How The Fashion Industry Will Evolve with NFTs and the Metaverse

The rapid and record crypto growth in 2021 has paved the way for different sectors and industries to expand their offerings and rethink their approach to connecting with customers. Since then, Web 3.0 has added buzzwords like NFTs and the Metaverse into the conversation. The fashion industry is only one among many looking to capitalize on the growth of crypto.

In our previous “Why is NFT Worth Money?” post, we explained how non-fungible tokens (NFTs) represent one-of-a-kind digital assets. The scarcity, rarity, and utility of NFTs make them an exciting asset to pair with the worlds of fashion and luxury. As such, many fashion brands have devised innovative ways to promote and distribute their offerings. Below, we’ll look at some examples of fashion brands experimenting with NFTs and the Metaverse:

Oakley and the Metaverse

Sports eyewear brand Oakley is familiar with tech-inspired and futuristic designs. Currently, the lineup of Oakley sunglasses ranges from the ski goggles silhouette of the Sutro to the newly introduced 13.11 — an exclusive limited edition release inspired by the Pro M-Frame. The hingeless frame uses Oakley’s proprietary O-Matter™ material and features a unique brow design reminiscent of the brand’s Kato model. Oakley’s design philosophy, which often champions sci-fi-like elements, makes the brand’s foray into the Metaverse all the more exciting.

In a 2022 interview with Soundbytes, Oakley’s head of strategy for global sports marketing, Reggie Casagrande, expressed interest in the relationship between sport, the Metaverse, and NFTs. Notably, Casagrande cited the Fortnite collaboration with Patrick Mahomes and heritage organizations like the MLB, NFL, and NHL partnering with e-sports organizations. In May 2022, Oakley announced a partnership with e-sports organization Envy Gaming. Future NFT or Metaverse projects from Oakley may bring the brand’s performance eyewear and design concepts into the world of Web 3.0.

Gucci and NFTs

Another fashion brand dabbling in NFTs is the Italian luxury fashion house Gucci. In 2023, the brand announced that some of its NFT holders would be rewarded with physical Gucci products — a wallet or a bag — that can’t be purchased by any other customers. These exclusive pieces would only be available to people who own a Gucci Vault Material NFT, given in 2021 to holders of the Gucci Grail NFTs, a digital partnership between Gucci and narrative NFT project 10KTF.

Gucci’s offering of letting NFT holders trade their assets for exclusive physical luxury goods wasn’t the first of the brand’s Web 3.0 and Metaverse projects. Gucci was an early adopter in the digital space, starting with a $25,000 art film auctioned by Christie’s in June 2021. Since then, Gucci has invested in its Metaverse ventures, focusing on gamified, narrative approaches to luxury that help make the brand more “approachable.” The luxury brand is also unafraid of bridging the physical and digital worlds, as a digital Gucci loafer reimagined for the “Next 100 Years of Gucci” exhibition in Milan was ultimately produced as a physical piece in the show.

Balenciaga and crypto payments

Finally, Spanish luxury fashion house Balenciaga takes a more direct approach to Web 3.0 and the Metaverse. In 2022, the luxury brand announced that it would be accepting cryptocurrency payments at Balenciaga flagship stores, including on Rodeo Drive in Beverly Hills and Madison Avenue in New York. Crypto payments were also allowed online at the brand’s official website. The brand is one of other Kering-owned brands, like Gucci, which announced they would accept ten cryptocurrencies in late 2022.

Of course, cryptocurrency payments were only the beginning. Also in 2022, Lorenzo Riva, Balenciaga’s artistic director in the early 1980s, announced the “Cristóbal Balenciaga: To the Moon” NFT collection. These assets were inspired by Riva’s collection of 8,300 original, never-before-seen designs from the Balenciaga founder. The project also highlighted 50 exclusive one-of-one “haute couture” Balenciaga NFTs to boost consumer participation in Web 3.0.