Given the overwhelming number of brands in existence, it can be challenging for brands to stand out from the crowd, let alone enhance their positioning and cultivate customer loyalty. However, the recent proliferation in NFT x Brand collaborations has opened up a wealth of possibilities for brands to leverage and enter the web3 space to provide their customers with an engaging experience. In the previous article, we have seen brands integrating NFT Intellectual Property (IP) to bridge the digital and the physical worlds with their NFT-featured merchandise. In this article, we will highlight more use cases on how brands are creatively exploring web3.
Last December, Nike acquired RTFKT, a digital sneaker designer, in an effort to establish its foundation to enter the metaverse. RTFKT, which is pronounced “artifact,” was established in 2020 to merge gaming and fashion with “cybersneakers” and electronic artifacts. In less than 2 years, RTFKT raised $9.5 million, including an $8 million seed round from industry-leading investors like Andreessen Horowitz, Galaxy Digital, Ledger, Larry Warsh, etc. Later, in partnership with internationally renowned Japanese contemporary artist Takashi Murakami, RTFKT unveiled its first 20,000 3D NFT avatar project called CloneX. On the day Nike made its acquisition announcement on CloneX, the project brought in $17.5 million, according to CryptoSlam. As CloneX quickly gained popularity, Nike benefited greatly by associating itself with one of the most affluent web3 communities.
The acquisition turned out to be a golden goose for Nike, as the Nike x RTFKT ecosystem became a tremendous success among the web3 community. According to the latest figures from the analytical platform Dune, Nike tops the list of major brands participating in web3, with close to $200 million in total sales generated from NFTs. The Nike Dunk Genesis Cryptokicks, a collection of 20,000 NFT shoes, which was airdropped to Clone X holders in April 2022 by RTFKT and Nike, went on secondary for $7,500 to $9,000 each. Following the release of the NFT sneakers, Nike broke the market with even more metaverse-style apparel, such as a selection of hoodies (AR Hoodie Genesis) and shoes (Murakami x RTFKT x Nike Air Force 1). The fascinating thing about NFTs is that it enables creators to receive a share of secondary sales, allowing companies like Nike to benefit directly from the secondary market. This is different from Nike’s traditional model in the sense that as soon as its products leave the store, Nike cannot capture profit from subsequent sales.
Around roughly the same time as Nike, its biggest sportswear rival Adidas also revealed its plan to enter the metaverse race with its first NFT collection. Adidas has acquired Bored Ape Yacht Club #8774 and formed solid alliances with industry-renowned Bored Ape Yacht Club, Punks Comic, and gmoney ahead of the debut. Owners of Adidas NFTs will have access to “digital and physical” merchandise (including a tracksuit, a hoodie, and a beanie) and immersive experiences. With this move, Adidas joined the first batch of real-world companies to embrace the metaverse, a more community-focused customer engagement strategy, and to pave the way for countless future creative possibilities. Through its NFT release, Adidas has generated a whopping $10 million in revenue.
Luxury fashion is also experimenting in this area, and one notable example is SUPERGUCCI, a recent partnership between the maker of vinyl toys SUPERPLASTIC and the Kering-owned brand Gucci. The collection consists of both digital and physical collectibles, allowing NFT owners to redeem handmade Italian ceramic sculptures featuring Gucci iconography. As SUPPERGUCCI goes live, Gucci also released a vintage Gucci drop, hand-picked by the fashion house’s creative director Alessandro Michele. Through this partnership, Gucci and SUPERPLASTIC gain cross-exposure to each other’s customer base — this strengthens Gucci’s reputation as a forward-thinking trendsetter and will ultimately contribute to Gucci’s $11.5 million total NFT revenue.
Whether we like it or not, NFTs have already captured a huge amount of interest among big brands and are playing a crucial role in brands’ marketing strategies. NFTs are significant because they can help to build continual connections with customers while generating ongoing potential revenue for brands and creators. With NFTs, brands have countless ways to be creative with how they want to build their digital experience. In the next article, we will explore how blue-chip NFTs such as Bored Ape Yacht Clubs have become web3 superstars and dive deep into what this all means for the entertainment industry and brands moving forward.
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.
