- NFTs and blockchain technology helps the industry towards greater product traceability and supply chain transparency
- Non-fungible tokens boldly spell an end to counterfeiting in the fashion industry, directly translating to higher sales for the big brands and the whole industry at large
- The global counterfeiting industry is expected to hit US$4.2 trillion by the end of this year
Fashion in Africa and globally is changing in an exciting way. In Africa, restrictions on creativity in dressing are fading, and the continent is dissolving in the freedom of fashion.
The garment and footwear market in sub-Saharan Africa is estimated to be worth US$ 31 billion, as per Euromonitor International. As the industry grows, there has been a strong desire to protect fashion from notorious counterfeits.
As a result, fashion has taken a different trajectory this year, Fashion NFTs! In 2021 alone, the NFT market was worth over $21.5 billion, and every other industry and institution is looking to attach to the fast-growing market. The initiatives range from entertainment, real estate, artistry e.t.c
Recently, Binance has been scouting for global faces, such as Christiano Ronaldo and Khaby Lame, to create their NFTs and capture the large audiences that follow them.
The relationship between Fashion and NFTs
From the name, NFTs are non-fungible. What does this mean? Creating a copy of an item is easily identifiable.
Big brands in fashion (Gucci, Jordan, Balenciaga, Nike, Polo, Christian Dior, Prada, Louis Vuitton) usually experience counterfeit items attaching themselves to their brand. The market suffers, too, as they get commodities that are not equivalent to their value.
The fashion industry benefits from the blockchain technology that runs behind NFTs. Non-fungible tokens boldly spell an end to counterfeiting in the fashion industry, directly translating to higher sales for the big brands and the whole industry.
NFTs and blockchain technology helps the industry towards greater product traceability and supply chain transparency. Brands can now easily prove the authenticity of their products. Digitizing items also increases the market for any fashion house as they can sell them as NFTs and later shift them to the buyer in whatever location.
According to RedPoints, the global counterfeiting industry is expected to hit US$4.2 trillion by the end of this year. Additionally, Ghost Data reports that about 20 per cent of fashion products advertised on social media are fake.
Brands that have integrated NFTs products
GUCCI- In 2021, Gucci sold its first NFT in an online auction hosted by Christie’s that went for a whooping US$25,000. At the beginning of 2022, the brand partnered with Superplastic’s artists, Junky and Guggimon. Superplastic is a global entertainment brand famous for creating animated celebrities and other digital collectibles.
The partnership created SuperGucci, 500 NFTs that were sold together with a handmade ceramic sculpture from Italy. Gucci has also agreed to accept bitcoin as a form of payment, indicating how willing they are to adopt the crypto and NFTs.
RTKFT Studios and Nike- This brand sells virtual sneakers. Interested parties can try them on Snapchat. They join a live auction and bid for them if they are interested. In 2019, RTKFT partnered with FEWOCIOUS and sold over 50 sneakers in seven minutes, generating over US$3.1 million. In 2021, Nike bought the brand to deliver its services globally.
Fashion in the Metaverse
The Metaverse promises a digital reality where everything happens in the digital world. Virtual fashion shows are launching in the Metaverse. Fashion brands can host their events digitally and make sales through the same.
Fashion NFTs in gaming
As the gaming industry grows more prominent, fashion NFTs are well propelling with it. According to a Global Entertainment and Media Outlook by PwC, the expansion of the gaming industry will make the global gaming industry worth US$321 billion by 2026. Additionally, PwC expects the global gaming industry revenues to exceed US$320 billion by 2026.
Fashion in gaming has also experienced its fair share of counterfeiting. Gamers struggle to play for hours or even use cash to unlock wearables. NFTs have allowed the tokenization of these wearables either into another metaverse, game, or even sell them for profits. They have also allowed for the protection of ownership of these digital assets.
The relationship between fashion and NFTs is an interesting space that promises to bring a lot to reality and to counter counterfeiting in the industry.