Oct 13, 2022
Nike just did a slam dunk in the metaverse
Huge brands are making money after embracing NFTs barely a few months ago.
Remember a while back, there was a time when it seemed like every major luxury brand and big player were diving head on into the NFT world?
Well, guess what?
They were right to make that bet, however outlandish is may have sounded.
Nike, Dolce & Gabbana, Tiffany, Gucci, Adidas, Budweiser, Time Magazine, LAcoste, McLaren and Pepsi all took the leap into creating their own NFT collections.
Now, they are all swimming in the royalties created when users trade their NFTs.
On top of the actual money they made when users first mint the NFTs, they also get a cut for every subsequent transactions made there after.
Nike is at the top of the leaderboard, for now.
“As of August, Nike remains the most successful fashion brand to issue NFTs. The company has amassed a cumulative trading volume of $1.25 billion and cumulative royalties of $87 million across all NFT collections.”
Ok that is nothing compared to what the Jordan brand made for Nike in 2021, $5B.
But its a good first step into the NFT world.
“Nike’s most successful NFT collection is Clone X, which was launched by RTFKT (pronounced ‘artifact’) in Nov-2021 with a 5% royalty on secondary sales. Two weeks later, RTFKT was acquired by Nike.”
“Since then, RTFKT has continued to release multiple NFT collections. Currently, 86% of the cumulative royalties earned by Nike come from just 3 collections — Clone X, Clone X Mintvial and MNLTH. These 3 collections make up $1.17 billion of Nike’s $1.25 billion in cumulative trading volume.”
Who would have thought transitioning from selling sneakers in real life to selling digital shoes in the metaverse would be so lucrative?
The secret sauce?
Legacy.
This isn’t some unknown small-time brand coming up from the Bronx.
This is Nike, well-known, established, with a strong brand equity and a global fanbase.
When they launch their NFTs, they rode the bull market and got a ticket on the hype train chugging through the entire crypto market.
They knew they could transfer most of their artwork and sneaker designs online, since they were designed digitally anyways these days.
In fact, it allowed them to try new things that they otherwise couldn’t have in real life, on physical products.
From the Jordans to the Air Max, Nike has dominated sneaker culture for decades.
Transporting all that goodwill and branding into the metaverse will proffer immense opportunities for the future.
Nike sure knows how to capitalise on their brand equity and take the front seat in the new web3 revolution.
Sure, legacy ain’t something anyone of us can have in our backpack and Nike took decades to build it.
But it is also worth noting how large corporations like Nike and old brands like Gucci are unafraid to try new things.
For such a big organisation to move so quickly and ride the wave so effectively, its commendable.
Imagine the red tape and paperwork needed to pass management.
The amount of resources, new hires and surprises needed to conjure an NFT department.
They would need an entire army of programmers and hustlers who are savvy with web3 and NFT tech.
Not to mention the community building aspect on discord and social media.
They made a bet, took a leap of faith and now they are smiling.
Like what Matt Damon said “Fortune rewards the bold!”
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Would you buy a pair of Nikes in the Metaverse?
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