New Fashion Trend

Even as the NFT mania dies down, global fashion brands like nike and gucci continue to mint millions by providing tangible use cases for the high-end tokens. Their indian peers may need to take a page out of their playbook to survive beyond the hype

- Vidya S.

WILL YOU splurge 449,000 ona pair of sneakers? Let’s rephrase that: Will you splurge 449,000 ona pair of virtual sneakers that you cannot wear? You may or may not just do it’ but someone did. Nike sold a pair of virtual sneakers from its Dunk Genesis Cryptokicks range—a line of non-fungible tokens NFTs) priced between 2,500 and 449,000 fora pair.

That’s not all. The iconic footwear brand has already earned revenues of 185 million through NFT drops. Dolce Gabbana D&G), Tiffany, Gucci, and Adidas have also joined Nike to rake in 240 million through NFTs so far, as they try to turn the digital asset intoa serious additional revenue source.

But what is a fashion NFT anyway, you ask? Sure, they may work for abstract categories such as art or music or gaming. But how does an intangible digital asset make sense for tangible items like clothes and shoes? Do they have a purpose?

“While the concept of spending real money on clothing that does not physically exist is slightly confusing, virtual possessions do generate real sales,” says ace fashion designer Manish Malhotra—one of the first designers to launch a fashion NFT in the country. When people buy NFTs, it’s with a collector’s mindset—much like buying couture for exclusivity. It can become an asset class once the market grows,” says Viraj Khanna, Director of luxury brand Anamika Khanna AK-OK), which also launched a three-piece NFT collection last year.

But to answer the question— no, at least not yet in the Indian context. Also yes, looking at what some of the iconic global fashion brands are experimenting with.

The mainstream popularity of NFTs exploded in 2021, with art and gaming taking the lead as NFT collections such as the Bored Ape Yacht Club and CryptoPunks earned billions of dollars. Soon, major fashion brands began experimenting with the technology to engage with their customers.