Is NFT really the future for beauty and perfume brands?

There is not one day without an article about the new fad called NFT. Like a bad penny, NFTs (the abbreviated term for NON FUNGIBLE TOKEN) have arrived in our daily lives. As a real dummy about blockchain technology, I had to look for the meaning of what NFTs are to try to understand how they ended up in the beauty, luxury and perfumery industry among brands such as LVMH.

• NFTs (non-fungible tokens) are unique cryptographic tokens that exist on a blockchain and cannot be replicated.
• NFTs can represent real-world items like artwork and real estate.
• “Tokenizing” these real-world tangible assets makes buying, selling, and trading them more efficient while reducing the probability of fraud.
• NFTs can also function to represent individuals’ identities, property rights, and more.
• Collectors have sought NFTs as their value initially soared, but has since moderated.

As I understand it, a NFT is like having a unique piece of an item with a numbered certificate (like a Faberge egg; for example) but instead of having a piece of paper, you have a cryptographic token… In some instances, this token can be exchanged in the same way as a commercial transaction.

The idea sounds great! Except that in most cases, all I see are virtual avatars being auctioned. How great to own an avatar of a Givenchy dress that you can’t wear because it only exists in the metaverse. Why would I be interested in a Paco Rabanne artefact containing a ‘futuristic aromatic’ fragrance or a Barbie doll avatar? This is where it all becomes elusive for me.

It is like being part of a world made of intangible and abstract stuff. It is not the same as having a share certificate which you could swap or cash…or is it?

I am all ears if someone can enlighten me…