A rapid acceleration, backed by high demand in the fashion industry, is currently underway. The consumer market, in general, is ever complex. The ways to lure luxury goods customers are hard due to varying tastes. Interestingly, the luxury markets are ready to subscribe to the latest technology and pop culture.
Luxury brands in the past accepted embracing the technology and applying it to the product design. Subscribing to virtual experiences and collaborating with tech brands have led them to enjoy a greater appeal. Many brands use virtual experiences as an integral part of their marketing strategy. No one can deny that the integrations will only grow stronger and further in the days ahead.
The rapid growth of cryptocurrencies motivates luxury brands to subscribe to the latest trends. A cryptocurrency exchange helps the users have access to several cryptos. Several players like OKX are proving to be a great aid in this respect. How will the luxury brands treat cryptos in the days ahead?
Use of Blockchain
LVMH has come out with a blockchain consortium called Aura for tracing and tracking luxury goods. It will help to keep a tab on the movement of the goods from its initiation with raw materials to its endpoint delivery at the point of sale. This step will ensure consumers have proof of authenticity with relevant product history.
Whether the majority of the luxury brands accept this tech improvisation or not is still doubtful. Cryptocurrency is one of the most disruptive technologies of the last decade. A few organizations like WeWork and Time Warner accept bitcoin payments as valid payment methods.
Luxury brands faced heat in the past few years due to an ongoing pandemic. An increasing number of people opted for fintech products, including cryptos. It is primarily due to tackling the price drop in the stock market amid financial worries.
The above led to a bull run for bitcoin in 2020 like never before. This phenomenon triggered rapid growth in the overall crypto space. However, the critical aspect propelling the growth of cryptos was due to the luxury market. Therefore, it is essential to understand that Gen Z and the millennials are betting big on cryptos.
Adoption of New Business Practices
Experts in the fashion industry suggest a few critical factors should be in place for businesses to sustain and grow during challenging times. These are specific to adapting to new ways of doing business during volatile market conditions. Drafting a cryptocurrency strategy is a step in the right direction toward fulfilling your respective needs.
It is worth mentioning that a few luxury brands already understand this aspect and are taking steps toward the same. These brands announced policies to ensure pro-crypto steps during the past few years.
In 2018, Hublot, the luxury watchmaker, revealed a new watch, Meca-10 P2P, under Big Bag Line especially designed on bitcoin. The launch of the watch was symbolic of the 10th anniversary of bitcoin. Bitcoin enthusiasts and others can purchase the watch only with bitcoin payments. The transfer will take place with a code etched on the watch, costing around $ 25,000.
Hublot started accepting payments via cryptocurrency in 2021. This step makes the Swiss watchmaker join the group of other watchmakers like Norquin and Frank Muller. These luxury watchmakers also accept crypto payments from 2020.
The interest in crypto is not only limited to the watchmakers. Many other luxury brands like Yacht makers announce their plans to start accepting crypto payments for the purchase or lease of their yachts. The primary tokens that they support include Litecoin and Bitcoin.
Therefore, as you can see, with blockchain, fashion brands can keep a tab on the entire life cycle of a good. The technology will help
- Keep a record of the logistics chain and its variables
- Grab the specific data points like claims on sustainability certifications
- Help give access to the data sets
A significant reduction in the overhead cost is possible using blockchain technology for fashion brands. These brands can look forward to getting
- Improved management tools
- Enhanced logistic systems
- Reduced risk of counterfeit products
These steps together will help increase the trust in the system while outsourcing a product overseas. The easy reconciliation of data and its integration across numerous service lines is a key proposition of blockchain technology. A greater push to increase the areas between digital and physical worlds is underway through NFTs and collectibles via posh art expos.