Under the Metaverse boom, is the NFT of the fashion circle the new wealth code?

NFT may be a bubble, but it will also leave good things behind.

Recently, Adidas launched a series of NFTs called “into the Metaverse”, which earned about 23 million U.S. dollars.

This NFT product of Adidas includes a virtual wearable device that can be used in the blockchain game world The Sandbox. In the real world, there is also the same sports suit of Ape Indigo Hertz and a hoodie with a blockchain address. And other physical products. The sale took only a few hours. Except for the 380 NFTs reserved by Adidas, the remaining 29,620 NFTs with a price tag of 0.2 Ethereum were all sold out.

Under the Metaverse boom, is the NFT of the fashion circle the new wealth code?

Into the Metaverse NFT launched by Adidas

Not only Adidas, but the fashion brand Coach also recently launched its first NFT series Snow City, which contains 80 digital art works. The first holder of each Coach NFT will receive a free customized Rogue handbag next year.

Under the Metaverse boom, is the NFT of the fashion circle the new wealth code?

Coach’s NFT collection contains eight of the brand’s iconic Coach Holiday animals

Earlier, there were Nike, Gucci, Louis Vuitton and other brands involved in NFT. Sports items and fashion items have been extended to the virtual world, and are no longer limited to wear in the traditional sense. It is clearly used for products and brands that are “used” in reality, why can they also be NFT?

Marketing: topics, traffic and young people

NFT (Non-Fungible Token) ranked first in the Collins Dictionary’s annual hot word list with the concept of “digital proof of artwork or collection”, and even the popular concept word “Metaverse”.

Collins said that the popularity of NFTs has risen sharply in 2021, and the utilization rate has increased by 110,000%. In the official blog of the Collins Dictionary, the importance of NFTs in 2021 was once again emphasized: “NFTs are big in 2021.”

Now that marketing methods are increasingly focused on social media and digital content, bundling topics with such a high degree of attention can be a marketing method to enhance brand influence.

Pizza Hut’s pixel pizza NFT is a very typical marketing case-Pizza Hut Canada auctions each pizza NFT 0.0001ETH (approximately US$0.18). According to Pizza Hut’s marketing intentions, through NFT, everyone can All can afford pizza.

Under the Metaverse boom, is the NFT of the fashion circle the new wealth code?

Pizza Hut “1 Byte Favourites” NFT project

Pizza Hut’s NFT marketing has received a lot of attention from pizza lovers, so that it has gradually become a regular event. According to reports, every week Pizza Hut will release a slice of new flavors of pizza NFT, such as Hawaiian pizza, pepperoni pizza, and the price of the new NFT has reached 5ETH (about 9,000 US dollars).

Similarly, the NFT launched by Charmin, P&G’s toilet paper brand, is named “NFTP”-the acronym for “Non-Fungible Toilet Paper”, which means non-homogeneous toilet paper.

Under the Metaverse boom, is the NFT of the fashion circle the new wealth code?

Non-Fungible Toilet Paper-Non-Fungible Toilet Paper

This funny name has brought a very high degree of topicality. The price of “NFTP” once reached about US$264.72. The brand said that the proceeds from “NFTP” would be donated to charities. This marketing event is both for Charmin opened up its popularity and set up a wave of brand personality to give back to the society.

For a large number of luxury and fashion brands that are trying their best to get close to young consumers, NFT, which is closely related to digital art and aesthetic propositions, has naturally become a marketing tool that cannot be missed.

Among the consumers of luxury goods, the post-90s and post-00s have gradually become the main force. The new generation of young consumer groups grow up in the digital age. Brand preferences, consumption habits, and information reception channels are completely different from the main groups that consume luxury goods in the past. The marketing logic of these old-school luxury brands must also match.

Louis Vuitton and Burberry respectively designed limited skins with brand characteristics for the characters in “League of Legends” and “King of Glory”, allowing players to dress themselves up with luxury clothing in the virtual world.

Under the Metaverse boom, is the NFT of the fashion circle the new wealth code?

Louis Vuitton’s skin for the hero Qiana

For luxury brands that want to reach young user groups, cooperating with the hottest games nowadays not only directly obtains young traffic, but also builds a youthful brand image in a way that is close to the hobbies and values ​​of young people.

The emergence of NFT has created the possibility for luxury brands to be understood and accepted by more young consumers.

In August of this year, Louis Vuitton launched an NFT game called “Louis: TheGame”.

