Apparel and luxury brands are among the companies demonstrating the greatest interest in tapping into web3 (and connecting with consumers in the space) by way of non-fungible tokens (“NFTs”). Based on newly-compiled data on “traditional” brands – i.e., those whose core businesses fall outside of the web3 realm – that have launched tradable NFT collections since 2020 (either independently or with a partner), crypto market analysis site CoinGecko found that 37 percent fall within the Apparel and Luxury Goods industry, followed by Media companies, those in the Beverages space, “Food & Staples Retailing” companies, Entertainment entities, and Automakers like Mercedes, McLaren, and Audi.
Looking at the “Apparel and Luxury Goods” brands category specifically, CoinGecko puts adidas at the top of the ranking of brands by trading volume, with its Adidas Originals into the Metaverse NFT collection – a four-way collaboration with Bored Ape Yacht Club, Punks Comic, and Gmoney – boasting a total volume of 47,000 ETH since its launch in December 2021. According to CoinGecko’s data, the German sportswear giant is followed by Nike (seemingly excluding at pre-acquisition RTFKT volume), Dolce & Gabbana, and Gucci. Still yet, CoinGecko states that Puma’s Nitro Token and Nitropass, and Tiffany & Co’s NFTiff collection are among some of the latest launches by brands in the Apparel and Luxury Goods industry.
As for other apparel/luxury names on the list, CoinGecko includes Louis Vuitton, which launched NFTs as part of the Louis: The Game video game; LVMH-owned Givenchy, which teamed up with artist Chito to create a series of 15 NFTs in November 2021, and Hublot, which partnered with artist Takashi Murakami; Coach, which launched its first NFTs in December 2021; Prada, which boasts an NFT-tied Time Capsule Collection; Lacoste; and Macy’s, which a announced this summer that it would auction off 10 limited-edition NFTs as part of its 95th Thanksgiving Day Parade.
Reflecting on the findings, CoinGecko co-founder and chief operating officer Bobby Ong, says that “in spite of current bear market conditions, many of these ‘traditional’ companies are leveraging NFTs in their brand and marketing efforts as a way to engage their audience and communities.” It will be “interesting,” he notes, “to see how this trend holds up next year – and if brands in industries outside of this list unlock NFTs in their marketing strategies.”
CoinGecko’s findings follow from data compiled on Dune Analytics, which revealed that Nike, Dolce & Gabbana, and Tiffany & Co. are among the most notable companies generating revenue from NFTs. According to the Dune Analytics data, which sheds light on the primary sales revenues, secondary transactions, and royalties associated with some of the early-moving brands participating in the NFT space, as of August, Nike had generated a total of $185.31 million in revenue from its NFT collections, namely, those from RTFKT, the digitally-native brand that it acquired in December 2021.
Taking second place on the overall list was Dolce & Gabbana, which made headlines – and set records – in October 2021 in connection with its release of Collezione Genesi, a nine-piece collection of fashion NFTs and physical garments that sold for the equivalent of almost $5.7 million. The Italian fashion brand has since expanded its NFT offerings, enabling it to generate $25.65 million in total NFT-related revenue, with $23.14 million of that coming by way of primary sales revenue and $2.52 million in royalties (on 9.11k transactions).
And not to be overlooked, Tiffany & Co. landed in the number 3 spot, with $12.62 million in primary sales revenue. That figure is the result of the 250 NFTs that the LVMH-owned jewelry company offered up and sold to CryptoPunks NFT holders this month for 30 ETH each. According to the Dune data, Tiffany & Co. does not generate royalties for secondary sales; however, the secondary volume for the Tiffany & Co. NFTs is worth $3.4 million based on 74 secondary transactions.
THE BOTTOM LINE: Sportswear, apparel, and a handful of luxury goods brands continue to hold the title of the quickest-movers when it comes to testing the web3 waters (from NFTs to presences on metaverse platforms like Roblox) in an attempt to stake a claim in the burgeoning new market that is being built in the digital realm.