Limited or Limitless? Exploring the Potential of NFTs on Value Creation in Luxury Fashion

Abstract

Abstract Accelerated by the global pandemic, the speed of technology adoption has significantly increased, resulting in new business opportunities, channels, touchpoints and digital toolkits. One such burgeoning technology which is generating increasing attention is Nonfungible tokens (NFTs). Adopting an exploratory approach, this study aims to develop a deeper understanding of the value of NFTs from a luxury business and consumer perspective. Taking a qualitative approach, interviews were conducted with luxury experts and consumers, totaling 11 informants. Our findings revealed new technology acceptance and value dimensions in addition to the existing dimensions from literature, within a luxury context, from which two models ensue, NFT value creation and NFT digital strategies. The research makes a valuable contribution to the paucity of existing scholarly studies on blockchain and NFTs and their value creation within a luxury context. It serves to provide preliminary insight into perceptions toward and potential value creation of NFTs for both luxury industry and consumers to inform future luxury digital strategies.