With the rise of non-fungible tokens (NFTs), a new fascinating market has recently emerged. NFT is a unique token on a blockchain that can come in many forms, such as art, music, and game items. However, for the general public, NFTs refer to the profile pictures (PFP) such as Bored Ape Yacht Club and CryptoPunks, where the NFT represents the ownership over a specific identity and art in web3 communities. However, you may not know a fun fact: For most NFTs, the owners don’t simply own the art but its underlying IP. Intellectual Property (IP) owners can commercialize the underlying art and rent it out at their will. Similar to how celebrities influence consumers’ opinions, these prestigious avatars have become significant identities in the web3 community.
In an effort to reach a younger audience, brands have been rushing to expand their presence in the digital world — “Metaverse” during the past year. Thanks to the open IP rights framework, brands can now experiment with how they wish to create their digital experience. Instead of building their virtual identity from scratch, major brands are looking to collaborate with bluechip PFP NFTs such as Bored Ape Yacht Club and CryptoPunks as their on-ramp into the next trendiest market.
In April 2022, Tiffany & Co.’s Vice President Alexandre Arnault polled his Twitter followers on whether Tiffany should custom-make CryptoPunk pendants. Following the favorable vote, in August 2022, Tiffany & Co. broke the ground with their 250 limited edition NFTs, which allows CryptoPunks owners to redeem the right to buy a customized Tiffany pendant, a necklace, and a digital rendering of the pendant as an NFT. The retail cost was around $50,000 at launch and sold for as high as $125,000 on the secondary market. This web3 community-focused marketing strategy turned out to be a wild success, as the collection sold out instantaneously, generating $12.5 million worth of sales in just 22 minutes! Not only did Tiffany and Co. garner attention and discussion among enthusiasts across media platforms, but the jewelry company also succeeded in converting one of the most prestigious web3 communities into future Tiffany customers.
Earlier this month, Vivienne Tam — a famous New York-based Chinese designer, brought to her NYFW runway a collection featuring embroidered well-known PFP NFTs, including BAYC, CryptoPunks, and CyberKongz. With this Spring/Summer 2023 walk, Vivienne Tam brings crypto art into the spotlight, showing the traditional fashion houses that the sky is the limit when it comes to creating unique pieces with web3. Shortly after the show, an upcoming NFT drop will be released, allowing holders to redeem physical fashion pieces from the fashion house. This bold, experimental move from a widely-known fashion house brings together the world of art and NFTs. Similar to how streetwear gained ground in high fashion a few years back, digital arts will connect brands with young new consumers and fuel the next wave of experimental fashion trends.
On the other side of the globe, Li-Ning — one of China’s fastest-growing sportswear brands, also took their first initiative to enter web3 with a merchandise collaboration with Bored Ape #4102. Along with a clothing collection consisting of Bored Ape #4102 x Li-Ning pieces, the brand creatively assigned Bored Ape #4102 to become their pop-up store manager. With this move, Li-Ning has further strengthened its position as a pioneer — becoming the first major Chinese brand to collaborate with a Bored Ape. The partnership is more than simply a trend-catching marketing ploy. It also fits with Li-Ning’s recent international expansion strategy, combining sportswear, fashion, and lifestyle to target young consumers. Through their partnership with Bored Ape #4102, Li-Ning can make its products more appealing to Gen Z consumers and web3 fanatics.
Targeting subculture groups through collaborations with NFT is a new development that brands leverage to integrate themselves into the rapidly expanding digital economy. Similar to the fashion collaboration boom in the past years, NFT x Brands will encompass more than just a fusion of fashion, art, and technology. There will also be the elements of uniqueness, creative philosophies, and experimentation to be explored.
Even if IP licensing is currently one of the main factors influencing brand collaborations, NFT has laid the groundwork for practically limitless possibilities. The following article will explore how other major brands are integrating web3 into their core business models.
About YoloYolo
YoloYolo is building a bridge between the fashion & lifestyle industry and the web3 world by matching the top up-and-coming IPs with leading brands and creators. YoloYolo will unlock new collaborations, growth opportunities, and revenue streams for both NFT holders and brands.
YoloYolo — Web3 Fashion and Lifestyle Platform.