In this game, players can collect candles by controlling Louis Vuitton’s classic dolls, unlock different postcards, accessories, and enter the next map. Players who complete the game may be drawn to the NFT of cooperation between Louis Vuitton and encryption artist Beeple.

Under the Metaverse boom, is the NFT of the fashion circle the new wealth code?

“Louis:TheGame” game screen

The NFT work of the encryption artist Beeple is the representative work of the NFT-“Every Day: The First 5000 Days”, which was sold at a high price of US$70 million at Christie’s auctions.

From a marketing perspective, the first echelon brand of luxury goods, artists with sky-high prices, a valuation of up to 20 million US dollars, and the latest NFT concept, Louis Vuitton’s marketing is undoubtedly out of the circle.

After the launch of “Louis:TheGame”, it quickly squeezed out of “Glory of Kings”, which has always occupied the top spot, and became the most downloaded game APP in the Apple Store.

Many of the players who download this game are not for the game itself, but for the 30 Louis Vuitton NFTs. After all, from the perspective of game experience, the gameplay and plot of “Louis:TheGame” are not too new, but it is possible to get the only expensive but free Louis Vuitton in this life.

BURBERRY cooperated with a game company this year, in its blockchain game “Blankos Block Party”, launched an exclusive NFT character-Sharky B, and integrated the NFT into the game’s costume props for in-app purchase.

Under the Metaverse boom, is the NFT of the fashion circle the new wealth code?

Burberry’s NFT character Sharky B

In the October Tmall digital collection event, there was a digital collection created in the image of BURBERRY’s classic Bobolu, named “Digital Elf”. In its introduction, “Digital Wizard” is a digital collection tailored for BURBERRY by AYAYI, a super-realistic digital person.

When consumers buy this limited digital collection, they will also get a limited edition scarf from BURBERRY in reality.

Under the Metaverse boom, is the NFT of the fashion circle the new wealth code?

The NFT in the above cases is more in line with the concept of hype in the consumer and fashion industries. The main purpose is to increase the added value of the product, or to attract the attention of young consumers and the media, so that the brand can gain more topics and exposure in a short time. The focus of the brand is still on the physical level rather than the virtual level.

Entry: Everything can be Metaverse

On the other hand, the actions of some brands also revealed the Metaverse characteristics and ambitions of the layout.

NFT has the characteristics of being unique, non-tamperable, and permanently preserved. It is a unique identification code and metadata. Because of this, NFT allows people to clarify the ownership of digital assets in the digital world, and it is also a bridge connecting physical world assets and digital world assets, providing a foundation for Metaverse.

Adidas plans to create a “Metaverse virtual land experience” after 2022. Adidas purchased virtual land in The Sandbox, a blockchain game world, and those users who purchased Adidas NFT can get exclusive access to the product. This virtual community is equivalent to a VIP club in the real world.

In November, adidas announced the establishment of a partnership with the cryptocurrency exchange Coinbase, and the first collaboration with NFT project Bored Ape Yacht Club, NFT comics Punks Comic and NFT collector G-Money to launch the “boring ape”, marching into the Metaverse.

Tareq Nazlawy, senior director of digital growth at Adidas, said: “This is a replica of our normal business model (making things and wanting people to buy them). You are not just buying products, you are becoming a member of this community.”

In addition to Adidas, Nike, another sports brand giant, is not small. It just announced the acquisition of RTFKT Studios, a virtual sneaker manufacturer, which is considered to be another step in Nike’s Metaverse layout.

RTFKT Studios was established in 2020 and is a studio that only sells NFT sneakers. They once launched an NFT sneaker and sold 621 pairs in 7 minutes, with sales reaching 3.1 million US dollars.

Under the Metaverse boom, is the NFT of the fashion circle the new wealth code?

Virtual sneakers designed by RTFKT Studios inspired by Tesla’s electric pickup Cybertruck

So far, this studio has cooperated with many well-known designers and companies such as Lexus, Takashi Murakami, Jeff Steiber, etc. The NFT project “CLONE X” launched in cooperation with Takashi Murakami, the transaction volume has exceeded 65 million U.S. dollars.

The acquisition of RTFKT Studios is obviously not Nike’s impulse move. Prior to this, Nike appointed the former director of innovation engineering Andrew Schwartz as the director of engineering of Metaverse, and began to recruit virtual material designers. In the following month, Nike submitted several trademark applications for virtual products, including the swoosh logo and the “Just Do It” slogan, which means that in addition to physical products, Nike will also start selling digital products in the future.

