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Why Luxury Brands are Jumping on NFTs
The need for an experience, a pleasurable feeling, or status is what drives consumer behavior and consumption. A large portion of goods communicates some kind of status within a group, where status is defined as what the group values. With luxury brands, acquiring social standing can be accomplished through the purchase, use, and display of their luxury goods. Having a physical good alone is one thing, luxury brands now want you to own and flaunt their digital asset as well. This is why NFTs are being prioritized by some brands as a marketing tool as the fashion industry seeks to embrace and incorporate tech into their brands to stay in touch and connected to their evolving community.
Growing significantly since 2020, NFTs are not only made by the known artists such as Pak, Beeple, etc. We see luxury brands joining the NFT party with extraordinary collaboration.
#1: Louis Vuitton
To celebrate their 200th birthday anniversary, Louis Vuitton (LV) launched an adventure-based game designed by artist Beeple that can be downloaded for free called “Louis The Game”. If you make it throughout the game that requires you to pass 6 stages and collect all 200 candles, you will be rewarded with 30 pieces of collectible NFTs.
In 2021, LV released a limited edition NFT collection called "The Icon and the Iconoclasts," which featured works by artists who were given free rein to interpret LV's iconic monogram print. The NFTs were sold through a partnership with Christie's auction house and were highly sought after by collectors.
In 2022, LV released a second NFT collection called "The Virtual Voyage," which featured works by artists such as Kaws and Takashi Murakami. The collection was inspired by LV's history of travel and was sold through a partnership with blockchain platform Rarible. In the same year, LV also released an NFT experience called "The Virtual Fashion Show," which allowed users to virtually attend the brand's fashion show and purchase limited edition items and experiences through an NFT marketplace.
#2: Burberry
In 2021, Burberry released a limited edition NFT collection called "The Monogram," which featured works by artists including Trevor Jackson and Tyler, The Creator. The NFTs were sold through a partnership with blockchain platform Arianee and were inspired by Burberry's iconic check pattern.
In 2022, Burberry released a second NFT collection called "The Archive Reimagined," which featured works by artists such as Faith XLVII and Josie Bellini. The collection was inspired by Burberry's archive of garments and accessories and was sold through a partnership with blockchain platform Artory. In the same year, Burberry also released an NFT experience called "The Virtual Runway," which allowed users to virtually explore the brand's fashion show in real-time and purchase limited edition items and experiences through an NFT marketplace.
#3: Givenchy
In 2021, Givenchy released a limited edition NFT collection called "Virtual Givenchy," which featured works by artists such as Daniel Arsham and Jonas Wood. The NFTs were sold through a partnership with blockchain platform OpenSea and were inspired by Givenchy's iconic fashion and accessories.
In 2022, Givenchy released a second NFT collection called "The Future of Fashion," which featured works by artists such as Beeple and Ai-Da. The collection was inspired by Givenchy's vision of the future of fashion and was sold through a partnership with blockchain platform Nifty Gateway. In the same year, Givenchy also released an NFT experience called "The Virtual Atelier," which allowed users to virtually explore the brand's atelier in Paris and purchase limited edition items and experiences through an NFT marketplace.
#4: Gucci
In 2021, Gucci released a limited edition NFT collection called "The Virtual Atelier," which featured works by artists such as Trevor Andrew and Angelica Hicks. The NFTs were sold through a partnership with blockchain platform SuperRare and were inspired by Gucci's history and craftsmanship.
In 2022, Gucci released a second NFT collection called "The Future of Luxury," which featured works by artists such as Josie Bellini and Rafael de Cárdenas. The collection was inspired by Gucci's vision of the future of luxury and was sold through a partnership with blockchain platform Artory. In the same year, Gucci also released an NFT experience called "The Virtual Showroom," which allowed users to virtually explore the brand's showroom in Milan and purchase limited edition items and experiences through an NFT marketplace.
#5: Jimmy Choo
In 2021, Jimmy Choo released a limited edition NFT collection called "The Virtual Showroom," which featured works by artists such as Daniel Arsham and Jonas Wood. The NFTs were sold through a partnership with blockchain platform OpenSea and were inspired by Jimmy Choo's iconic shoes and accessories.
In 2022, Jimmy Choo released a second NFT collection called "The Future of Luxury," which featured works by artists such as Beeple and Ai-Da. The collection was inspired by Jimmy Choo's vision of the future of luxury and was sold through a partnership with blockchain platform Nifty Gateway. In the same year, Jimmy Choo also released an NFT experience called "The Virtual Runway," which allowed users to virtually attend the brand's fashion show and purchase limited edition items and experiences through an NFT marketplace.
In collaboration with graffiti artist Eric Haze. Jimmy Choo held an online auction for a specially created trainer that can only be purchased digitally. The items will be introduced through the purchase of a mystery box. One of four NFTs representing a high-heel shoe, one of which is randomly chosen for each package. These range from Super super rare (SSR) to neutral (N) in terms of scarcity. 8,888 boxes will be made accessible for purchase in total. If a collector obtains an NFT from the second and third levels of scarcity, they will be entered into a drawing for another rare NFT, of which only 100 have been produced.
NFT Adoption to Grow Further
According to Cameron Roddha of myNFT.com, a platform whose goal is to make NFTs available to everyone, premium brands focus on creating memorable experiences through storytelling to draw in and keep customers. "With the introduction of NFTs, their customers will finally be able to own a portion of that narrative for themselves. Offering this to an audience that cherishes exclusivity and heritage touches a very strong chord,” he claims. "A premium brand intends to attract a young, wealthy, influential, and digital audience by launching an NFT.", according to Daniel Langer, CEO of luxury brand strategy consultancy Équité, in particular generation Z and millennials.
However, a sound approach is required for success. A brand must have a thorough understanding of the NFT market and the true potential and impact of the technology to reduce further risk. Not only wanting to appear unique, follow the trends, and participate in what is trendy right now as a passing fad. NFTs are still seen as a fresh and interesting genre, so mistakes are considered inevitable. Some forecast that by 2025, the market for NFTs will exceed that for traditional painting. NFTs have probably been around for ten years, but it has only been in the last 2 - 3 years that they have really taken off. The coursework has been significant, but adoption has been rapid.
Brands that take pride in their innovativeness should start considering how NFTs might benefit their operations because it is only a matter of time before they become the norm.