Being stylish used to be all about the clothes or accessories you put on. This is not entirely true anymore, it seems.
Fashion brands and labels are now also creating NFTs (non-fungible tokens). These are viewed as must-have items.
What exactly are NFTs you ask? Simply think of them as virtual assets that can be showcased and used online. Encrypted with blockchain technology, it makes them unique and the digital signature uncopyable.
The functions of NFTs vary, but most take the form of images, videos, music or in-game items – although, in fashion, they offer bragging rights more than anything else.
“If you own a Dior bag, for example, the idea is that you love the brand. You’d want to show it off and shout, ‘Hey, look at this.’ But you have to effectively ‘flex’ in the real world to people you meet. With NFTs – although not wearable, you can do it virtually,” explains Hugh Koh, co-founder of Pestle & Mortar Clothing.
The Malaysian streetwear label recently became the first local fashion brand to launch an NFT collection.
Read more: Streetwear is now fashion's new luxury, and Malaysia isn't left out of the scene
“When it comes to a fashion product, it is about wanting to create a statement. NFTs allow us to do the same, but online, where our lives are so ingrained at the moment,” Koh adds.
More brands are jumping on the bandwagon lately and people are going crazy over the new launches, treating NFTs like limited edition bags, shoes or watches.
Fashion in a different form
Whether this is a passing hype in fashion or not, only time will tell. However, for now, NFTs are definitely the industry’s “new black”. When the Karl Lagerfeld brand launched its first NFT collection last September, all 777 digital figurines sold out in a mere 49 minutes.
Owners can either share their purchase on Twitter, capture it in AR (augmented reality), showcase it on their blockchain profile or access the AR version of the iconic designer via Snapchat.
Burberry’s NFTs, released in August last year, were fully snapped up within 30 seconds. There were 750 units available and each person could buy a maximum of four.
These exist within Blankos Block Party, a multiplayer game featuring digital vinyl toys. Each can be upgraded and sold within the virtual world’s marketplace.
When Louis Vuitton launched its own video game that same month, players could find 30 embedded NFTs as they traversed the world. Each NFT is a collectible that can only be found through playing the game, and cannot be sold.
In December, Coach unveiled an NFT collection featuring animals from its video game. While they function only as digital art, the fashion brand will be sending out one complimentary made-to-order bag to the initial holders.
The Pestle & Mortar Clothing NFTs have a more practical real-world use. In partnership with an alcohol brand, owners can redeem free beers or get entry to exclusive parties by flashing the digital tiger art image.
Koh, however, says that he plans to make them more functional fashion-wise. He is already thinking about launching more NFT collections.
“Maybe in the future, anyone who owns one of our NFTs can get the image printed onto a T-shirt via special order. It will be a unique, one-of-a-kind piece they can wear and be proud of,” he comments.
There are also plans to create a loyalty programme and invite those holding the Pestle & Mortar Clothing NFTs.
Most of the luxury fashion brands are embracing NFTs to capture the market of younger, more tech-savvy consumers. For those who are already operating within such a crowd though, it is about garnering widespread recognition.
Koh points to the borderless state of the digital world and says NFTs can help brands like his capture a more global audience.
“A Pestle & Mortar Clothing virtual store selling NFT clothes is also a possibility – whether for your avatar, or maybe products for your virtual home,” he adds.
“The ecommerce space is already very crowded, unlike the NFT space being relatively new.”
Making a statement
As it is, there is already an Asia-based NFT platform created for fashion lovers. Wear, founded in the midst of the pandemic last year, intends to bridge the gap between physical and digital fashion.
It allows NFT collectors to dress their avatars using art from their digital collections. This is in addition to having their own dedicated showroom in the metaverse for those collections.
Fashion brands are already launching their collections directly in the virtual world, after all.
The Gucci Garden, which was unveiled on the Roblox gaming platform in May, allowed users to view, try on and purchase digital items.
Fashion NFTs are not cheap though. Dolce & Gabbana’s nine-piece collection of digital NFTs – that came with some actual couture – sold for a total of 1,885.719 Eth (Ethereum cryptocurrency), or the equivalent of nearly RM23.9mil at that time.
Bear in mind that the value of cryptocurrencies fluctuate and can change a lot hour by hour.
The Karl Lagerfeld NFT sold for €77 (RM362), while Burberry’s was priced at US$300 (RM1,260). The NFT by Pestle & Mortar Clothing, which saw over 5,000 selling out within 10 minutes, has a price tag of 0.05 Eth (RM514 at the time of writing).
Read more: What is it with fashion and its fascination with competitive video gaming?
Being novel, the fashion NFT business can be fraught with challenges too.
A US artist who created and sold NFTs in the silhouette of Birkin bags is currently being sued by Hermes for infringing on its trademark.
Creating the NFTs themselves are not exactly easy, as well. A brand really needs to have fundamental knowledge of blockchain technology, aside from the understanding of how the associated virtual world works.
“The know-how is a big challenge. The design and creative aspect is of course something that we’re familiar with, being a fashion brand, but the backend part we needed help,” Koh says.
There is no guarantee that fashion NFTs will remain popular with Malaysian consumers in the long term, but he remains optimistic about the potential.
“Here in Malaysia, there isn’t much of a hype yet,” Koh admits.
“But fashion is always about looking to the future and predicting what’s the next big thing. Based on how NFTs have taken off in other countries of the Western world, this will be a huge trend.”
As NFTs allow brands to seize ownership over digital products, it will be good business-wise to not be left out – especially for Malaysia, whose local labels are trying their hardest to compete internationally.
Already a subscriber? Log in
Get 20% OFF The Star Digital Access
Cancel anytime. Ad-free. Unlimited access with perks.
