Why are Luxury Brands Remaining Bullish on NFTs?

What makes a luxury brand stand out? Simplicity is usually a key to success

Many of the world’s top luxury brands have long been careful about their marketing strategy. Companies in the top tier have been more reluctant than others to immediately jump on tech-related trends like social media to prevent any dilution of brand value. 

So why are many of the world’s top luxury houses now forging ahead with NFTs, even as countless within the crypto world remain bearish? While some have called 2022 the end of the NFT “golden age” due to sharp declines in resale profit – luxury brands have seemingly missed the memo. 

NFTs Find A Home In High Fashion

This year, Salvatore Ferragamo opened a New York-based concept store to host the installation of a booth for the brand’s custom sneaker NFT hologram program. 

Gucci teamed up with Superplastic to launch a 10,000-piece NFT collection in January called ‘SUPERGUCCI.’ Just two months later, the fashion house released its 10KTF: Gucci Grail Mint Pass collection. Each Pass can be burned for a personalized NFT built by digital creator Wagmi-san. 

The marriage of high fashion and NFTs has not gone without notice. Many speculate the exclusive, one-of-a-kind nature of NFTs meshes well with luxury brands that work hard to carefully craft a specific image. 

Others believe the vast potential of NFTs as a tool to engender brand loyalty is a useful fit for high-end brands who are looking to leverage already-loyal customer bases primarily interested in innovation and creativity.

Other iconic companies that are following in the footsteps of some of the globe’s most well-known fashion and style entities include the largest coffeehouse chain in the world. September 2022 brought an announcement from Starbucks about its new NFT-based “Odyssey” loyalty program. Starbucks states the new Web3-enabled experience launching later this year will offer Starbucks Rewards members the ability to earn and buy digital collectibles (NFTs) and unlock access to new benefits. 

Celebrities Jump On NFTs As The Web3 World Grows In Popularity 

Celebrity interest in NFTs has also been a boon for fashion brands and influential companies interested in diving into the Web3 world. Icons like Justin Bieber, Shawn Mendes, and Lindsay Lohan have all embraced NFT technology and have touted unique digital assets as part of their business-related endeavors. 

For luxury brands harnessing NFT technology and crafting innovative concepts, celebrity endorsements are often a strong sign that a particular endeavor has immense potential. 

NBA player Udonis Haslem recently signaled his support for luxury artist Johnathan Schultz’s GemSet NFT project

Earlier this year, Haslem joined other VIP guests in Miami’s Design District to celebrate the grand opening of Schultz’s first major art gallery focused on his vision of charting the future of artwork. 

Schultz, a renowned artist known for his groundbreaking luxury works featuring diamonds, precious metals, and gemstones is now hard at work on the unique GemSeT NFT project, an “ethereal being who represents all of our authentic selves.” Each hand-drawn NFT opens up access to exclusive GemStudio projects, staking pools, and other prizes. 

Learn more about luxe artist Johnathan Schultz and the unique GemSet NFT project by visiting the collection’s website. Those interested can also follow the official project on Twitter and Instagram for more details and updates.

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