Louis Vuitton’s Treasure Trunk: A Phygital NFT for the Elite
How the French luxury house is creating a new value proposition for web3 enthusiasts with its phygital NFT that combines luxury, exclusivity, and access.
Imagine owning a piece of history that is not only a symbol of luxury and craftsmanship but also a gateway to a world of exclusive experiences and products. A piece that is both physical and digital, tangible and intangible, real and virtual. A piece that is yours and yours alone, forever.
That is the promise of Louis Vuitton’s Treasure Trunk, a new and unique NFT offering that will launch on June 8. The Treasure Trunk is a phygital NFT that combines the iconic design of Louis Vuitton’s travel trunk with the cutting-edge technology of blockchain and NFTs. It is a phygital NFT that grants its holders access to Louis Vuitton’s design house, Maison, where they can see never-seen-before designs and creations. It is a phygital NFT that acts as an access pass to future products and experiences that are inaccessible to others.
Louis Vuitton is no stranger to innovation and creativity. The French luxury house has been at the forefront of fashion and culture since its founding in 1854 by Louis Vuitton, a visionary trunk-maker who revolutionized travel luggage with his flat-topped trunks. Since then, Louis Vuitton has expanded its product range to include leather goods, ready-to-wear, shoes, accessories, watches, jewellery, fragrances, and more. It has also collaborated with artists, designers, celebrities, and influencers to create stunning collections and campaigns.
Louis Vuitton has also embraced technology and digitalization as a way to enhance its brand image and customer experience. It has launched apps, games, podcasts, virtual reality shows, and digital art exhibitions. It has also participated in the Aura blockchain project, a consortium of luxury brands that aims to provide traceability and authenticity for their products using blockchain technology.
Now, Louis Vuitton is entering the NFT space with its Treasure Trunk, a phygital NFT that combines luxury, exclusivity, and access to create a new value proposition for web3 enthusiasts. In this article, we will explore what makes the Treasure Trunk a unique and innovative NFT offering, how it fits into the phygital trend in NFTs, and what it means for the future of luxury and web3.
Phygital: The New Trend in NFTs
NFTs are non-fungible tokens that are unique and verifiable on a blockchain. They can represent anything from art, music, and games, to virtual properties in the metaverse. Unlike fungible tokens like cryptocurrencies which are interchangeable and divisible, NFTs are indivisible and irreplaceable. They have their own identity and history that cannot be duplicated or tampered with.
NFTs have exploded in popularity and value in the past year, as more people have discovered their potential as digital collectibles and assets. According to DappRadar, the total sales volume of NFTs reached $2.5 billion in the first half of 2021, up from $13.7 million in the first half of 2020. Some of the most notable NFT sales include Beeple’s every day: The First 5000 Days for $69 million, CryptoPunks for over $16 million, Jack Dorsey’s first tweet for $2.9 million, and NBA Top Shot moments for millions of dollars.
However, NFTs are not just digital artefacts that exist on a screen or a wallet. They can also have physical counterparts or connections that enhance their value and utility. This is where the concept of phygital comes in. Phygital is a term that describes the merging of the physical and digital worlds through technology. It is a trend that has been observed in various industries such as retail, entertainment, education, and healthcare.
In the context of NFTs, phygital refers to NFTs that have physical manifestations or implications. For example,
• Physical-backed NFTs: These are NFTs that are backed by physical items or assets that are stored or delivered to the buyers. For instance,
• Nike patented CryptoKicks, a system that allows customers to buy physical sneakers that come with digital tokens that represent them on the blockchain.
• Gucci sold a pair of virtual sneakers for $12 that can be worn in augmented reality apps or online games, but also came with a physical shoebox and a bag.
• Dolce & Gabbana auctioned off nine NFTs that were inspired by their Alta Moda, Alta Sartoria, and Alta Gioielleria collections, and also included physical couture items and jewelry.
• Physical-redeemable NFTs: These are NFTs that can be redeemed for physical items or experiences that are not necessarily related to the NFT itself. For example,
• Kings of Leon released their album When You See Yourself as an NFT that also gave access to limited edition pieces of vinyl, front-row tickets, and backstage passes.
• TIME magazine sold 4,676 NFTs that represented its covers from 1923 to 2021, and also offered a three-year subscription to its print and digital editions.
• Bored Ape Yacht Club, a collection of 10,000 NFTs featuring cartoon apes, hosted a real-life party for its members in New York City.
• Physical-enhanced NFTs: These are NFTs that enhance the value or utility of physical items or experiences by adding digital features or benefits. For example,
• VeChain, a blockchain platform for supply chain management, partnered with several luxury brands such as Givenchy, Alexander McQueen, and Prada to create NFTs that verify the authenticity and provenance of their products.
• LVMH launched the LV Diamonds collection, which uses the Aura blockchain to provide traceability and transparency for its diamond jewellery, as well as digital certificates and services for its customers.
• Burberry collaborated with Mythical Games to create a limited edition NFT hoodie that can be worn in the Blankos Block Party game, as well as a physical version that can be purchased on its website.
Phygital NFTs are appealing to both consumers and brands for several reasons. For consumers, phygital NFTs offer:
• A sense of ownership and identity: Phygital NFTs allow consumers to own something unique and personal, both in the physical and digital realms. They can also use their NFTs to express their identity and preferences in various platforms and communities.
• A sense of value and scarcity: Phygital NFTs have inherent value and scarcity due to their non-fungibility and limited supply. They can also appreciate over time due to their rarity and demand.
• A sense of utility and access: Phygital NFTs provide utility and access to physical items or experiences that are otherwise unavailable or inaccessible. They can also unlock new features or benefits in the digital world.
