PROSPECTING CONSUMERS’ INTEREST FOR FASHION NFT IN INDONESIA

• Main Author: Maheswari Syailendra, Gina
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/66984
• Institution: Institut Teknologi Bandung

In the past few years, Non-Fungible Token (NFT), a derivative product of blockchain technology, has stolen headlines all over the globe with its groundbreaking sales auction and prominent celebrity buyer. NFT is based on blockchain technology, a system of recording information in a way that makes it really difficult or nearly impossible to change, hack, or cheat the system. Through NFT, now people are able to have digital ownership and scarcity over assets including images, videos, sound, and text, while also allowing creators or artists to get ongoing royalties and ensure assets’ authenticity. At the same time, fashion, a trillion-dollar industry that has gone through a rapid digital transformation due to Covid-19, is looking for new ways to be relevant to the younger generation. Facing the trend of digital assets, industry players all over the globe try to make their move and find out how they can leverage this technology to further develop their products. As the largest country in Southeast Asia, Indonesia is one of the most potential markets for fashion NFT. Thus, the objective of this paper is to define the prospect of consumers’ interest in fashion NFT in Indonesia. The two hypotheses proposed are that Indonesian consumer are potentially interested in fashion NFT products and pairing digital assets in the form of NFT with tangible products will enhance customer willingness to purchase fashion NFT products. The research is validated through quantitative studies of questionnaires as well as qualitative studies from interviews and case studies. In addition, secondary sources are added to gain insights regarding the topic. Contingent on the results analyzed, it is fair to conclude that Indonesian consumers are interested in exploring fashion NFT products. The group that is most likely to become the market for fashion NFT is the one who has previous knowledge regarding blockchain, cryptocurrency, or NFT and is dominated by adults in their twenties. Some factors that encourage them to purchase blockchain assets are the money from trading, the guarantee of authenticity, the art, the social status that they will get, and their fear of missing out. On the other hand, some of the challenges that prevent them from jumping into digital assets are lack of government regulation, high-risk assets, lack of track record, fear of scams, and lack of time to study the assets themselves. Answering the second hypothesis, the questionnaire and case studies from RTFKT, Gucci, and Dolce & Gabbana can reflect a positive outcome from pairing digital assets in the form of NFT with tangible products. In the end, the author agrees that there are great challenges that exist in this early stage of technology, but the prospect of the use of blockchain technology and NFT in the future is positive. The researcher recommends fashion companies explore how blockchain technology and NFT can better leverage their business. The interests exist, but companies should first educate the market about how the technology (blockchain, cryptocurrencies, and NFT) works, making customers understand its potential, risk & benefits, and how it works to maximize the potential. A great target market for fashion NFT is adults in their twenties who are more familiar with the technology, more prone to taking the risk in the volatile market, most are making their own income, and craving for something new.