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The way you pay for products and experiences is nothing like it was 10 or 15 years ago. You can swipe your phone over a device at Sephora, scan a barcode to pay your bill at a restaurant, and now you might not even need a traditional bank account to shop in the store. beauty industry – or owning what you end up buying.
Today there is a whole new world of cryptocurrency and blockchain technology available, which started as a plausible system now for transactions (e.g. Bitcoin) but has now crossed the way we see ownership and creativity. some products. One of these new methods dominating the worlds of art, fashion and beauty is the non-fungible token (better known by its acronym, NFT). In fact, the TikTok video app recently announced that it is going to start selling its best viral videos for NFTs, which means someone could buy a makeup tutorial or beauty tutorial with digital currency and own this unique look as a collector’s item.
It’s not just TikTok, of course. More and more beauty brands – from Nars to Elf Cosmetics to Givenchy Beauty – are also experimenting with the digital token, which begs the question: will cryptocurrency change the way we trade and interact? with beauty? We explore everything you need to know about the trend below, including what it means for you.
What are NFTs?
NFTs are a digitized token that symbolically represents the original and authentic ownership of a virtual or physical object and idea. Essentially the original authenticity card, it digitally marks property and prevents theft, replication or modification of rights. These items and ideas can then be auctioned off and sold on blockchain platforms for as little or equal value. (Beeple’s artwork was sold for $ 69 million.) This gives creators, brands, and artists ownership of their own work, finding new value for creation while blurring the lines between inclusiveness and exclusivity, private and public.
NFTs have already made groundbreaking advancements in industries like luxury art and fashion, with Gucci and Virgil Abloh creating unique pieces that transcend preservation of property through a digital space, and now this technology is catching on. towards beauty.
NFTs and their impact on beauty brands
This year alone, beauty brands came out to explore NFTs with campaigns around exclusive products and artwork. Nars, for example, celebrated his blush hero Orgasm by ordering a collection of three NFT artworks from artists Sara Shakeel, Azéde Jean-Pierre and Nina Kraviz. According to Dina Fierro, vice president of global digital strategy and brand social engagement, the goal was to “create unique digital works inspired by the sensory nature and unmistakable hue of Orgasm,” a- she told POPSUGAR. “As a result, we have seen a strong response to the pilot from our community as well as digital collectors, and we now plan to launch additional programs that integrate virtual goods in 2022.”
Givenchy Parfums has also teamed up with artists from Rewind Collective and London gallery owner and LGBTQIA + activist Amar Singh on a digital artwork NFT Pride. Next, Elf Cosmetics created NFTs that allowed customers to purchase their cult classic products such as Gold Saturated Poreless Putty Primer. By creating three of each for Elf’s Poreless Putty Primer, 16HR Camo Concealer, and Ride or Die Lip Balm (nine in total), the products have been listed for sale on the Bitski crypto platform, where the product can be purchased for the same price. than retail, but the chance for a member of the Elf Cosmetics community to purchase the rare and gold collector’s item.
Image source: Courtesy of Elf Cosmetics
“The rise of NFTs is driven by consumers’ passion for what NFTs stand for – it’s a new way for super fans to be part of the brands they love,” said Gayitri Budhraja, Brand Director for Elf Cosmetics. “Our goal was to explore new frontiers and disrupt the digital space with the launch of #CryptoCosmetics. We also looked at when to educate our community and help them explore the space as well. We designed the Ne.lfT to be accessible to everyone, so that anyone with a regular credit card can easily purchase one. ”
“When beauty brands properly use blockchain technology, they can have a positive impact on both sides of the business: commerce and marketing. ”
Experts say this new ability to shop for creativity and beauty products is going to have a bigger impact than we think. “Blockchain technology coupled with NFTs and cryptocurrency will be completely transformative for the beauty industry,” said Marc Beckman, founding partner and CEO of creative agency DMA United. “The decentralized nature of Web3 will provide brands and consumers with a clear path for direct interaction. When beauty brands properly use blockchain technology, they can positively impact both sides of the business: commerce and marketing. We saw this with Truesy’s program with Nars, where owners of the limited edition artwork were able to unlock access to physical merchandise. “
What beauty brands earn from NFTs
As NFTs are designed to grant ownership only to an original file, this calls into question what beauty brands will gain at this level of digital exposure. “Commercially, brands can create new sources of revenue and, for example, through primary and secondary sales of digital artwork, physical merchandise or live events,” Beckman said. “Brands can control their messaging and the flow of their products to market without the typical disruption caused by third-party retailers and media partners. ”
This will push brands towards unlimited intelligence capable of writing their strategy. He added: “A brand’s reality in the physical world doesn’t need to match its reality in the metaverse, because it can reach a new and younger audience, appear differently, and be active in new and exciting ways. “.
