What is Fashion NFT and How Brands are Capitalizing on it?

Have you ever considered making your own NFT clothing? If you're one of those who are interested in the crypto universe (or not!), as a professional working in fashion, you should know about how it works and why big fashion houses are already so vested in it.

Given that NFTs can now be found not only in images, audio, and video but also in memes, gifs, tweets, real estate, and other non-digital things, the appearance of the fashion NFT and those eager to learn how to create NFT clothing comes as no surprise.

Before we get into all the details about clothing NFT, let's start with the fundamental term "NFT" and explain it to newcomers in this industry.

What is an NFT in fashion?

NFTs are one-of-a-kind digital tokens that prove an asset's ownership. To provide transparency around authenticity and ownership, these tokens can be traded safely, with transaction history recorded on a Blockchain - a decentralized, digital public ledger.

NFTs are typically associated with digital assets such as images or videos, but they are also used to record ownership of physical goods such as real estate, artwork, and even more often now, apparel.

Fashion NFTs can take many forms, including virtual garments that customers can wear within virtual environments, digital content with which owners can interact, and even digital twins of physical creations.

The Fabricant's iridescent dress, which sold for the equivalent of $9,500 in May 2019, was the first recorded sale of a fashion NFT.

The Fabricant's iridescent dress‌‌

Since then, a growing number of brands, including Louis Vuitton, Burberry, Nars, Levi's, Clinique, Dolce & Gabbana, Gap, and Adidas, have launched a wide range of NFT projects. Balmain has released at least four NFT projects and is still working on more. According to data collected for the Vogue Business Index, 17% of brands in the Index had worked with NFTs as of Winter 2021.

Now, not a week goes by without a new fashion brand announcing its foray into the world of NFTs.

It's not surprising that there is such a high level of interest in fashion NFTs in the current online world. Because stores were closed and fashion shows were canceled during the pandemic, brands turned to video games to connect with customers and generate revenue. As the concept of the metaverse expands and materializes, consumers are eager to show off their style and personality.

Image source Dazed

The pandemic highlighted the growing interest in virtual fashion and fun, personalized digital experiences. You don’t have to shop at traditional brick-and-mortar stores anymore. With the virtual dressing room, YourFit, shoppers can virtually try on the clothes and get fit and size recommendations.

How fashion businesses are capitalizing on the NFT trend

The rise of NFTs provides fashion brands with the opportunity to capitalize on a new generation of shoppers who enjoy creating and curating digital content and collecting highly coveted one-of-a-kind digitized novelties. The creative use of NFTs can also benefit luxury brands looking to generate buzz for their diffusion lines—their more casual and affordable sub-brands. Even small businesses can experiment with NFTs and sell them on online shopping platforms like Nifty Gateway, KnownOrigin, and OpenSea.

Augmented reality clothing

With augmented reality, which superimposes digital images over real-world camera footage, customers can now wear the digital assets they buy.

Brands such as DRESSX and XR couture are selling extravagant digital garments that customers can 'wear' with AR.

Digital fashion collection created by Google in collaboration with the Fabricant and Dress X

Nike and RTFKT recently released the Nike Dunk Genesis Cryptokicks, a collection of 20,000 NFT sneakers that owners can see in real life via a Snapchat filter.

Nike Dunk Genesis Cryptokicks

Metaverse fashion

Customers can also wear brands' digital goods in the metaverse, with growing blockchain-backed worlds like Decentraland and The Sandbox.

A growing number of brands are breaking through the Metaverse marketplace, including Nike, Gucci, Louis Vuitton, Balenciaga, Burberry, Ralph Lauren, and others.

Balenciaga, source epicgames.com

Digital Twins

Many brands are combining NFTs with physical goods that customers can wear. From Tiffany's Cryptopunk pendants to Nike-owned RTFKT's "Cryptokicks," the concept of combining tokens with physical counterparts is being used to appeal to consumers all over the world. According to Morgan Stanley, the metaverse could generate an additional $50 billion in sales for the fashion and luxury goods industries by 2030.

Image: Tiffany & Co.

Previously, a product's digital twin could only be created after the physical model was completed. Today, with NFTs, a digital twin can be created at any point in the manufacturing or sales cycle. For many brands, digital twins can help improve production decisions and choices. And test different aspects of a product design, like fit, shape, and color.

