Fashion house Balmain is already launching its third project involving non-fungible tokens (NFTs). More and more luxury brands understand the value of NFTs to enrich the customer experience.
Balmain’s third initiative in NFTs
Some brands are moving faster than others. For Balmain, the potential of non-fungible tokens (NFTs) is already a strategic pillar of its business. On December 8, the brand is launching its third NFT project, namely two pairs of virtual sneakers with VIP experiences.
Txampi Diz, Balmain’s Marketing Director, said:
“The most important element of these projects is to really tie the NFT to an experience, in other words, it ties everything digital to a physical experience.”
Both NFTs come with special benefits, depending on the final sale price. They will be auctioned on the OpenSea marketplace, starting at ETH 2.5 or about $10,000.
If the auction price reaches 6 ETH buyers will be able to participate in a personal training session with Kirk Myers, founder and CEO of the celebrity gym Dogpound.
If the bid reaches 10 ETH, buyers will receive 2 tickets to the next Balmain fashion show. Finally, at 14 ETH, holders will be able to go backstage at the fashion show.
Luxury and NFTs, a logical marriage?
NFTs allow luxury brands to amplify and enrich the customer experience, explained Txampi Diz,
According to the investment bank Morgan Stanley, NFTs could constitute 10% of the luxury goods market by 2030, with a revenue opportunity of 50 billion euros. We can read in the report:
“NFTs have three benefits for consumers: the investment aspect, status and community. Many brands focus on the second part, but there are many other things you can leverage and do. Adding VIP benefits to the NFT property over time makes sense.”
Brands other than Balmain have taken the plunge, for example Gucci auctioned an NFT video at Christie’s for $20,000 in May, Burberry produced an in-game NFT for Blankos Block Party in August; and Givenchy launched its second collection of 15 NFTs with artist Chito in late November.