What: Non-fungible tokens (NFTs) are trending and could have long lasting implications for luxury fashion.

Why it is important: NFTs allow luxury brands a chance to be more creative and connect with their customers in virtual worlds.

Every day NFTs are seeing new use cases and record sales. Fashion brands are trying to study the world of blockchain and its creative business possibilities to get in on the profits. Luxury brands like Gucci have expressed that It is “only a matter of time” before luxury brands start releasing NFTs of their own.

Luxury brands fell behind on the e-commerce trend, so there is a willingness to experiment with new technologies like blockchain. NFTs could be the next evolution of digital fashion skins, which have already been embraces by luxury fashion brands. The fact that NFTs are scarce and have the ability to accrue value can bring digital fashion closer to real fashion.

Companies are competing to create clean, beautiful, and premium experiences for NFT fashion. These applications would allow customers to try on luxury clothes or to wear them in gaming realms. NFTs give brands the chance to think beyond physical items, using the virtual world as a way to push the limits with elements that are not as easily achieved in reality.

Luxury fashion brands poised to join the NFT party