The list of major luxury brands in Web3…
The prolonged crypto bear market since mid-2022 did not prevent major luxury brands from investing heavily in Web3 and developing immersive strategies.
Blockchain technology, decentralization, Metaverse, NTFs, DeFi and token-based economics are all part of what we know as “Web3”, the umbrella term for the next era of the internet. To have a better understanding of the fundamental characteristics of Web3 and its use cases, I highly recommend to read my previous article.
In recent years, the luxury industry has embraced Web3 with greater speed and enthusiasm than any other sector, and it seems that the technology will be crucial to the industry’s future success.
Metaverse: $50 billion revenue opportunity for luxury (*Source)
According to Morgan Stanley, digital demand for fashion and luxury brands is expected to grow and result in extra sales for the industry that could reach $50 billion by 2030. On the other hand, NFTs (non-fungible tokens) and social gaming could expand luxury groups’ total addressable market by more than 10% in eight years’ time and boost industry earnings by around 25%.
“The Metaverse will likely take many years to develop; however, NFTs and social gaming (e.g., online games and concerts attended by people’s avatars) present two nearer-term opportunities for luxury brands.”
Additional Data & Reports About Metaverse and Its Future
-Bloomberg > Metaverse will reach a market opportunity of $800 billion by 2024. (*Source)
-KPMG > Demand for luxury goods in the metaverse could reach $50 billion by 2030 (*Source)
-Gartner > 25% of people will spend 1 hour daily in the metaverse by 2026 either for work, shopping, education, social or entertainment. (*Source)
Web3 offers luxury brands a chance to revitalize their community-building strategies by offering customers more power in their interactions with their favorite brands. Web3 has a multitude of diverse and adaptable use cases. Among the most common examples are:
1) Creating limited edition and exclusive NFT collections: Luxury brands and NFTs both rely on limited supply and exclusivity to attract customers, which explains why they have been so quick to adopt Web3 technology, unlike other industries. There are different types of NFTS. For example, Proof of Attendance Protocol (POAP) is one of the forms of NTFs that verifies attendance at any type of event, whether virtual or in-person. Various use cases for POAP NFTs include: (*Source)
- Keeping track of event attendance.
- Becoming a community member to access private events such as adding pixels to digital art or attending weekly meetings.
- Requiring security clearance for private groups.
- Displaying a passion for someone or something by collecting collectibles.
- Giving awards for reaching certain milestones, such as being among the first 100 customers of a limited-edition item.
- Attending in-person meetups, voting on protocols, or participating in private chats.
2) Partnerships with marketplaces such as OpenSea or Rarible: As the co-founder of the largest NFT marketplace OpenSea shared on Twitter, there are more NFTs listed for sale in his marketplace than internet pages registered in 2010. The platform has more than 250 million digital objects.
3) Purchasing lands on virtual worlds such as Sandbox, Decentraland and creating unique virtual experiences.
4) Accepting crypto payments: As a recent example in 2022, FARFETCH started to accept crypto payments for all purchases, with plans to expand to FARFETCH private clients in the coming months and to all customers in the U.S., UK and Europe.
Now is the ideal time to build!
Pioneers and early adopters of Web3 will have a great opportunity to gain a competitive advantage. Rather than focusing on short-term achievements and attention-grabbing PR campaigns, now is the ideal time to educate, innovate, and develop long-term strategies that will ultimately make brands more viable when the next bull run begins in 2024–2025. (here is reason of countdown until 2024) Lastly, the Web3 community has a relatively short attention span and swiftly moves on to the next topic. That’s why while building the long-term strategy, it’s also crucial to be agile and experimental…
Many luxury brands are entering into Web3 and looking forward with optimism!
Here is a full list of major luxury brands in Web3 and how each of them is developing its own strategy for this new era. The ones marked with * sign are my top 3 favorite collaborations / projects. (*Each project below is hyperlinked)
*Louis Vuitton (LVMH) / Louis The Game (NFT Rewards)
Personally, my favorite project that has been launched in 2021 to celebrate Louis Vuitton’s 200th birthday. Louis The Game aims to educate players on Louis Vuitton’s 200-year history, savoir-faire and turns to randomly awarded free NFTs rather than an auction or priced sale. Louis The Game follows its protagonist, Vivienne, as she overcomes challenges and acquires candles and other collectibles. NFT artist Beeple designed 30 NFTs embedded within the game, which can be won by players. It has been downloaded more than 2 million times on both Android and iOS.I highly recommend to download and play the game on App Store and Google Play.
RIMOWA (LVMH) / NFT Collection on Rarible
“Blueprints from the Metaverse” has been created in partnership with design studio NUOVA. By utilizing RIMOWA’s iconic typologies, each NFT is accompanied by a handcrafted 1 of 1 collectible, blurring boundaries between physical and digital. The collection was avalible on Rarible.
Givenchy (LVMH) / Chito x Givenchy Collaboration NFTs
Creative Director Matthew M. Williams revealed the collaboration with artist Chito by designing 15 unique digital fashion NFTs. All NFTs minted on Polygon, an eco-friendly Ethereum-compatible network.
Marc Jacobs (LVMH) NFT & Metaverse Trademark Application
Marc Jacobs has filed a trademark application claiming plans for virtual clothing, footwear, fashion accessories, retail stores featuring virtual goods, marketplaces for digital clothing, and online communities for digital assets + NFTs.
*Fendi (LVMH) / Fendi x Ledger Crypto Hardware Wallet Case
Definitely one of my other favorite projects. Because ownership and security will be one of the most critical issues of this new era. (my previous article about #NYKNYC). Hence Fendi x Ledger is a great example to increase awareness of securing digital assets, and exceptionally with style :) It’s building a bridge for innovation, craftsmanship and heritage in physical and virtual luxury.