While not all brands need an NFT strategy, those that do are able to re-evolve, reconnect, and re-brand areas of the brand to a younger and numerically unfavorable target market. By increasing the level of connection between the brand and the consumer, NFTs represent an untapped opportunity for connection and creation. For the beauty industry as a whole, “NFTs have the potential to be harnessed in multiple ways: as a new medium for creative expression, as a mechanism to stimulate engagement, as a tool. to enrich loyalty and / or as an alternative source of income. consumers of beauty products are spending more and more of their time in immersive virtual spaces, ”said Fierro.
What NFTs Mean to You, the Beauty Consumer
In a market where the success of a brand and a beauty product depends on the physical and visible result, some may find that there is a disconnect between NFTs and the beauty consumer. Granting the owner nothing but ownership, NFTs are the token certifying the original file, but that’s where it changes the projection of beauty. Instead of a product being the only way to connect with a brand, NFTs provide the ability for people to purchase the brand, whether through digital collectibles, virtual goods, or classrooms. ’emerging assets, activating new, exciting and limitless ways to hyper- connect.
“We believe that NFTs will ultimately enable a deeper connection with Nars’ most passionate and passionate consumers, enhancing self-expression and creativity in immersive digital environments, including the metaverse,” Fiero said.
The downside of NFTs
While NFTs are an invigorating avenue for moving the beauty industry forward, we also can’t forget that it is relatively new with unexpected challenges. On the one hand, NFTs are considered a type of cryptocurrency and therefore like any financial risk it raises concerns about secure investing and especially long term investing at this minute the token may be worth thousands or even millions before the token is emptied. , losing its value and value. This is because they are currently based on aesthetic and sentimental value, so without any concrete basis, their value and value may be fleeting, which worries any consumer who buys them or wants to rely on them as a future investment.
Outside of the financial model, NFTs as a token secures the rights to the original idea, product, or illustration, but this does not prevent the original from being copied and distributed elsewhere. In addition to the risk of duplication, NFTs also face potential security holes, as hackers can gain access to the fully digital landscape while the current sustainability model still looms quite heavy on the earth due to its power and power. its use of blockchain.
It should also be noted that NFTs can have a negative impact on the environment.
It should also be noted that NFTs can have a negative impact on the environment due to the massive amount of energy and carbon emissions it takes to create them. While this is a hotly debated topic and one that requires more data on the magnitude of its carbon footprint and impact, the truth is that this model is not necessarily the most sustainable.
Ultimately, NFTs are new to the beauty world, and while exciting and interesting, can also come with challenges that have yet to be resolved. Still, it’s clear that they are leveraging a new hand in beauty and bringing themselves to the forefront of an expansive, digitized space. While from a brand perspective, not all beauty companies need an NFT strategy or product in order to cultivate revenue – and, in the same breath for the beauty consumer, while ‘it draws you into your favorite brand’s DNA by owning unique collectibles, it’s also a gamble on the speculative front of cryptocurrency and finance – you could call it a kind of investment that still finds its place in the industry.