Why Are Luxury Brands Launching Their NFT Collections?
With the rise of the metaverse and the world moving towards augmented reality (AR), it’s no surprise that the one innovation that has been dominating the crypto market (and our dinner discussions with family and friends) the entire year is NFT technology. Within the first half of 2021, the digital assets market showed astonishing results, generating over $2.5 billion in sales!
No doubt, that’s all fun and exciting, but what are the real benefits that actually made the luxury industry take a look at NFTs in the first place? To sum it up, the key benefits of NFTs are as follows:
— Immutability of Tokens
— Transparent Product History
— Authentication of Products
— Digital Certification of Ownership Rights
Indeed, this all sounds very promising and revolutionary, but could there be another driving force causing luxury brands to launch NFT collections, aside from the aforementioned reasons? The answer is a million percent yes. We all remember how late the luxury industry was to embrace e-commerce, due to scepticism and ideology clashing with many online shopping platforms over exclusivity… And even now, the industry is still catching up! Today, NFTs are a fairly promising trend, and missing such an opportunity means the risk of making another fatal mistake.
First NFT Collections In The Luxury Industry
Fortunately, the billion-dollar luxury industry didn’t turn a blind eye this time around. High-end fashion brands such as LV, Dolce & Gabbana, Jimmy Choo, Burberry, Givenchy and others have already launched their own NFT collections. Take a look at some of them with us!
Dolce & Gabbana’s nine-piece NFT collection Collezione Genesi was first announced and shown to the public in late August 2021 at the Dolce & Gabbana’s Alta Moda Show in Venice, Italy. The collection was designed by the founders of the brand, Domenico Dolce and Stefano Gabbana, and features items across women (Alta Moda), men (Alta Sartorial) and high jewellery (Alta Gioielleria). It is the first luxury NFT collection to have bridged the physical and metaphysical by including both digital and physical pieces of art.
The most expensive piece, The Doge Crown, was sold to Red DAO for 423.5 ETH. The newly formed crypto group that focuses on fashion NFTs also won The Velvet Impossible Jacket (107.1 ETH) and The Mosaic Impossible Jacket (97.4 ETH), two stunning pieces of digitally wearable jackets inspired by Venice’s most spectacular sites. The whole Collezione Genesi collection was sold for 1,885.7 ETH, equivalent to over $7.5 million as of today.
Another NFT drop that was hard to miss is Burberry’s collaboration with Mythical Games. In August earlier this year, the brand announced its partnership with the Blankos Block Party game to release a limited-edition and limited-quantity Burberry Blanko, Sharky B, that can be purchased, upgraded and sold within the game’s marketplace. The collection was sold out in just 30 seconds after its launch, making it the quickest sale in Blankos history!
LuxFi is the world’s first asset-backed NFT marketplace for luxury assets, where people can buy, sell and invest in luxury assets using cryptocurrencies and traditional payments. We eliminate counterfeiting while minting an NFT on a multi-chain blockchain network, with a focus on luxury assets that hold value well and have a high resale value. Leveraging our big data intelligence system and unique algorithm for automated data collecting and data processing, the value of each NFT on our platform is backed by real-world data.
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