Virtual stores

Virtual stores are the three-dimensional, navigable, branded digital replicas of physical locations. They are now being designed to provide the best of both the physical and virtual worlds, creating a third mode of shopping that is neither a store nor a website.

Charlotte Tilbury, a cosmetics brand, has added the ability for customers to invite friends to join them on a shopping trip via Zoom-like video screens. Flowers sprout from the polished floor, under a domed starry night sky — all inside Harrods' virtual Dior Beauty store. The "House of Gifts" by Ferragamo takes customers inside the rooms of the Italian villa where the holiday campaign video was shot. Each has three-dimensional, photorealistic, shoppable products, as well as videos, music, and interactive elements.

Virtual store. Image source

Many brands, including Tommy Hilfiger, Ralph Lauren, Burberry, Gucci, Vans, and Balenciaga, have opened virtual stores, in addition to brand-created destinations within existing platforms.

Before you begin capitalizing on the NFT trend, consider the following risks and how to avoid them.

Intellectual property rights

Consider the intellectual property rights of creators before venturing into the world of digital collectibles. After you've completed that, the next step is to decide what rights you'll grant NFT buyers. How will you guard against unauthorized brand use? How do you intend to reserve creator royalties in the event that the NFT is sold again? These policies must be documented from the start of the process.

Data protection legislation

The intersection of data privacy and technology is another potential risk for businesses. The nature of blockchain technology and the structure of the General Data Protection Regulation (GDPR) are incompatible. The blockchain functions as a decentralized, immutable digital ledger without the ability to delete transactions, which contradicts a core GDPR principle.

Focus on ensuring data protection compliance through contractual terms and technical solutions when developing NFTs. To be able to react quickly and adjust your NFT strategy, make sure to adhere to privacy law frameworks and constantly monitor changes in the law.

Financial regulations

Existing regulatory frameworks are not well-suited to dealing with NFTs. As a result, the regulatory treatment of NFTs is changing and varies depending on jurisdiction.

Money laundering is another issue concerning NFTs. The US Department of Treasury published a report titled "Study of the Facilitation of Money Laundering and Terror Finance Through the Trade in Works of Art", which discusses how the high-value art market, including certain NFTs, is vulnerable to financial crime.

Environmental impact

NFTs require a lot of energy to create. According to Digiconomist data, a single ethereum transaction emits 146.81 kilograms of carbon dioxide.

If brands that emphasize sustainability as part of their mission engage with NFTs, they may face backlash from environmental activists. To avoid this risk, create a plan to give back to the environment to help. One way to do so is to invest in renewable energy and conservation projects to offset the emissions from your NFTs.

How to create a fashion NFT?

You can hire a designer to create an NFT for you, or you can design one yourself! Here is a step-by-step plan on how to create a fashion NFT:

How to create a fashion NFT

Pick a style that you would like to create

If you haven't already, decide what you want to turn into an NFT. It could be a custom pair of shoes, clothing, or accessory.

Create a physical version of your NFT

After selecting your NFT item, have it designed for a specific number limit. The limited quantities are always more valuable and have the potential to be sold first. Prepare your NFT chip or scannable label to go inside the piece of clothing or accessory. Easily scannable and protected from moisture, fad, and water, either on the external or internal surface of the item.

Choose the blockchain for your NFT and set up your digital wallet

Choosing the blockchain technology you'll utilize for your NFT should be your first move. The most widely used blockchain for NFTs is Ethereum. Tezos, Polkadot, Cosmos, and Binance Smart Chain are more prominent options.

You'll need a digital wallet because you'll be minting or paying gas fees with cryptocurrency. Popular NFT wallets include Metamask, Math Wallet, AlphaWallet, Trust Wallet, and Coinbase Wallet. You should buy some cryptocurrency as soon as you create your digital wallet. Many NFT platforms accept Ether, a cryptocurrency based on the Ethereum blockchain.

Create a digital version of your NFT

Take a number of detailed photos of your item on a mannequin or a model. Get the images photo-shopped, remove humans, or shape an object. Using Photoshop, enhance the appearance of all images to make them more beautiful and unique. Make the images of the installed NFT chip or label more clear and visible.

A service like WrapTag enables users to tag real clothes, shoes, and bags, as well as register images and information in order to create NFT. The NFT tagged with actual fashion items can be digitally collected and traded with other users on the blockchain.

