There’s a newcomer to the digital world that has been generating considerable buzz over the past few months: NFTs.
As one of our classmates already pointed out, recent NFT transactions included the sale of a Tweet, digital works by the musician Grimes and a digital NFT painting by the artist Beeple at $69 Mn (sold by Christie’s). I have been wondering how NFTs could be tangibly used by e-commerce players and brands, and an article published by the Business of Fashion gave me a starting point.
The design studio RTFKT pioneered the first NFT e-commerce transaction: they sold 621 pairs of shoes priced at $3,000 to $10,000 issued as NFTs, meaning that the buyers have purchased a digital ownership right first, and will be shipped the physical shoes later. This implies that a new way of selling and owning physical products through e-commerce may emerge:
- Brands
could issue NFTs linked to physical products, and extend their value
through NFT digital certificates proving ownership of physical products
(e.g., as simple certificates, or as digital twins to wear online)
- IP
rights holders (e.g., brands) could potentially get a cut on all future
sales, should their NFTs be sold on the secondary market
- NFT
blockchain authentication implies that brands could be better positioned
in controlling the resale and counterfeit market for their goods
It still remains to be seen whether NFT will be a fad or will be there to stay. However, brands should monitor the space and brainstorm innovative ways to put the technology to use.
https://www.businessoffashion.com/briefings/technology/nfts-for-fashion-fad-or-opportunity
https://www.businessoffashion.com/articles/technology/what-the-nft-gold-rush-means-for-fashion
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