The luxury fashion brand Louis Vuitton is putting PFP-inspired NFT awards into its standalone mobile app game Louis: The Game, as part of its ongoing experimentation with non-fungible tokens (NFTs).
The game first aired in August of 2021. Players join an environment where they may design their Vivienne, a brand-inspired avatar, and collect postcards describing the company’s 200-year history. The software has been upgraded with new goals and NFT rewards, according to Vogue Business.
Players who acquire a particular amount of free NFTs throughout the game will be entered into an NFT raffle, which will run until August 4 (Louis Vuitton’s birthday, as mentioned on one of the game’s postcards). One of ten new NFTs featuring Vivienne in a variety of styles is up for grabs. Similar to a PFP, these NFTs will be transferable across several platforms.
The NFTs were designed in collaboration with Beeple’s firm Wenew Labs, which also worked with sister company Possible, and were minted using Louis Vuitton’s Ethereum wallet.
The great possibility
Luxury and fashion brands are increasingly experimenting with NFTs and blockchain games in order to win Gen Z buyers, who have an estimated spending power of $143 billion.
For the first-ever metaverse fashion week, hundreds of businesses – from luxury labels like Dolce & Gabbana to fast fashion outlets like Forever 21 – took over Decentraland’s virtual streets and runways last month. The metaverse, often known as the next phase of the internet, has an estimated $800 billion in economic potential, according to Bloomberg Intelligence.
Digital fashion is swiftly becoming one of the most promising growth opportunities in the fashion industry, according to industry insiders.
In an interview with The Block, Charles Hambro, CEO and co-founder of Geeiq, said, “When we look at virtual worlds, what we’re actually looking at is the future of social networking.” Geeiq helps companies find and improve metaverse and gaming cooperation.
Many fashion brands approach Geeiq, according to Hambro, with the objective of really interacting with consumers and meeting them where they are. Other companies look for ways to avoid falling behind in what some of the world’s most prominent luxury brands are currently doing.
Despite the buzz around the nebulously defined “metaverse,” Piper Sandler’s research shows that just about half of the 7,100 young people interviewed in the United States are interested in the concept. According to statistics obtained by The Block from market research firm Piper Sandler, although 26 percent of teens own a VR headgear, just 5 percent use it on a daily basis.
Despite this, experiments have shown positive results. According to the company, more than 2 million people have downloaded Louis: The Game, which is free and requires no additional equipment. According to Nike President and CEO John Donahoe during the company’s March 2022 earnings call, roughly 7 million people had visited Nike’s Roblox store.
According to Robert Triefus, Executive Vice President and Chief Marketing Officer of Gucci, who spoke with McKinsey, Gucci, an early user of NFT fashion, had 19 million visitors on Roblox.
After years of supply chain interruptions and consumer buying fluctuations after the start of the COVID-19 pandemic, the research of virtual places and things seems to be a beneficial development for the fashion industry.
However, it is unclear how fashion can profit from this location. Even some of the industry’s biggest names and participants are frightened of what may happen.
At a January earnings conference, Bernard Arnault, the CEO of Louis Vuitton’s parent company LVMH, expressed worry about a potential metaverse “bubble,” invoking the dot-com bubble burst of the early 2000s.
On Kernig’s February earnings call, François Pinault, the company’s founder, expressed optimism, saying that the metaverse had “disruptive” potential. Pinault highlighted the potential for NFTs to be used to validate actual objects, as well as smart contracts being used to monitor secondary transactions (a current pain point for the industry.)
Gucci, which Kernig owns, has put a strong emphasis on this sector, with a dedicated team dedicated to virtual reality.
“When it comes to NFTs, it’s going to require a lot more time to understand what they represent in terms of customer experience or value-add,” Gucci’s Triefus told McKinsey about NFTs. “But you’ve seen a significant number of brands within the sector saying, okay, we believe that NFTs have relevance, we’re not 100 percent sure yet what that relevance is but we’re going to pilot [this], we’re going to experiment and have some learnings and insights as a result.”
The metaverse, according to Gucci, is more than just a pleasant short-term marketing opportunity. In the future, he sees it as a “very major” source of income development.