Not even the crypto winter has been enough to keep luxury brands away from NFTs.
Kering SA’s Gucci and LVMH’s Tiffany & Co. this week joined the multitude of high-end brands diving into the ecosystem, launching NFT-related projects.
In Gucci’s case, it involves adding another cryptocurrency to the pool of tokens it accepts as payment, while Tiffany will use NFTs as a digital passport to make personalized physical jewelry for crypto fans.
These projects in web3, as the new generation of internet technologies is called, are “the future” and “one step further”, say these companies.
However, for these projects the market conditions do not seem to be the most suitable.
Market demand for NFTs has plummeted in recent monthsand resale value has underperformed along with broader industry turmoil and that has wiped out around $2 trillion of the total value of the crypto sector. Still, industry executives said many large consumer companies continue to see NFT and web3 technologies as a promising way to engage with customers.
“Brands have this opportunity to have a new kind of relationship with their customers,” said Ian Rogers, former chief digital officer at LVMH and now chief experience officer for the company. crypto hardware Ledger. “What you’re going to see in the next few years is a lot of experimentation as people figure that out.”.
Ledger has launched a market for NFTs that expected to become the launch home for leading brands and artists. He also previously collaborated with LVMH’s Fendi, creating Fendi-branded tech accessories designed to accommodate memory-size wallets. USB by Ledger.
The associations work both ways, with price data showing that the backing of big brands can also be beneficial for crypto projects.
“I heard that many brands they are really glad that price gouging has subsided“, said simon taylor, head of strategy and content at crypto fraud prevention firm Sardine. “Brands that were worried about being seen as quick bucks are now less worried. Recent launches show the belief in the usefulness of NFTs to engage your consumers and customers to do new things digitally.”
Gucci will be the first brand to accept apecoin in US stores. and plans to expand that reach into the rest of its North American footprint this summer, the company spokesman said, Claudio Monteverdein an email on Tuesday.
The Italian fashion house had published a job advertisement for a “Web3 Manager” in January, looking for someone with digital asset expertise to help drive sales in digital art and NFTs. Monteverde confirmed that the position has not yet been filled, since “the team is still evaluating some options.”
A permanent team dedicated to the metaverse, a virtual world that includes different technologies, was formed by Gucci more than a year and a half ago, he added. Evolved from the brand’s previous gaming strategy, Monteverde said the dream big unit it could be seen as something similar to “a new company exploring new areas of opportunity” for the business.
Read more at Bloomberg.com
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