It is often said that numbers don’t lie, and the current value of the global fashion industry proves just how big of a deal it is. With a worth of about $1.84 trillion, the industry stands as one of the largest and most important industries. Interestingly, the fashion market actually spreads over all continents, and the demand is up both in developed and developing nations.
And don’t just think clothing, because fashion is more than that. Think shoes, eyewear, jewelry, bags and so on. In fact, you might be surprised to find out that over 4 billion people in the world wear glasses.
Well, regardless of whether the glasses are for vision correction or otherwise, eyewear is a big player in the fashion game. Now, even as the world is becoming more technologically inclined, the fashion industry has not been left behind, welcoming innovations like crypto. And to learn more about how it can benefit from digital currencies, keep reading.
Accepting cryptocurrency as payment
Imagine walking into a fashion or eyewear store that can actually allow you to pay for goods using cryptocurrencies like Bitcoin and Ethereum, or even stablecoins like USDT. This is no longer a dream but a reality because in August 2021, Philip Plein International Group made history as the world’s first fashion brand to accept crypto payments.
In 2022, more luxury fashion houses like Farfetch, TAG Heuer and Gucci followed suit, accepting crypto even for accessories like watches and sunglasses, especially in their online stores.
This crypto acceptance is not just a passing trend but a transformative move for the fashion industry in many ways. Firstly, since crypto is borderless, brands that include it as a payment option can access a more global market because they allow their customers to shop without worrying about crazy exchange rates and international fees.
This is appealing to a large audience, considering the rates at which crypto ownership is accelerating. As of 2024, over 562 million people worldwide owned some kind of cryptocurrency, which was a 33% leap from the previous year.
Also, nobody likes hefty transaction fees because they eat into money that you would have otherwise used to add a statement piece to your closet or for something else. Thankfully, crypto transactions reduce these costs significantly by taking them as low as under 1%, which is nothing compared to the 3-5% that credit card processors charge.
This allows you to save money per purchase, especially when buying highly priced items. Plus, crypto transactions also save you a lot of time because you no longer have to wait for up to 5 business days for a transaction to process, like with traditional bank transfers– you just need seconds to minutes, or even milliseconds for cryptos like Solana.
Creating and selling NFTs
Non-fungible tokens are becoming more popular by the day, particularly because they allow you to own something unique that no one can copy virtually. Fashion and eyewear brands can use NFTs to sell digital versions of their products as a way to engage with the younger, tech-savvy customers.
As a matter of fact, Ray-Ban already launched a pair of NFT sunglasses in 2021. This piece of digital artwork, designed by 3D artist Oliver Latta in 2021, was auctioned on OpenSea, with the proceeds going to charity.
Just like launching a limited edition of sneakers or watches, brands can create NFTs to represent unique collections to bring a sense of exclusivity. This is actually good for driving sales by increasing demand because, according to the psychology of scarcity, when something is perceived as limited in quantity or availability, its perceived value increases, and so does the urgency to buy it.
Plus, NFTs will result in new sources of revenue for the fashion and eyewear brands, minus the hassle of a physical inventory. Imagine being able to sell thousands of limited NFT glasses or digital fashion items in seconds without physical production and shipping.
The fashion industry can also go the phygital direction, a concept where they can blend physical items with digital ones. For example, the luxurious Dolce & Gabbana sold its “Collezione Genesi” for about $5.7 million in ETH, a nine-piece NFT collection that paired digital assets with physical couture.
Also, you would probably love it if you got physical sunglasses for every NFT pair you bought – kind of like a double value experience. Plus, you could unlock various exclusive perks such as early access to limited collections, private events and so much more just by simply owning an NFT.
Including crypto-based loyalty programs
As a way of rewarding the loyalty of their customers, fashion and eyewear brands can offer digital tokens as part of their programs. It would probably be amazing to earn crypto tokens rather than just the traditional points for actions like shopping, sharing or even reviewing.
This gives your customers something of real value that can be used in various ways or even traded if the brand allows. Adidas is already doing it through “ALTS,” a Web3 loyalty program that grants its ALT token holders access to NFT avatars, early access to limited drops and other perks.
As the fashion industry continues to advance, it is evident that incorporating crypto in its journey would unlock new opportunities for the different fashion and eyewear brands and also for the customers.
