The transparent nature of web3 makes it possible for fashion firms can use it to develop new business strategies, put anti-counterfeit measures in place, and engage with customers and communities through tailored experiences. Now that brands are introducing their Web3 plans, the emphasis is on longer-term value alignment for their NFT holders rather than immediate financial rewards.

Among the companies who have already introduced their own NFT collections are Louis Vuitton, Gucci, Prada, and Paco Rabanne. A few of these fashion NFT initiatives were released in conjunction with actual items from their vintage or limited edition collections.

Web3 also tackles supply chain traceability and transparency, two major problems facing the fashion sector. A tamper-proof blockchain ledger may be used with Web3 to record each stage of the supply chain, allowing for safe, decentralized monitoring of items from the point of manufacturing to the point of sale. The solution to problems like counterfeiting and breaches of human rights lies in this immutability.

Increased traceability and transparency can aid in stopping environmental damage, human rights abuses, and other unethical behavior common in the fashion business. This is reliant on the ability and willingness of each party in the supply chain to input this data onto the blockchain, though.

Gucci's two-part SUPERGUCCI NFT collection was so well received that the Web3 firm it collaborated with to introduce the collection went on to secure agreements with other big companies aiming to debut their own collections and raise over $38 million.

One of the best examples of a label that has connected the realm of NFTs with tangible goods is the upscale jewelry line Tiffany & Co. Owners of well-known NFTs, like CryptoPunks, are able to profit from their assets because to intellectual property rights. The label has taken use of this chance to create jeweled NFTiff pendants that are specially made for CryptoPunk owners. These pendants showcase each owner's unique Punk in a tangible form.