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When it comes to luxury, there’s nothing like getting a premium service, or feeling the physicality of an item in your hands – something that can’t be captured with NFTs. This is why fashion brands combine digital ownership with physical goods to play a very unique strategy for their clients..
One of the leading concepts of Web 2.5, phygital describes the process of the intertwining of reality and digital. For many entering the metaverse, this is now a well-established way to gauge interest in virtual initiatives: consumers buy an NFT and receive a limited-edition IRL twin, theoretically allowing them to experience the best of both worlds.
From Tiffany’s Cryptopunk pendants to Nike-owned RTFKT’s “Cryptokicks,” the concept of linking tokens to their physical counterparts is being used to appeal to consumers around the world and create a new era of mass in the process. Morgan Stanley predicts that the fashion and luxury goods industry will generate an additional $50 billion in sales by 2030..
Whatever you want to call these things (badges of honor, proof of authenticity, or golden tickets) they are an indication that you are part of an exclusive online community. The fact that they can be viewed offline makes them all the more desirable. Wenny Huang, business developer at digital transformation company UNIFI3D, said: “Figital, as a marketing method, should prioritize how to develop the customer experience online and offline.
If brands don’t create solid and future-proof digital roadmaps, a flood of digital twin concepts can enter the market without generating quick profits. with an NFT transaction Using the amount of energy a typical American family uses in a day, the negative effects on the planet are terrible. Additionally, bridging the gap between the physical and the virtual means incorporating new, more expensive ways of manufacturing and distribution.
However, there are promising prospects for phygital. To green the digital twin process, brands like digital luxury label Cult & Rain are opting for a made-to-order strategy to avoid overproduction. “We don’t want to flood the market,” says George Young, founder of Cult & Rain. “We’ve seen this happen in the fashion business, where the whole industry is corrupted by a mass-driven system and we get into this surplus clothing. Now, we’re seeing direct-to-consumer models start to thrive, or in our case, a no-stock strategy.
This limited-supply, scarcity ideology may answer the problem of overproduction for fashion – and perhaps Metavas – too. Jesse Fu, co-founder of digital fashion house Altr_, explains: “The big opportunity that virtual fashion opens up is that NFTs sell before physical clothes, allowing brands to gauge demand for physical goods before they produce and distribute them.” “This should reduce overall consumption, production and shipping costs that come with it.” Companies cannot afford to contribute more to already overworked supply chains, so such eco-friendly options should be considered by players looking to enter the virtual space.
Many are still skeptical of the concept of a new virtual world, but “Redeem it and keep it.” The model, as venture capitalist Nick Carter puts it, could speed up NFTs’ mainstreaming and make it more enjoyable for users to enter Web3. Additionally, the community benefits that come with some digital twin drops – take Italian brand Hogan, which has released a series of physical products as redeemable NFTs through its Decentraland-based retail space – as well as customization options are used to identify a product’s lasting value and benefit. From other products we buy off the Internet.
Hogan has teamed up with five digital artists to launch the extraordinary NFT collection, a re-edition of the original sneaker. Photo: Hogan
As new trends emerge, there are always opportunities and obstacles for those involved. For brands looking at the virtual world, it’s not necessary to tie NFTs to a specific product (they could simply release the product as a standalone item.) But if MetaVas continues its upward trajectory, it makes sense for companies to test the medium and test consumer demand. The key is to consider how these works fit into the broader long-term DNA rather than being short-term marketing gimmicks – like a physical project.
Strategist and researcher Precious Osoba says, “Many people still find themselves in virtual worlds that reflect their presence offline, with emotional and financial investments in communities and products, as in reality. As brands proliferate, the future of Fjital has only just begun.
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