The fashion industry is embracing a bold, playful future, with NFTs at the forefront of this transformation. Whether we’re talking about strict collaborations between fashion houses or partnerships with staple web3 projects, it’s indisputable that the fashion industry has been reinventing itself in the web3 world for years. Fashion brands are growing their communities, offering loyal fashion lovers more exclusive opportunities to engage with their brands, and launching products that come to life with a twist in the web3 world. 

Since 2021, NFT collections have made once-exclusive fashion pieces available to anyone, anywhere. Leading the charge is Nike’s RTFKT, while fashion houses and web3 creators continue to roll out collaborations packed with redeemable NFTs — like Crocs, for instance.

Luxury fashion brands are also leveraging NFTs to launch exclusive digital collections, offering fans exciting new ways to engage and unveil products with a web3 twist. According to Forbes, the global digital fashion market is set to grow from $498.7 million in 2021 to $4.8 billion by 2031, with web3 driving this growth across categories.

Introduction to digital fashion NFTs

Digital fashion NFTs are transforming how brands create, sell, and connect with their customers. These digital items give designers and brands a way to establish ownership over digital fashion items, offering a secure and transparent system for buying, selling, and trading unique pieces. Using blockchain, fashion brands can guarantee the authenticity and rarity of digital garments, making them highly sought after by collectors and enthusiasts.

The advantages are clear: digital fashion NFTs let brands reach a global audience without the limitations of physical production. These digital creations can be easily customized and updated, sparking new avenues for creativity. As the fashion world embraces digital innovation, NFTs are poised to shape its future.

The rise of fashion NFTs in the fashion industry

The fashion industry has witnessed a significant rise in the adoption of NFTs, with luxury brands such as Louis Vuitton, Gucci, and Dolce & Gabbana launching their own NFT collections. These digital fashion creations have not only generated buzz but also provided a new revenue stream for fashion brands. According to a report by Morgan Stanley, the virtual fashion market is expected to be worth over $55 billion by 2030. Meanwhile, the McKinsey State of Fashion 2024 Report makes the case that digital fashion, namely virtual try-on experiences and digital product passports providing consumers with detailed information about a product's sustainability, is becoming an essential strategy for fashion brands looking to innovate and remain competitive.

The rise of fashion NFTs has also led to the creation of new business models, such as digital fashion houses and NFT marketplaces, which are changing the way fashion is consumed, bought, and sold. These platforms offer a space for fashion brands to showcase their digital garments and connect with a tech-savvy audience. As more luxury brands venture into the virtual fashion space, the industry is poised for a transformative shift that blends traditional craftsmanship with cutting-edge technology.

Now, let’s look at how top brands are taking their fashion houses to new heights — literally and figuratively. Here are five brand partnerships dominating the web3 world in 2023.

Nike

Nike and RTFKT, one of the leading NFT fashion brands, released not one but two new sneakers in the fall of 2023. Their first drop was a gifted exclusive “What The” edition of the Air Force 1 Low for its most loyal RTFKT collectors. The sneaker used elements from the ten original AF1s released in April. Then, RTFKT (the virtual sneaker company acquired by Nike) unveiled its second offering for NFT owners with a “forging event.” NFT holders could purchase a “Dunk Genesis” sneaker for $222, plus gas fees, which would ship in the summer of 2024.

Nike also activated its .Swoosh digital community with its first-ever physical sneaker. The sneaker — named “TINAJ” after “this is not a JPEG” — is a play on the Nike Air Force 1, but with .Swoosh branding. It is only available to purchase by those who already own the OF1 box or digital Air Force 1s. In its second mention on this list, Nike continues to embody a penchant for pushing boundaries in the fashion and web3 spaces. Their .Swoosh push is just one more example of this. Tommy Hilfiger has also been active in the digital fashion scene, participating in events like Metaverse Fashion Week and creating virtual stores.

