Luxury brands are getting involved in cryptocurrencies. How?
In May, world-renowned brand Gucci will begin accepting cryptocurrencies as a means of payment in some of its shops in the US. In time, the crypto program will expand to many other retail outlets in North America. That said, Gucci is not the only brand that has started to take an active interest in crypto innovation recently. Louis Vuitton and Johnnie Walker will also soon be on the list of cryptocurrency fans. We tell you more about what’s going on.
Note that NFTs and meta universes – that is, virtual spaces for user interaction – are indeed attracting the attention of major brands. In particular, according to analysts at DappRadar, unique non-interchangeable tokens are now a major trend within the crypto industry. In doing so, they have replaced the field of decentralised finance, or DeFi, whose real boom occurred in mid-2020. Read more about the experts’ research in a separate article.
Who accepts cryptocurrencies
Payments in Gucci shops will be made using a QR code, which customers can scan with their cryptocurrency wallet sent by Gucci via email. The shops will accept a variety of digital currencies including Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Dogecoin and Shiba Inu.
The choice of coins is quite large, which means investors will be able to find a suitable means of payment - especially if they hold a concentrated stock in a certain position. Most of the time, however, it is not at all important for such shops to interact with coins. Typically, they work through BitPay-type pad services, which process payments and convert digital assets into fiat.
Gucci
The first shops to accept cryptocurrency will be Wooster Street in New York, Rodeo Drive in Los Angeles, Phipps Plaza in Atlanta and The Shops at Crystals in Las Vegas. According to Decrypt’s sources, the integration of cryptopayments is one of the brand’s recent moves towards embracing crypto projects. Earlier this year, Gucci entered the meta-universe by buying virtual land in decentralised blockchain game The Sandbox for an undisclosed sum.
It should be noted that many brands are indeed interested in space in virtual worlds, as this way they, among other things, receive additional advertising. In February 2022, for example, JP Morgan took such a gamble by purchasing space in the blockchain project Decentraland. As a result, they became the first bank with its own branch in the Metaworld.
However, Gucci is just one of the big names in the fashion and apparel world that now appears in the cryptosphere. Joining Gucci in this strategy are clothing lines Dolce & Gabbana, Adidas, Nike, Vans and Balenciaga. More recently, Louis Vuitton has joined the list by releasing its own NFT game called Louis The Game.
In total, the game has already received over 2 million downloads on Android and iOS devices. Louis The Game tells the story of the protagonist Vivienne as she overcomes challenges and acquires candles and other collectibles.
Screenshot from Louis The Game
Another new player in the cryptosphere is Scotch whisky brand Johnnie Walker, which has partnered with Project VeeFriends to release the NFT Gift Goat VeeFriends. It’s a series of unique tokens that consists of 555 pieces. All Gift Goat tokens unlock 18 luxury gift sets for their holders, curated by renowned investor Gary Vaynerchuk. In addition, each set combines an individual physical gift with NFT from renowned artists within the cryptosphere.
We think this kind of interest in the field of blockchain and cryptocurrencies from global brands is quite predictable. Still, they are first and foremost looking for new customers, trying to improve their own reputation and in addition provide existing users with as many options as possible. In this case, the connection with crypto does all of the above - especially in the case of the option to pay for Gucci products in shops. In addition, experienced cryptocurrency investors often hold significant amounts of coins, so they will also be interested in such an offer.
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