For brands, phygital NFTs offer:
• A way to innovate and differentiate: Phygital NFTs allow brands to innovate and differentiate themselves from their competitors by creating new products and experiences that leverage the power of blockchain and NFTs.
• A way to engage and reward: Phygital NFTs allow brands to engage and reward their customers by offering them exclusive access and perks that enhance their loyalty and satisfaction.
• A way to monetize and grow: Phygital NFTs allow brands to monetize and grow their business by tapping into new revenue streams and markets that are driven by web3 enthusiasts.
However, phygital NFTs also pose some challenges for both consumers and brands. Some of these challenges include:
• Technical complexity and interoperability: Phygital NFTs require a high level of technical expertise and infrastructure to create, store, transfer, and redeem. They also face issues of interoperability across different blockchains, platforms, and devices.
• Legal uncertainty and regulation: Phygital NFTs raise legal questions regarding ownership, rights, liabilities, taxation, and compliance. They also face regulatory hurdles in different jurisdictions that may have different rules and standards for NFTs.
• Environmental impact and sustainability: Phygital NFTs consume a lot of energy and resources due to the computational power required for blockchain transactions. They also generate waste and emissions due to the production and delivery of physical items.
Louis Vuitton’s Treasure Trunk: A Phygital NFT for the Elite
Louis Vuitton’s Treasure Trunk is a phygital NFT that belongs to the category of physical-backed NFTs. It is an NFT that is backed by a physical item that is delivered to the buyer. However, unlike other physical-backed NFTs that simply replicate or represent an existing physical item, the Treasure Trunk is a unique creation that combines the iconic design of Louis Vuitton’s travel trunk with the cutting-edge technology of blockchain and NFTs.
The Treasure Trunk is designed for those who seek to travel through new dreams and new realities. It is a permanent and non-transferable NFT holder. It is a phygital NFT that reflects the brand’s heritage and vision of travel and exploration.
The Treasure Trunk is inspired by the original travel trunk that Louis Vuitton created in 1858, which revolutionized travel luggage with its flat-topped design that allowed for easy stacking and storage. The Treasure Trunk NFT features a similar design but with a futuristic twist. It has a sleek black exterior with a metallic LV monogram and a holographic lock. It also has a digital screen that displays various animations and information.
The Treasure Trunk NFT comes with a physical trunk that will be delivered to the buyer’s address. The physical trunk is made of high-quality materials and craftsmanship and has a unique serial number that matches the NFT. The physical trunk also contains a surprise gift from Louis Vuitton, which could be anything from a scarf, a wallet, perfume, or even a piece of jewellery.
However, the Treasure Trunk NFT is more than just a physical item. It is also an access pass to Louis Vuitton’s design house, Maison, where the NFT holders can see never-seen-before designs and creations by the brand’s creative director, Virgil Abloh. The NFT holders can also interact with other NFT holders and form a community of like-minded travellers and explorers.
Moreover, the Treasure Trunk NFT will unlock future products and experiences that are inaccessible to others. For example, the NFT holders will be able to access exclusive collections, events, shows, and collaborations that Louis Vuitton will launch in the future. They will also be able to customize their NFTs with different skins and animations that will reflect their style and preferences.
The Treasure Trunk NFT is priced at €39,000 (roughly Rs. 34 lakhs), which makes it one of the most expensive NFTs ever sold by a luxury brand. Only several hundred trunks will be made available, which adds to their rarity and exclusivity. To acquire one of the trunks, customers (based in the US, Canada, France, UK, Germany, Japan and Australia) can register via a waiting list on a dedicated website on June 8, where they will be invited to connect their crypto wallets (which enables LV to view their holders) and fill out personal details (such as wallet ID, name and country). Louis Vuitton will then invite select people from the waitlist to visit an exclusive preview page for this NFT on June 14.
The Treasure Trunk NFT is different from Louis Vuitton’s previous NFT offering, Louis the Game, which was a free-to-play experience introduced in August 2021 to educate players on Louis Vuitton’s history and reward successful players with the opportunity to win one of 30 free digital postcards featuring Vivienne, the brand’s mascot. The Treasure Trunk NFT is more exclusive and premium than Louis the Game and targets a different audience of web3 enthusiasts who are willing to pay a high price for a phygital NFT that combines luxury, exclusivity, and access.
Conclusion
Louis Vuitton’s Treasure Trunk is a phygital NFT that belongs to the new trend of NFTs that have physical counterparts or connections that enhance their value and utility. It is a phygital NFT that combines the iconic design of Louis Vuitton’s travel trunk with the cutting-edge technology of blockchain and NFTs. It is a phygital NFT that grants its holders access to Louis Vuitton’s design house, Maison, and future products and experiences that are inaccessible to others.
Louis Vuitton’s Treasure Trunk is a phygital NFT that combines luxury, exclusivity, and access to create a new value proposition for web3 enthusiasts. It is a phygital NFT that reflects the brand’s heritage and vision of travel and exploration. It is a phygital NFT that appeals to those who seek to travel through new dreams and new realities.
If you are interested in buying or learning more about the Treasure Trunk NFT, you can register on the waiting list on June 8 and hope to get an invitation from Louis Vuitton on June 14. However, be prepared to pay a hefty price of €39,000 (roughly Rs. 34 lakh) for this phygital NFT, and remember that it is permanent and non-transferable. If you are lucky enough to get one, you will be part of an elite club of phygital travellers and explorers who own a piece of history and a gateway to the future.
Thank you for reading this article. I hope you enjoyed it and learned something new. If you have any questions or feedback, please feel free to leave a comment below. Happy travelling!😊
References
1: Louis Vuitton Jumps on Web3 Wagon, Set to Launch Signature Travel Trunk as NFT
2: Louis Vuitton to Sell $41,000 NFTs to Top Customers
3: Louis Vuitton Launches A New PFP Avatar NFT Collection
