By Gayatri Jhaveri Patel
We are witnessing the rapid rise of a new phenomenon in the digital world: non-fungible tokens, or as we call them “NFTs”. The market is growing in all areas, from culture to fashion, including luxury, cosmetics, cooking and real estate. Consumers and investors are increasingly interested in blockchain-related technology. These digital tokens are shaking up the codes and forcing large companies to rethink their marketing and communication strategies.
NFTs are based on the same blockchain technology that runs cryptocurrencies, and they essentially represent ownership of unique digital assets such as images, GIFs, videos, music, etc. These attract investors, art collectors, gamers and technology enthusiasts from around the world as an attractive asset class, which gives them exclusive rights of ownership held by one person at any given time, easily negotiable on online market places, therefore extremely liquid, although extremely risk averse.
Brands are turning to digital art to expand their offerings and want to continually learn, explore and understand the latest technologies, trends and market opportunities. Commercializing digital art through the sale of a unique property in the form of NFTs is a successful approach that allows brands to diversify their revenue streams and attract a new segment of consumers who believe in collecting properties. exclusive. It is also a new method to initiate and establish a special relationship between the brand and the consumer and actively engage their community to build on this relationship.
The bulk of NFTs are used to commodify digital art productions, and they’re excellent for gaining ownership of works like digital art, audio files, and video games. And here’s the best part – anything can be sold with an underlying NFT. So whether you are an artist looking to sell your art, a buyer looking to purchase art for personal use, or a collector interested in collecting exclusive artwork, NFTs have applications on the horizon!
In terms of digital art, some of the top-selling NFTs belong to digital artists like Pak, Mad Dog Jones, Beeple, Ferocious, XCopy, 3LAU, and Trevor Jones, among others.
The fact that each job has a unique serial number backed by blockchain technology and that all NFTs are protected against tampering is the most powerful marketing feature of NFTs. Artists sell some or all of their unique digital creations online while earning certain revenue on each transaction that the NFT changes ownership while ensuring there is no replication/duplication. It fundamentally revolutionized the way artists and creators were rewarded for creating. It also simultaneously assures buyers and collectors that they own a unique and enduring work of art while making their collections accessible to a wider audience, attracting new audiences who would not otherwise invest in conventional art.
Fashion and Luxury
Major luxury fashion houses are shaking up the status quo and reinventing fashion in the WEB3.0 era. Major brands have invested in NFTs in a quest for continuous creativity and innovation. NFTs in fashion and luxury can take many forms, including digital doubles, rare digital assets for the metaverse, and even a new range of digital collections.
NFTs offer the fashion and luxury industries a way to prevent counterfeits while still delivering great products. The landscape is changing so rapidly that the real use cases are still being discovered as we speak.
Gucci, the Italian fashion house, released a virtual replica of its Virtual25 sneakers in March 2020. Nike followed suit just over a year later, auctioning off entirely fictional shoes. Dolce and Gabbana recently offered an NFT line of nine garments and jewelry, worth 6.6 million euros.
Why are NFTs so powerful?
Rarity in the digital world
Not surprisingly, NFTs have been extremely attractive. Consumers are captivated by the prospect of owning symbolic, one-of-a-kind digital artifacts with commercial value. They become the proud owners of an authentic work or object that cannot be reproduced or falsified. Investors are attracted to them because of their collectability, uniqueness, and secure properties.
For some, NFTs are powerful investment tools while for others it is a speculative instrument. With thousands of unique digital artworks available for sale online, it takes a lot of research and knowledge to find the right NFT that can earn you a ton of money. This helps to understand why the NFT industry continues to grow in all areas.
A whole new customer experience
NFTs are a cutting-edge technical advancement that allows companies to reinvent themselves and provide a better customer experience. The NFT phenomenon allows marketers to offer their consumers a distinct digital experience while offering them more exclusive services.
NFTs are becoming the new playground for brands, and the marketing trend to watch! With such development, and the important role that technology will play in the metaverse (according to PwC, virtual and augmented reality could boost the global economy by 1.4 trillion pounds by 2030), NFTs are becoming the marketing trend. to monitor !
We now have NFTs to verify ownership of digital assets in the virtual realm, just as we have laws to protect ownership of goods. The Ethereum network is used by the majority of NFTs. They are the 21st century version of the gold rush. New NFTs will be introduced as people become more knowledgeable, leading to increased competition. NFT marketing will be needed in the near future to drive sales of NFT collectibles, and organizations specializing in NFT marketing will provide services to build communities and drive sales.
The author is founder and director of The G Story. The opinions expressed are staff.
Also read: EU law targets big tech companies for hate speech and misinformation
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