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NFT hype might have dwindled in 2023, but many brands stuck at it. In a shift that began in 2022, focus turned to long-term utility rather than one-off marketing plays. Those who got in early — like Prada and Nike — found their rhythm, demonstrating what a longer-term Web3 strategy can look like for a fashion brand.
Brands leaned into the consumer focus that NFTs were celebrated for off the bat. Web3-native brands and companies built out infrastructure to encourage consumer engagement and input, and fashion and beauty embraced gamification as motivation. Luxury brands also experimented with NFC chips more than in years past, adding them to leather goods like bags (Tod’s and Mugler) and sneakers (Dior). Balenciaga even embedded one in a hoodie — it granted exclusive access to an unreleased song.
For all the steps forward, momentum was notably slower. Still, a few NFT projects stood out this year, and provided lessons and indicators of some key themes and use cases we can expect from the technology going into 2024.
See below for some of this year’s notable NFT drops and the lessons we learnt from them, as seen in Vogue Business’s weekly NFT Tracker and tech coverage.
Louis Vuitton
In June, Louis Vuitton launched €39,000 phygital “Treasure Trunks”. The NFT release was part of a new project called “Via”, the Latin word for road, which nods to its aim as an elite pathway towards products and experiences that are inaccessible to others. In September, Vuitton launched a Discord; some of the channels are only accessible to Via NFT holders. And in November, it introduced a phygital miniature trunk bag, the Via Tile Trunk by Nicolas Ghesquière, sold as an NFT.
Key takeaway: Exclusivity reigns supreme. Louis Vuitton is paving the way for luxury brands to build out a community around a blockchain-based initiative, by offering physical products exclusively to these members. Web3-native brands and collectives have also embraced this approach. Syky’s drops are limited to its Keystone membership pass holders, and 9dcc limits access to those within the Admit One community.
Honourable mentions: Syky; 9dcc
Gucci
In July, and again in November, Gucci collaborated with Christie’s on a generative AI art project, enabling the brand to experiment with AI in conjunction with their commitment to NFT initiatives. The pieces were auctioned as NFTs. In April, Gucci launched a physical, NFT-inspired pendant alongside a project in game-like, blockchain-based virtual world The Otherside — and gave existing holders the option to cash in their NFTs for wallets or bags.
Key takeaway: Generative AI and gaming don’t have to squash out NFTs — they can overlap. Gucci is one of the brands leading the charge in blending straightforward NFT drops with more playful and explorative initiatives that embrace both AI and gaming. By overlapping these separate fields of tech, brands can reach new audiences and gauge the interest of those they already know hold a level of interest in technology projects. The early stages are all about testing and learning.
Honourable mentions: Balmain and Space Runners; Tommy Hilfiger x DressX; Mmerch; Tribute Brand; Shiseido
Tod’s
On 20 November, Tod’s debuted digital product passports for the brand’s custom Di bags, powered by the LVMH-backed Aura Blockchain Consortium. Product authentication data is stored on a “traceability token”, and customers can claim a second digital twin NFT for proof of ownership.
Key takeaway: Digital product passports are the way forward. One of the main selling points for fashion NFTs is their most obvious use case: NFC-chipped digital product passports. As EU regulations around transparency and traceability are expected to tighten, it’s smart for brands to get in early and integrate these features into products from the point of production. Mugler even mentioned this when announcing its Spiral Curve 01 and 02 bags would come equipped with the chips.
Honourable mentions: Mugler; Breitling; Coach; Tod’s; Vestiaire Collective
Prada
Each month, Prada releases a new NFT tied to its Timecapsule collection, alongside the product drop of the month. The gifted NFT grants access to the Prada Crypted NFT Discord community, where information about future Timecapsule drops is posted. Notably, this year, Prada halted the releases to announce these drops, but the initiative didn’t pause. Instead, shoppers are encouraged to look to Prada’s Discord.
Key takeaway: Consistency is critical. Prada has linked NFTs to its physical monthly drops since June 2022, and has stuck with this strategy since. And as of February 2023, customers who bought Timecapsule pieces before they were attached to NFTs were also eligible to purchase an NFT. Prada’s continued commitment to its Prada Crypted hints at the longevity of the strategy, and offers a blueprint for brands wanting to develop consistent, reliable Web3 plans.
Honourable mentions: Alo; Balmain and Space Runners; Draup; Nike
Balenciaga
In November, Balenciaga released NFC-chipped tees and hoodies with the help of digital identity company Eon that provides access to a new song and playlist from trip-hop group Archive — a favourite of Demna’s. Because the link is encrypted, the only way to listen is by scanning the hoodie. The T-shirts and hoodies come in black or white and include both Archive and Balenciaga branding with a list of the band’s albums on the back. They start at $750 (for tees) and reach $1,250 (for hoodies) and were available from 20 November as a limited-edition drop.
Key takeaway: The music use case is one to watch. Music merch got the tech treatment in 2023, as artists explored ways to use NFC chips to establish connections with fans. Brands and artists have begun to explore ways of fostering cross-industry collaboration while boosting loyalty, with the help of blockchain tech. In a similar vein to Balenciaga, Mntge and Grimes granted access to unreleased Grimes music via NFC-chipped fashion. Avenged Sevenfold, on the other hand, dropped NFC-chipped concert merch — fans who scanned gained access to a loyalty community.
Honourable mentions: Mntge and Grimes; Diesel; Avenged Sevenfold
Lacoste
In June, Lacoste launched a Undw3 card NFT that rewards consumer engagement. Holders connect their digital wallets to a token-gated website where they can access various experiences and earn rewards. They can also enter locked Discord channels and attend events where they can participate in discussions with the brand, creative studio and sports ambassadors to provide insights and feedback, as well as co-create Lacoste products.
Key takeaway: Community input is valuable. Lacoste’s dedicated site offers a gamified, rewards-based means of community engagement, encouraging consumers to vocalise what they want to see from the brand. It’s smart business: reward engagement; give the people what they want; sell more. Brands on all ends of the spectrum are toying with this approach. Web3-native beauty brand Kiki is doing so from the get-go, inviting consumers to shape the brand and product from the ground up. And Try Your Best offers a gateway to Web3 community-building by inviting existing brands onto its blockchain-based platform, where they can reward consumers for engagement.
Honourable mentions: Kiki; Rare Beauty; Try Your Best
Nike
In December, Rtfkt and Nike dropped a physical, NFC-tagged Dunk Genesis version of a digital wearable collectible that people claim by scanning the tag. In October, Nike released its physical edition of a .Swoosh product. These were two of many Nike-led NFT drops, all of which revolved around sneakers. To date, Nike’s Web3 efforts have centred around both its acquisition of Web3 sneaker brand Rtfkt and the ‘Dot Swoosh’ platform that houses its Web3 projects.
Key takeaway: Sneakers remain Web3’s favourite product. Nike isn’t the only company to zero in on sneakers as the physical counterpart to its NFTs. Sol3mates, Chalhoub Group’s first Web3-native brand, launched with sneakers. Luxury brands from Dior to Balmain also select sneakers as their NFC-chipped products of choice. Targeting sneakerheads appeared a successful strategy in the early days of Rtfkt, so it’s no wonder brands are running with it.
Honourable mentions: Sol3mates; Adidas x Moncler; Balmain x Space Runners; Endstate; Puma; Dior
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