Luxury brands are looking for new ways to enhance customer experience and make a lasting impression. Many giant brands are experimenting with NFTs, and now smaller businesses are following suit as well. So far, it has proven to be quite a good idea, and many brands are finding success in engaging with customers and enhancing their operations with NFTs.
Popular brands and their experiments with NFTs
While many consider NFTs to be a fad, several major brands have been using them in innovative ways to much fanfare. The following are the best examples:
Ray ban collaborated with digital artist Oliver Latta to create the highly sought-after pair of Ray Ban Aviators in NFT form. The NFT was sold on OpenSea for around $5869 (1.8 Eurotheum), and all the proceeds went to charity.
Digital artist Beeple joined hands with Louis Vuitton to develop an NFT game called “Louis: the Game’‘ as part of the 200th birthday celebration of Louis Vuitton. The game contains 30 NFTs that players can collect.
Adidas and Prada
Adidas and Prada teamed up to enter the Metaverse together and created an opportunity for common people to create NFTs by submitting photographs under the Adidas for Prada Re-source project.
While these are the more popular examples, NFTs have several business uses that not many are aware of. However, in terms of creating impactful luxury brand experiences, the advent of NFTs has the potential to be revolutionary.
Benefits that luxury brands can expect by using NFTs
Introducing technology into a business always tends to be a good idea. Yet, many growing luxury brands are apprehensive about doing so by using NFTs considering them to be not that worthwhile. Well, the following benefits prove otherwise:
Sustainability is a major concern in the luxury goods industry; the annual waste from the textile sector amounts to 92 million tonnes. As the concern grows, luxury brands are trying to spread awareness about the efforts they take to protect the environment and be more socially responsible. The best way to bring this kind of transparency in business is by using NFTs. It is now possible for a luxury brand to assign a traceable NFT to each of their products. This makes it simple for each customer to track a product’s provenance and get a clear idea of what all went into its production. In turn, this enhances customer appeal towards the brand, which further boosts loyalty.
A personalized experience has become a rare commodity for the common shopper thanks to mass production in the luxury goods industry. It is something that many consumers crave for, but brands are unable to practically provide. This gap is easily closed using product-based NFTs. Any customer with a smartphone can access interactive product experiences, from a recycling tip to a detailed product use tutorial, all using NFTs. Such initiatives can contribute to higher customer satisfaction and product sales.
With so many goods circulating through the supply chain, it often becomes hard for luxury brands to keep things on track and avoid blips. Plus, there are several operations that are done manually, but will actually work better if they are automated. This issue, again, is resolved by using NFTs. Aided by functions like smart contracts, NFTs make it convenient for businesses to keep track of their products and manage them better. This also helps in reducing counterfeiting issues and promoting overall authenticity of the products.
4. Proof of ownership:
Establishing proof of product ownership is a time consuming task when done manually, but this is not the case when brands use NFTs. It is also possible to digitally transfer ownership within a matter of minutes using NFTs. Needless to say, ensuring ownership is quite convenient as long as NFTs are used to do so.
Employing NFT-based solutions with Authlink
Authlink is a one-stop platform for a luxury brand’s NFT adaptation needs. It is simple and easy to use, and the data uploaded in it remains secure and tamper-proof at all times. What’s more, the platform employs state-of-the-art technology to assist brands in improving their business processes with NFTs on an entirely time and cost efficient basis. The luxury goods industry is looking for some transformation, and Authlink is here to provide exactly that.