BAPE

A meeting of the Apes took place in the fall of 2023, when Yuga Labs' Bored Ape Yacht Club and Japanese luxury fashion brand A BATHING APE collaborated on a capsule collection unveiled at the annual Ape Fest. BAPE shared teasers on social media, revealing a twist on classic designs with branded hoodies, t-shirts, sneakers, and hats, hiding Easter eggs in the imagery. Bored Ape NFT holders had first access, but the collection was also made available globally in stores.

In September 2024, BAPE and BAYC returned with Season 2, continuing their partnership with fresh designs that blend streetwear and web3 culture, further expanding their reach in both the fashion and NFT worlds.

Crocs

Crocs are taking on a life of their own in the NFT universe thanks to a collaboration with Doodles, the highly recognizable pastel PFP project. At the end of the summer, Doodle NFT owners and the general audience were invited to purchase the “Doodles x Crocs Classic Clog Bundle.” The $120 bundle included one pair of clogs, one 8-pack of Doodles Jibbitz charms, and a limited edition Crocs Box digital collectible. Doodle x Crocs owners were invited to redeem their digital collectible on October 31, 2023. Once redeemed, the NFT gained two Crocs wearables and a Stoodio Beta Pass.

Adidas x Moncler

Adidas’ collaboration with Italian luxury brand Moncler was part of our weekly This Week In Web3 highlights of October 2023. The iconic sportswear brand partnered with the luxury fashion brand to launch “The Art of Explorers,” a collection full of looks that bring both brands’ most recognizable design details together. The down jackets hold Moncler’s iconic bubble detailing, while the shoes incorporate Adidas Orginals’ design elements. In addition to physical products, the collection also includes NFTs of mixed-media and AI-generated explorers and statues dressed in digital versions of the collection. The partnership is just another example of boundary-pushing NFT collaborations in the fashion world.

Diesel 

Diesel launched its third NFT collection in fall 2022 and with it, a new way to bring NFT holders into the fashion world. Anyone who purchased the Diesel x Public Pressure NFT could attend the fashion brand’s Spring 2024 fashion show. The 300-item NFT collection also had other utilities like the opportunity to purchase a limited edition watch, attend a virtual event, and access an exclusive curated soundtrack. 

‍Creative ways fashion brands are using NFTs

Fashion brands are using NFTs in creative ways to engage with their customers, create new revenue streams, and build brand loyalty. One popular approach is the creation of limited-edition digital clothing collections that can be bought and sold using NFT marketplaces. These exclusive digital garments offer a unique way for fashion enthusiasts to own a piece of their favorite brand’s history.

Another innovative use of NFTs is in virtual fashion shows. Fashion brands are leveraging NFTs to create immersive and interactive virtual fashion shows that allow customers to experience their latest collections in a new and exciting way. These virtual events not only showcase the brand’s creativity but also provide an engaging platform for customer interaction.

Collaborations with artists and designers are also becoming a trend in the NFT space. Fashion brands are teaming up with creative minds to produce unique and innovative NFT fashion collections that highlight their brand’s style and vision. These collaborations often result in extravagant digital garments that captivate audiences and set new trends in the digital fashion world.

The future of fashion NFTs and fashion brands

Fashion NFTs are already changing the industry, with new technologies reshaping how brands create, sell, and interact with consumers. As NFT technology evolves, we’re seeing more practical applications in fashion, like virtual try-ons that let customers visualize digital garments on themselves before buying, enhancing the online shopping experience.

NFTs can also authenticate luxury goods. By using blockchain, brands can provide a secure, transparent way to verify the authenticity of high-end items, potentially reducing counterfeiting and ensuring buyers receive genuine products. Brands that embrace NFTs early will position themselves as innovators, gaining a competitive edge in this rapidly evolving landscape.

Conclusion

Digital fashion NFTs are poised to reshape the industry and offer brands new ways to create, sell, and engage with customers. By tapping into NFTs, fashion brands can unlock fresh revenue streams, build stronger customer loyalty, and showcase their creativity in innovative ways. As NFT technology continues to evolve, the fashion world will likely see even more groundbreaking developments. Brands that embrace this digital shift will not only stay relevant but will lead the industry into the future of fashion.