Many brands browsing the metaverse are looking for new revenue streams. Companies like Nike, Adidas or Tiffany’s have already cracked the code of selling non-fungible tokens (NFT) and together they have raised more than 245 million US dollars (about 230 million euros).
During online gaming partnerships, invest in real estate in web 3.0. and the runway’s foray into AR are the most common early forays into the metaverse, with some of the fashion industry leaders turning to NFTs to boost their revenue. This is the case, for example, of Nike, Tiffany’s, Gucci, Dolce & Gabana, Adidas and Lacoste.
A recent NFT branding case study authored by @kingjames23 on blockchain analytics platform Dune examines the transaction count and revenue performance of a dozen top brand NFT projects on the Ethereum blockchain platform; seven of them belong to the fashion industry. This analysis looks at NFT sales volume, royalty value, and total NFT sales amount in US dollars.
Nike: $185 million in NFT sales
Nike ranks first among the first users of the Metaverse. Last December, Nike Inc. announced the acquisition of RTFKT, a leading brand that leverages innovative products to deliver next-generation collectibles that fuse culture and play. RTFKT’s CloneX NFT avatars, launched a month before the announcement of the acquisition. “This acquisition is another step that accelerates Nike’s digital transformation and enables us to serve athletes and creators at the intersection of sport, creativity, play and culture,” said then-President John Donahoe. and CEO of the sporting goods manufacturer.
Nike and RTFXT made their first NFT drops in February. Since April this year, RTFKT has been offering officially licensed virtual Nike sneakers on the NFT Marketplace: the CryptoKicks NFT Collection. These 20,000 pairs of virtual sneakers will sell for between US$1,300 and US$130,000, with some copies designed by artist Takashi Murakami being among the most coveted.
Revenues generated by Nike NFT include CloneX sales and royalties prior to the acquisition of RTFKT. According to data from Dune, by October the sportswear company had completed more than 70,000 transactions, generating $91.2 million in royalties and $93.1 million in additional revenue. Overall, Nike has earned over $184.31 million from its NFT sales to date.
Dolce & Gabbana: NFT auctions for millionaires
Since the first NFT project a year ago, Dolce & Gabbana has raised $23.68 million through NFT sales. It should be noted that in October 2021, Dolce & Gabbana closed nine NFT auctions for a total of 1,885 ETH (worth around $5.7 million at the time). The objects auctioned were 1/1 unique pieces that make up the ‘Collezione Genesi’ collection. Collectors who purchased the pieces received the corresponding bespoke garment within one to two years. The centerpiece was a glass costume personally designed by the founders of D&G. It is made of silk organza and consists of 78 embroidered glass bodies that differ in design, size, shape and color. As the Italian luxury brand announced on Twitter, the ‘Glass Suit’ was sold for 351,384 ETH, or US$1 million.
Tiffany’s: Partnership with CryptoPunk
Earlier this year, Tiffany made headlines by announcing a partnership with blockchain company Chain to launch its first NFT collection, NFTiff. The iconic jewelry house said it is “taking NFTs to the next level. Exclusive to CryptoPunk owners, NFTiff transforms your NFT into a bespoke pendant handcrafted by Tiffany artisans. You also get an additional NFT version of the trailer. According to publicly available data, Tiffany’s NFT sales in October were $12.6 million.
The NFT collection consists of 250 personalized pendants made with materials such as gemstones, enamel and gold, and sold for approximately 30 ETH (approximately $49,000) at the time of announcement in August 2022 The cost of the NFT, custom pendant, chain, and shipping is included in the fee, and the physical pendant that comes with a chain will be redeemable in 2023.
Tiffany’s decision to partner with CryptoPunk – a popular Profile Picture (PFP) NFT collection launched in 2017 consisting of 10,000 uniquely generated numeric characters – has also boosted CryptoPunk’s sales volume. In fact, Tiffany’s has the highest trading volume among the top brands trading NFTs, surpassing brands like Nike and Adidas. These 74,000 transactions generated $6.20 million in NFT sales and an additional $4.76 million in royalties.
Gucci: Limited Edition Supergucci NFT Drop
Gucci’s groundbreaking exploration of the Metaverse began in May 2021 with the presentation of an NFT film inspired by the Aria fashion collection at Christie’s ‘Proof of Sovereignty’ sale, hosted by Lady PheOnix. Shot by Gucci Creative Director Alessandro Michele and acclaimed photographer Floria Sigismondi. The Aria collection was featured in a four-minute music video, which sold for $25,000. Six months later, in the spring of 2022, Gucci begins a collaboration with vinyl toy manufacturer Superplastic. They co-created a 10,000 piece NFT drop called Supergucci and presented it as a three-part limited edition NFT series co-created by Michele and Superplastics digital personalities Janky & Guggimon. Gucci has taken a similar approach to Tiffany’s and Dolce & Gabbana, allowing NFT owners to unlock handcrafted white ceramic sculptures with their digital items. To date, Gucci has earned nearly $11.6 million from the sale of NFT.
Adidas: “Into the Metaverse”
Adidas is another brand that is betting on the Metaverse and is already seeing the benefits of this move. In late 2021, Adidas partnered with Bored Ape Yacht Club to sell 30,000 NFTs for 0.2 ETH each ($22 million at the time). Each of these non-fungible tokens was redeemable for physical hoodies, tracksuits, and hats. “Into the Metaverse” is the name of this joint NFT project between Adidas Originals and NFT pioneers Gmoney, Bored Ape Yacht Club and Punks Comic. Phase 1 of the NFT was the first stage of “Into the Metaverse”. Phase 1 of physical product claims is now complete and the phase 1 token no longer grants the ability to claim physical goods in co-op.
Since then, Adidas’ NFTs have had 52,770 transactions and generated $6.2 million in sales and an additional $4.7 million in royalties.
Lacoste: NFTs give owners a say
The iconic polo brand recently joined the Metaverse fashion community with an NFT drop. In June, Lacoste launched its first NFT collection called “Undw3”, which means “under water”. As announced by the fashion brand, 11,212 digital coins related to the iconic Lacoste L1212 polo shirt will be sold at a starting price of 0.08 ETH (approximately $1,300 at the time of this issue.) “Andw3 demonstrates our commitment to ‘explore the phenomenon of to accompany the decentralization driven by Web3 and shows our ambitions in this area,’ said Catherine Spindler, Chief Brand Officer of Lacoste, in the official announcement. Spindler shared the company’s desire to bring its physical and digital customers closer together. Lacoste has made another promise to its NFT owners: not only will they have access to exclusive physical products, but they will also have a say in future designs. Notably, Lacoste was testing the Metaverse in March, when the Croco Island brand jumped into Minecraft with 30 “skins” (digital outfits) that served as a preview of the Minecraft x Lacoste fashion collection. According to data from Dune, these efforts have already resulted in $1.1 million in NFT sales.
This article originally appeared on FashionUnited.uk. Translated and edited by Simone Preuss.