Luxury Meets Crypto
Some luxury brands are already part of the crypto world, including Gucci, Louis Vuitton, and Prada.
Global luxury brands have increasingly expressed an interest in the world of cryptocurrencies despite the bear market.
Jacob & Co revealed it would showcase the all-new Astronomia Solar Bitcoin limited edition at the World premiere at ‘The Geneva Watch Days’ by appointment only. A bitcoin-themed watch inspired by cryptocurrencies.
Crypto products are viewed as better investments than traditional assets; in September 2020, the Hermès Birkin bag outpaced both the S&P 500 and the price of gold since its first year of production in 1981.
NFT trademarks have surged as more brands jump in. As per a Finbold report, NFT-related trademarks in the United States between January 1 to May 31, 2022, hit 4,049. In this case, on average, 27 new NFT trademarks were filed per day over the reviewed period.
There are a few reasons why luxury brands might be interested in exploring crypto.
- First, the Metaverse provides a unique and immersive experience that can be leveraged to create exclusive and differentiated customer experiences.
- Second, NFTs offer a new way for luxury brands to create and distribute digital content and experiences, which can be used to engage and connect with customers more interactively and engagingly.
- Finally, NFTs offer a new revenue stream for luxury brands, as they can be sold or traded on secondary markets.
Few examples of how a brand can make money using crypto.
- Creating and selling NFTs that represent their products or services.
- Using the Metaverse or NFTs to promote their brand and drive traffic to their website or online store.
- A brand can also use the Metaverse or NFTs to create a new revenue stream by selling virtual goods or services.
Recently Tiffany & Co. created a special edition NFTs pendant, sold at $50,000 each.
Other success cases are:
RTKFT; this brand has developed its lineup by partnering with “The Fabricant” to create a new collection of 7 virtual items receiving 8 million USD in their latest round of fundraising. This is why Nike plans to serve and grow RTFKT’s creative communities and extend Nike’s digital footprint too.
Gucci; GUCCI became the first luxury brand to delve into the forays of NFTs. A 4-minutes short film inspired by their “Aria” collection in collaboration with Alessandro Michele was sold at Christie’s auction for 25,000 million USD.
Overpriced; The OVERPRICED brand (actually the name of the brand) has designed a real-life hoodie with a scannable code this allows the owners to show it off. This hoodie is sold on the NFT platform “BlockParty” for 26,000 USD.
Dolce & Gabbana — Genesi NFTs; The 9-piece collection was auctioned for USD5.56 million during Venice Fashion Week. Buyers received the NFT, a physical version, and exclusive access to D&G events.
We can say for sure that the fashion industry is welcoming blockchain technology.
But; Is crypto only hype, FOMO, or just a new way of doing business?
What do you think?
