How to Build A NFT Fashion Marketplace?
NFT Fashion Marketplace
If you build A NFT Fashion Marketplace of cryptocurrency more and more, you have undoubtedly read or heard about the metaverse in recent months. We are witnessing an innovation boom where the impossible does not exist, and the future is unlimited. The key is to make the most of these trends and understand how your business can benefit from all the opportunities to travel on the Internet.
Ecommerce websites are slowly but slowly adapting to the ever-changing digital world. Online retailers embrace crypto, and last year, PayPal announced Checkout with Crypto functionality, which allows customers to pay for their purchases with cryptocurrencies.
What is an NFT?
In short, NFTs are blockchain products that can trade on blockchain marketplaces. Today, NFT is one of the main acronyms for novelty, technology and cryptography. They have taken the world by storm. According to the Collins Dictionary, last year, the word NFT in the United States increased by 11,000%.
NFT stands for Non-Fungible Token, which means that they are unique assets, something like exclusive sports trading cards or a limited-edition vintage item of clothing. They include all kinds of digital objects, such as drawings, songs, gifs, etc.
How Luxury Fashion Brands are playing the NFT Game?
You may ask yourself, “ and digital products that I am not going to be able to use?”, but for online retailers, NFTs can come in all kinds of shapes, uses and sizes.
So yes, digital fashion is a reality. Although traditional fashion is much more helpful to society, luxury fashion designers are entering the exclusive (and expensive) world of NFTs and cryptocurrencies. NFTs enable, helping to increase brand recognition, engagement and sales.
About NFT and Blockchain
As we already said, NFT stands for Non-Fungible Token. The word Token can be defined as a digital representation of an asset in skill. In turn, Non-Fungible means something cannot replace by something else.
An easy way to exemplify what a non-expendable good is, is the art market: how many Van Gogh paintings are worth a Mona Lisa? There is no such relationship since they are unique, different and irreplaceable works. Instead, you can exchange a $10 bill for 2 $5 bills because they are fungible.
How do Brands NFT use Them, and What Results do they get?
NFTs became popular due to million-dollar transactions for works of art such as Beeple’s The First 5000 Days and celebrities who joined the movement as members of a club with exclusive possessions.
Neymar, Jimmy Fallon, Eminem and Snoop Dogg consume imageries of algorithmically generated monkeys, which the Bored Ape Yacht Club bought for millions of dollars.
Some companies have been working with the joining amid the physical and the digital. This is the case with companies such as GAP and Adidas, which have created NFT collections that allow the buyer to access physical pieces exclusively.
The strategy behind these initiatives is mainly to maintain a playful spirit of community and exclusivity behind the brands, strengthening the idea of creating fan clubs and building customer loyalty.
The “Dark Side” of NFTs
As you already know, NFTs are related to a digital certificate through the blockchain. You may not know that the encryption process to ensure network security consumes a lot of energy and carbon emissions, which generates environmental impacts on the planet.
Therefore, NFTs are still frowned upon due to global concern about the world’s ecological footprint. There are now initiatives from some blockchain companies that aim to reduce energy consumption to create NFTs to reverse this adverse situation.
Are NFTs a Good Strategy?
Well, that’s the million-dollar question. As a specialist in business management, what I think is that the worst thing a company can do is not position itself in the face of market opportunities. It is not yet possible to say if NFTs are just hype or here to stay, but many brands are already using them for challenges that everyone already knows: getting closer to their audience!
It’s like asking companies in 2010 if being on Facebook is a good branding strategy. Please realize that we are looking to solve the challenges through a different technology.
Connect your wallet to an NFT website
Once you have your wallet with your stored cryptocurrencies, it is time to choose the NFT portal in which you will sell your creations. OpenSea and Raible are the most used. On the one hand, OpenSea is famous for its ease and intuition and for not charging fees for listing your NFTs, so you don’t have the pressure of not selling. You will only charge the agreed percentage (2.5%) of your sales when the buyer makes the payment. It is a platform that supports all types of NFT, whether it is an image, audio, video or all three simultaneously.
Turn your work into NFT
Once your work is created, it is time to transform it into an NFT. The conversion process is called ‘ minting ‘ and is done on the portal to which you have chosen to upload your NFTs. Raible Singles has a free ‘minting’ option, where the buyer of your NFT pays the conversion fees.
Types of NFT Fashion Marketplace
1. NFTs for the First Time at Fashion Week
French Fashion” and “Haute Couture Federation” partnered with the platform “Arianee” to create NFTs that could be exchanged at the Fall/Summer 2022 men’s fashion week in Paris and other haute couture expos. These tokens allow their users to see exclusive fashion, one of them by famous fashion digital artist Richard Haines. The introduction of NFT during fashion week could illustrate a paradigm shift.
2. The First Luxury Fashion House to Sell NFT
Gucci became the first luxury brand to delve into NFT raids.
The iconic Italian fashion house NFT was designing after fashion products but rather a movie inspired. Its “Aria” collection is in collaboration with Alessandro Michele. This 4-minute film sold at Christie’s auction for $25 billion.
3. Louis Vuitton and its Own Game with NFTs
In the festivity of the 200th birthday of its creator, Louis Vuitton combined fashion and technology by introducing “Louis the Game”: an adventure-style game. If where players would have to traverse a dollhouse belonging to the game’s protagonist named Vivienne.
Besides that, players travelled to different lands to collect 200 candles to represent the French luxury brand’s 200th birthday. The adventure featured 30 hidden NFTs and 10 NFTs collaborating with “Beeple”, a famous NFT artist. The NFTs in this game are open for collection and are not for sale to the public.
Once you have your NFT uploaded to the platform, it is time to release it for sale. You have three options: put a fixed price on your NFT. Put it up for an absolute auction until you accept a bid. Or put it up for auction for a limited time, getting the highest when it’s gone.
The most used system is the auction system. In which the creator sets a starting price and benefits from a commission for each resale of his NFT to third parties. When placing your starting price, you must consider the profit margins. If you need the time spent and the commissions for ‘minting’ your work.
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