How are NFTs used in fashion and wearables?

The use of phygital NFTs, which are NFTs paired with physical items, is a growing trend among fashion brands looking for a unique shopping experience.

Many fashion brands using this strategy offer limited edition NFTs that are virtual versions of physical items, such as NFT sneakers and jackets. The NFTs, which are bundled with physical products, allow customers to own and wear the actual item while having a digital version of the item on the blockchain.

Among prominent phygital NFT events that have successfully demonstrated their desirability, Dolce & Gabbana’s 2021 Collezione Genesi auction of phygital NFTs stands out. Sales of the nine-piece NFT collection set a fashion phygital NFT record after it sold for approximately $6 million in Ether (ETH). It proved that there was a significant demand for phygital NFTs.

Since then, numerous prominent fashion companies have jumped on the phygital NFT bandwagon. One of them is Givenchy. In November 2022, the French fashion company launched a limited edition collection of phygital NFTs in collaboration with Bstroy, a streetwear brand. The unique collection consisted of jeans, T-shirts, hoodies, bags and shoes.

In January 2023, L’Oréal Group’s Yves Saint Laurent Beauté fashion brand will also join the trend alongside luxury fashion brands such as Prada. A key reason fashion brands are embracing the phygital NFT strategy is to offer a unique value proposition to customers seeking exclusivity.

An added benefit of using phygital NFTs is that they help prevent the proliferation of counterfeit goods. This is because NFTs serve as proof of ownership, a factor that validates the authenticity of their corresponding physical items.