Nike also cooperated with Roblox, the first unit of the universe, to develop Nikeland, a virtual sports park.

Under the Metaverse boom, is the NFT of the fashion circle the new wealth code?

Nikeland Virtual Sports Park

In Nikeland, users can dress up virtual themselves by unlocking various virtual Air Force 1, Nike Blazer and other clothing and sneakers. There are also various Nike-themed buildings, runways and arenas. Users can bounce on trampolines, and Nearby players can play hide and seek, or parkour on the glowing magma track. According to Nike’s description, Nikeland will continue to update virtual content in the future, including, for example, adding star athlete characters or branded products, and even simulating international events, such as the World Cup or Super Bowl.

Nike CEO John Donahoe believes that the accelerated shift of consumers to digitalization will continue to exist, and digitalization is driving Nike to create the future of retail. Nike’s chief financial officer Matt Friend once stated at the earnings conference that Nike is capable of realizing its vision of having 40% of its digital business in fiscal year 2025.

When most luxury brands use NFT for marketing and promotion, Balenciaga publicly stated in early December that it would participate in the development of Metaverse related industries.

Before officially announcing its entry into the Metaverse development, Balenciaga created costumes and props for the characters in “Fortnite”. Gamers can purchase these costumes in the real world and the game world to dress up their real self and the game. In the middle. The brand has also established an independent virtual fashion business department to explore opportunities in the fashion industry of Metaverse.

Under the Metaverse boom, is the NFT of the fashion circle the new wealth code?

Balenciaga’s costumes for the characters in Fortnite

Essentially, buying NFTs and buying luxury goods have a certain commonality-consumers buy a luxury bag out of recognition of the value of the product, which is reflected in the recognition of the brand’s status and scarcity in the culture, rather than Whether the material of this bag is strong.

The executive vice president of GUCCI publicly stated to the media in March this year that it is inevitable that luxury brands will enter the NFT. About half a year after this statement, it has been reported that the parent companies of luxury brands such as GUCCI, Balenciaga, Marni, etc., have begun to form teams to support their brands to develop products with the concept of Metaverse.

How many bubbles does the NFT of fashion consumer goods contain?

In the imagination of many people, the Metaverse is a virtual world parallel to real life. People’s aesthetic and individual pursuits will certainly extend from reality to the virtual digital world, and even put forward requirements that are more special and difficult to achieve than real life.

These NFTs, which are tied to real brands, can also construct self-identity and value recognition for people in the virtual world. At the same time, since each NFT is unique, it can accurately show the world the product belongs to, whether it is speculative or hobby, it brings satisfaction to buyers to a certain extent. Especially luxury NFTs, give buyers a more unique shopping experience than the various “limited editions” and “co-branded items” in the real world.

According to Morgan Stanley’s estimates, by 2030, the global NFT market will grow to US$300 billion. Among them, the luxury goods group may profit from 10 billion to 15 billion euros from the sale of NFT goods, occupying 10% of the global luxury goods market.

But how many bubbles are there in the NFT of these fashion consumer brands? Many people think that the proportion of hype marketing is still higher than that of the side that tested the waters of the universe.

The current technology is not enough to support the imaginary system, and the Metaverse is still at the conceptual level and is still in the early stages of development. From this perspective, these NFT products are closer to the brand and opened up a new product line, but this product is a digital product based on blockchain confirmation.

This is the same as the previous development of online channels and social platforms for these brands. Digital transformation is an important topic for attracting young consumer groups. Marketing content is also the same as the concept of bundling street culture and rap culture in the past. It seems that they have not played with NFT and Yuan. Universe, this brand is not suitable for being worn and used by avant-garde and trendy young people.

Forbes fashion reporter Joseph DeAcetis believes that NFT is the fashion industry “the only hope for returning to the fast-paced technology train.” At present, many brands adopt the form of bundling NFT and physical products. DeAcetis believes that this model of NFT fashion is not to replace physical clothing with digital clothing. On the contrary, it is an opportunity for fashion brands to show themselves in the digital space and open up new product markets.

Just like the mentality of many Internet companies deploying Metaverse, these fashion consumer brands are also worried about losing the dividends of new outlets.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/under-the-metaverse-boom-is-the-nft-of-the-fashion-circle-the-new-wealth-code/
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