Hublot (LVMH) / Hublot x Takashi Murakami NFT Collection on OpenSea
Hublot and Takashi Murakami are pushing back the boundaries of artistic expression by presenting two NFTs. The first NFT, based on the All Black version, is a limited edition of 216, while the second, which will recreate the colours of the highly exclusive Sapphire Rainbow version, will have a supply of 108.
Tag Heuer (LVMH) / NFT Photo Viever on Tag Heuer Connected Calibre E4
Users can use their watch to display highly collectible virtual artworks on their wrist with verified proof of ownership. They transfer their favourite NFTs to their new Lens watch face and enjoy three exclusive high-fidelity layouts with time display.
*Tiffany & Co (LVMH) / 250 Limited Edition NFTiff CryptoPunks
One of my other favorite collaborations is the limited edition NFTiff CryptoPunks because it presents a great example of a phygital experience by creating the physical and digital version of the pendant. (Here is my previous article about this collaboration.) The NFTiffs, a collection of 250 digital passes available worldwide at nft.tiffany.com, were each priced at 30 ETH (about $50,000). NFTiffs could be purchased and redeemed by CryptoPunks holders for the production of physical pendant and digital artwork.
Hennessy (LVMH) / Exclusive NFT Membership & Café 11 NFT
Café 11 is a collaboration between Hennessy and Friends with Benefits to launch an exclusive web3 membership offering.
IWC / Diamond Hand Club in Metaverse
Diamond Hand Club in Metaverse provides access to IWC Watches & Wonders booth and the individual color worlds for all of the IWC Diamond Hand Club virtual events.
Panerai / NFT Collection with Radiomir Eilean Experience Edition
Panerai has blended history with modernity in its latest timepiece release. Only 50 models of the sailing yacht-inspired Radiomir Eilean Experience Edition has been created, alongside an exclusive collection of 50 NFT artworks that will accompany each purchase of this limited-edition watch.
Cartier / 150 Limited Edition NFTCartier Collection
Exclusive to 200 NFTCartier is a collection of 150 digital unique jewelry and accessories art by Cartier designs.
Hermès / Crypto & NFT & Metaverse Trademark Application
Hermès has filed a trademark application claiming plans for NFTs, virtual currency, crypto + NFT trading, virtual good marketplaces, virtual clothing, footwear, and fashion shows, and more.
Gucci / Omnichannel Web3 Strategy
Gucci builds a long-term and immersive strategy in Web3 ecosystem with multiple partnerships and collaborations such as: “Gucci Vault Land on Sandbox, Superplastic x SuperGucci NFTs, Vault Art Space on SuperRare, Gucci Town on Roblox, 10KTF Gucci Grail”.
Gucci defines its Web 3.0 Strategy as: “Metaverse is a multi-directional exploration spanning digital realms. Within this expanse of experimental creativity, NFTs and other Web3-based wonders will arise in surprising forms.”
Balenciaga / Crypto Payments
Starting in the U.S., Balenciaga accepts crypto payments at its flagship stores including on Rodeo Drive in Beverly Hills and on Madison Avenue in New York and online.
Balmain / Early Access to Product Drops, Access to In-store VIP Events With MintNFTx Balmain
The Balmain Thread is the fashion house’s bespoke edition of “The Club”, MINTNFT’s membership, loyalty, and rewards product that is powered by Web3 technology, including access to in-person and virtual events, rewards, community voting privileges and much more.
Off-White™ / Crypto Payments
Off-White™ is accepting crypto payments including Bitcoin, Ethereum, USD Coin and more. The brand also claims that there will not be a payment limit.
Philipp Plein / Lil Monsters Gang Art Collection by PHILIPP PLEIN x The Crypto Kings
The Lil Monsters Gang is the art collection created by PHILIPP PLEIN and ANTONI TUDISCO, The Crypto Kings.
Dolce & Gabbana / #DGFamily NFT Community
Dolce&Gabbana launched #DGFamily, an exclusive NFT (Non-Fungible Token) community in collaboration with UNXD, a curated marketplace for digital luxury and culture. The #DGFamily NFT community comes with a unique ecosystem of benefits for holders across both the physical universe and the metaverse.
Prada / Timecapsule NFT Collection
Timecapsule is renewed by entering a new phase and expanding its creative presence in the Web3 with the Timecapsule NFT Collection.
Ralph Lauren / NFT & Metaverse Trademark Application
Ralph Lauren has filed a trademark application claiming plans for virtual fashion shows, NFT backed multimedia, virtual hotels and restaurants, virtual clothing, footwear, and fragrances.
Hugo Boss / Holistic 360-degree Metaverse Experience in Partnership with “Imaginary Ones”
The partnership not only marks a step forward in HUGO’s metaverse journey as a digital fashion player. It also marks the launch of the brand’s first NFT collection.
Burberry / Limited Edition NFT Collection and Social Space by Burberry X Blankos
As part of the collaboration, the brand is opening new spaces for its communities by creating a bespoke social space within the game where players can come together and enjoy a unique virtual experience.
Estée Lauder / Metaverse Experience on Decentraland
Estée Lauder transformed Advanced Night Repair into a Metaverse experience and created a wearable NFT inspired by their number one serum.
Yves Saint Laurent Beauty / YSL Beauty x Pools Token Drops and Virtual Makeup NFT Booth
YSL Beauty presented the social tokens drops of two inspiring artists and its first virtual makeup NFT booth to collect unique NFTs.
Until next article!
*Disclosure: This article does not constitute investment advice, nor is it an offer or invitation to purchase any crypto assets. The Content in this article is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.
