the trends have changed and with them the elements that define a person’s wealth. Much more prestigious is a digital luxury, which gives the opportunity to have not a certain object, but the entire technology and data. And this approach allows the use of all the charms of luxury products, regardless of their physical realization.
Innovations help in offline sales as well. Jewelry manufacturer Tiffany offers its customers an app for ring selection. Thanks to augmented reality technology, you can try on any item and then come to a physical store to buy it or make an online purchase.
A growing trend is NFT – non-interchangeable blockchain-based tokens. Thanks to them, it is possible to simplify the verification of art objects for authenticity, to identify the identity of the owner. NFTs of famous paintings are already being sold at major auctions, such as Christie’s. According to analysts at Morgan Stanley, the share of NFT in the global luxury goods market could reach 10% by 2030 and reach $50 billion.That said, this kind of tokenization is not just used for artwork. Thanks to NFT, brands offer personalized closet lines. This is what Overpriced did, which sold its virtual hoodie for $26,000.
An important point about using NFT is its contribution to environmental strategy. At the request of the owner of the digital original, companies produce its physical version, and modern sparing technologies, such as 3D printing, are used for this purpose. This option avoids producing a huge number of identical items, reduces overstocking, and reduces the problem of disposal.
Metaverses are an ideal platform for selling digital goods, including luxury ones. Many well-known fashion brands offer their users exclusive collections. A character in the virtual world of Fortnite can be dressed in clothes from Balenciaga, and in Blankos Block Party – in skins from Burberry. More and more brands are moving into the NFT format, offering players a variety of accessories and merchandise. Demand continues to grow, opening up more and more opportunities for manufacturers. Epic Games, which develops the games, has partnered with various fashion houses, including Balenciaga and Louis Vuitton. Together, they will create metaverses and the attributes for them, for which the studio has already allocated $100 million.
Digital luxury goods are more than just expensive items. Using them in a virtual space allows the player to realize various fantasies, fulfill dreams that are impossible in the real world.