What: Prada, Tiffany & Co., RTFKT and other brands are using NFTs as a way to sell physical products to specific customers based on the NFT they hold.

Why it is important: Different strategies have emerged in the growing NFT market with fashion companies creating digital twins, using token-gating, and targeting specific NFT holders.

Tiffany & Co. recently announced their NFTiffs for CryptoPunks holders offering the ability to purchase an exclusive pendant costing 30 Eth or 50,000 USD at current conversions. Buyers of the pendant will receive an NFT resembling the physical item.

Many other brands like 9dcc, Dolce & Gabbana, and Prada are linking NFTs with physical products. This is seen as an opportunity to engage loyal customers and release physical goods. Buyers who receive a physical product are predicted to repurchase by receiving access to future sales through the NFT. Some criticize this release model as a pre-order program with unnecessarily complicated steps for the average consumer.

The reliability of blockchain in providing an open infrastructure for anyone to use is leading the argument against using emails and traditional records which could accomplish the same abilities as NFTs today.

Fashion using NFTs to sell exclusive physical products