There is always room for innovation and advancements in the web3 space. Non-Fungible Tokens with wide avenues for integration and new use cases. Phygital NFTs have become one of the hottest trends in the NFT market in recent times. Global brands and the fashion industry are the major contributors to the massive reach of phygital NFTs. Owning just digital collectibles safe in your crypto wallets may give the collectors a void experience. But, the advent of phygital NFTs helped creators to fill the voids left in collectors even after purchasing the NFTs with lots of money.
The phygital NFTs are an amalgamation of physical and digital NFTs enabling the holders to experience the NFTs in both worlds. With phygital NFTs having the potential to do wonders in both worlds, global brands have effectively capitalized on the opportunity to deliver an enhanced shopping experience for customers across the world.
According to CoinMarketCap, the current market capitalization of NFTs has reached more than 600 million, with graphs pointing upward in recent times. With the NFT market at such great heights. Rolling out Phygital NFTs on NFT marketplaces and other NFT platforms could expand the reach and enable the NFT market to reach more great heights.
Why Brands are Rapidly Adopting Phygital NFTs
Incorporating NFTs in any industry has shown positive results, enhancing the customer experience and easing the process for brands on the whole. One of the biggest reasons why we are witnessing growing phygital NFT adoption among global brands is to enhance the experience for customers over the asset. For any brand or business to thrive in its respective markets, it is essential to provide a rich customer experience. Phygital NFT does the magic in both worlds. Imagine you own a unique accessory or clothing which you can flex in the virtual world and real world. For instance, back in 2022, popular fashion brand Diesel dropped its phygital NFT collection called ‘D-Verse,’ which enabled the holders to experience first-hand fashion shows and receive limited edition garments and virtual ready wearables.
With gaining metaverse developments and adoptions across the globe. It would be difficult for virtual space users to represent their assets in an immersive environment. To tackle this problem effectively, brands came up with NFTs as a solution. Over time it was found that bundling physical and digital Non-fungible Tokens was even more effective.
Yet another challenge that brands were able to overcome through phygital NFTs was the everlasting battle between counterfeit products. NFTs attached to the actual product enabled the consumers to figure out the original product in the market. Moreover, the bundled NFT with the actual product can also be used in metaverse platforms by the holders to project their ownership of the product in the virtual world.
Top Brands Who Are Currently offering Phygital NFTs
The below-mentioned are some of the global brands which effectively used the scope of phygital NFTs to drive their sales and enter the web3 space.
RTFKT And Nike’s Cryptokicks Sneaker Collection
Nike and RTFKT are among the popular names in the Web3 NFT space. Moreover, Nike has effectively used NFTs to promote the adoption of NFTs in their metaverse platform and drive real-world sales. Cryptokicks are customizable digital sneaker NFT collections available on the Ethereum network. In addition, holders of these NFTs will also get real-life versions of the digital sneaker they are holding. This makes the ‘Cryptokicks’ a truly phygital NFT collection.
Bstroy x Givenchy NFT Collection
The luxury fashion and perfume brand Givenchy stepped into the Web3 space. Their phygital NFT collection features menswear, womenswear, and unisex items such as a crewneck varsity jacket, sweater, double-headed hoodie, oversized polo shirts, sneakers, and much more. The collection was launched as a part of paying homage to Bstroy’s Atlanta roots.
Givenchy dropped the physical collection first in their stores, and after two weeks when the brand launched its NFT collection. The luxury fashion brand sent e-mails containing instructions regarding redeeming their NFT counterparts which enabled the collection to become a phygital NFT collection.
Prada’s TimeCapsule NFT Collection
Prada’s TimeCapsule NFT collection is a monthly release that features limited edition phygital NFTs. The latest NFT collection features unisex shirts with prints produced by an Italian photographer called Enzo Ragazzini. The TimeCapsule NFT holders will get their physical NFT once the successful purchase is completed. In addition to getting physical NFTs, holders will also gain access to the closed Discord Prada server.
Hodie is the first Italian platform that houses multiple brands enabling users to buy phygital NFTs backed with real-life physical goods. The platform lets users shop NFTs from a wide range of categories, including but not limited to sports, fashion, art, music, and much more. Some of the famous creators on the platform are Daniela Abdo, Festilia, Ingenieux, Marco Veronese, Paolo Socal, Scripofilia, and Svccy.
MetaBurnett’s dive into the web3 space has led to the launch of their phygital NFT collection called Luxlock. The brand launched its Supernova Scarf NFT, which includes a bundle of collectible NFTs, a real-life physical scarf, and much more. In addition, the brand also aims to play a vital role in contributing to social change.
Why is the Fashion Industry In The Forefront of Phygital NFT Adoption
Most of the early adopters of phygital NFTs were luxury brands in the fashion industry. In addition, the growing metaverse popularity needed a way for users to integrate their fashion wearables and other accessories into the virtual environment.
Apart from the fashion industry, there are many more industries with the scope of adopting phygital NFTs. For instance, automobile brands can bundle each vehicle with an NFT, which can be used by the buyer in the metaverse platform.
Summing It Up
Phygital NFTs are a boon to brands in enhancing the customer experience and making new income sources. In addition, phygital NFTs can also be effectively used by brands to battle against counterfeit products in the market, which can benefit both customers and brands.
The fashion industry has been a pioneer adopter of phygital NFTs. However, in the coming future, it is expected that more businesses across diverse sectors will adopt the phygital NFT concept.