Combining NFTs with physical items, the use of Phygital NFTs is on the rise among fashion brands looking for a unique shopping experience.
Many fashion brands adopting this strategy offer limited edition NFTs, which are virtual versions of physical items such as NFT sneakers and jackets. NFTs are bundled with physical products, allowing customers to own and wear the physical item while keeping a digital version of the item on the blockchain.
Among the prominent Phygital NFT events that have successfully demonstrated their desirability, Dolce & Gabbana’s 2021 Collezione Genesi Phygital NFT auction stands out. Sales of the 9-piece NFT collection set a fashion physical NFT record after selling for around $6 million in Ether (ETH). Phygital NFTs have proven to be in great demand.
Since then, many prominent fashion companies have jumped on the phygital NFT bandwagon. One of them is Givenchy. In November 2022, the French fashion company teamed up with streetwear brand Bstroy to launch a limited-edition collection of Phygital NFTs. The unique collection consisted of jeans, t-shirts, hoodies, bags and shoes.
In January 2023, L’Oréal Group’s fashion brand Yves Saint Laurent Beauté will join the trend alongside luxury fashion brands such as Prada. The main reason fashion brands are adopting phygital NFT strategies is to offer a unique value proposition to customers seeking exclusivity.
An added benefit of using physical NFTs is that they help prevent the spread of counterfeit goods. This is because NFTs serve as proof of ownership, the element that verifies the authenticity of the corresponding physical item.
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