Introduce your new NFT to the world

You will need a website to showcase all of your NFTs in order to promote your first NFT. It is essential to have a website as well as social accounts on LinkedIn and Twitter. Communication with potential buyers will build trust and allow more people to contact you.

Collaborate with other brands

NFTs have become increasingly reliant on collaboration. The more you collaborate, the more valuable NFTs become to your buyers.

The collaboration between Nike and RTFKT, for example, raised a lot of awareness about digital and physical NFT items. This collaboration was extremely profitable.

Choose NFT marketplace

The next step is to select an NFT marketplace. OpenSea, Axie Marketplace, Larva, Rarible, SuperRare, and ThetaDrop are some of the most popular NFT marketplaces. Starting with OpenSea is usually a good idea. It allows you to mint your own NFTs and is a popular NFT seller. After you've chosen your NFT marketplace, you'll need to link it to your digital wallet. You can mint the NFT and keep the sale proceeds in this manner. You can find step-by-step instructions for uploading your digital file in the NFT marketplace of your choice.

Establish the sale process

The final step is to decide how to monetize your NFT. You may be able to set a timed auction or a fixed price on your platform. There is also the option to launch an unlimited auction. There is no time limit on unlimited auctions. Rather, you decide when the auction will end.

You must set the minimum price, royalties, and auction length for your NFT to be resold on the secondary market. When determining the minimum price, keep in mind that if you set it too low, you will lose money on your NFT sale.

Various luxury fashion houses are utilizing NFT to engage, validate, and connect with global consumers. Here are the top most trending ones:

Gucci Aria Collection NFT Film

Gucci was the first luxury fashion brand to enter the NFT, selling its iconic NFT Aria collection at Christie's in June for $25,000 to commemorate its 100th anniversary. Aria NFT is Gucci's first official NFT. It is a short film with an upcoming collaboration with Balenciaga. The entire proceeds will be donated to UNICEF USA.

Burberry Sharky B NFT

Burberry is the first luxury brand to enter the game industry. Its NFT collection was launched with Blankos Block Party, a multiplayer party game featuring blockchain-based digital vinyl toys, in collaboration with Mythical Games. Sharky B was the name given to the limited-edition Blanko. Burberry also released branded in-game NFT accessories, such as pool shoes and jetpacks, that can be worn by any Blanko.

Louis Vuitton launches an NFT game

Louis Vuitton commemorated its bicentennial by releasing "Louis: The Game," an NFT video game for mobile devices.  Every NFT is a collectible that can only be obtained through gameplay. The NFTs in the game, however, are not for sale. As Michael Burke, CEO of Louis Vuitton, states:

“This is not a commercial experience, but a pedagogical, educational experience that must be fun, emotional and dynamic.”

Nike Acquired Digital Sneaker & Fashion Collectibles Site RTFKT

Nike acquired 3D creation studio in December and revealed a collection of co-branded digital sneakers on Discord and Twitter. Nike Cryptokicks are inspired by the Nike Dunk sneaker and mark the brand's long-awaited entry into digital clothing.

Fashion exhibitions in the metaverse

With their virtual fashion presentations, major companies like Christian Dior, Balenciaga, the Prada Foundation, and others helped to bring in the digital revolution.

Over 40,000 people attended the "Metaverse Fashion Week" that Everyrealm held in the virtual reality of Second Life in February 2022. In this fashion show, Jonathan Simkhai, a high-end designer and seasoned New York Fashion Week participant, displayed his smart wearables. Simkhai's NFT designs were sold for $3,000, and the buyer received actual clothing from the Fall/Winter 2022 collection.

Metaverse Fashion Week

Decentraland hosted its first 'Metaverse Fashion Week' in March 2022 in collaboration with the NFT marketplace, UNXD. The four-day gala event featured a number of virtual events such as catwalk shows, panel discussions, digital storefronts, and immersive after-parties. Guests could also purchase physical and digital merchandise from brands such as Hugo Boss and others.


It is an undeniable fact that advanced technology evolves at a breakneck pace and affects all fields. If you decide to sell NFT clothing items, it is highly recommended that you allow your customers to virtually try them on before purchasing. Utilizing the AR try-on technology will result in higher sales conversion rates for your brand.

Twitter icon Twitter Facebook icon Facebook Pinterest icon Pinterest LinkedIn icon Linkedin
Product Developer 👗👜👟
More posts by Oleksandra Baukh.