While many retailers already accept cryptocurrency as payment, it’s unusual for a luxury brand to do so. For one, the typical setup converts cryptocurrencies into fiat currency. But Gucci hasn’t said whether it will convert bitcoin into U.S. dollars. The company is currently building a virtual vault for its NFTs. Here are some other reasons why Gucci may want to add cryptocurrency to its payment methods.
Off-White accepts cryptocurrency payments in its stores
Off-White has announced that it now accepts crypto payments in its stores. The company already accepts many cryptocurrencies, including Bitcoin and Ethereum, but the service is still new. Off-White will use a LUNU POS terminal to process the transaction, which automatically figures out the crypto-to-fiat exchange rate at the time of purchase. The LUNU terminal is compatible with multiple crypto wallets, and customers can use a QR code to pay. The company has no set limit on the amount of cryptocurrency that can be spent on the store’s merchandise.
Off-White’s decision to accept cryptocurrency payments shows that the brand is aware of the risk of accepting cryptocurrencies in its stores. Moreover, the company has taken steps to protect itself from any possible losses associated with cryptocurrency payments. The company also wants to expand its customer base among the Gen-Z generation, which consists of consumers who are more tech-savvy than their predecessors. While the fashion industry has been slow to adopt cryptocurrency, luxury brands such as Gucci, Louis Vuitton, and Dolce & Gabbana have already adopted the technology.
Abloh’s team is now running Off-White. The company wants to carry on Abloh’s legacy by embracing blockchain technology. Off-White’s latest initiative is to stream its Autumn/Winter 2022 fashion show on TikTok. As TikTok is a social platform with a large Gen Z user base, it’s a perfect fit for the brand’s Gen-Z customers.
Gucci is building a virtual ‘Gucci Vault’ for its NFTs
The latest metaverse collaboration from Gucci involves creating a digital ‘Gucci Vault’ to host its NFTs. The company has collaborated with multimedia company SUPERPLASTIC on the project, which will see the brand produce its NFTs and make them available for purchase. This collaboration will allow Gucci fans to buy exclusive NFTs from artists, brands, and more.
This ‘Gucci Vault’ will feature ad hoc outfits and accessories from 11 NFT collections, each designed by a different artist. The company has also partnered with leading digital artists to reimagine its historic know-how. Gucci will have something special for original devotees of its fashion line, as the digital ‘Gucci Vault’ will feature pieces by Michele.
As part of its metaverse investment, Gucci has purchased land in the metaverse, which allows non-technical users to create their own NFTs. In January, the brand collaborated with SUPERPLASTIC to develop a virtual reality version of its NFTs, called SUPER GUCCI. The company says it will use the virtual world to showcase NFT collaborations, vintage pieces, and more.
The first NFT release by Gucci was last year, based on its 2021 Fall/Winter collection. This collection was based on a four-minute short film, ‘Aria’. This piece was sold at Christie’s for $25,000 and was eventually purchased by the buyer. In addition to the NFT collection, the brand also sold a digital version of the Dionysus bag via Roblox last August, a digital version of the original model sold for $4,115, more than 20 percent of its actual value.
Off-White isn’t the first luxury brand to accept cryptocurrencies
Off-White isn’t the first fashion brand to embrace crypto. The founder of the label, Virgil Abloh, has hinted at plans for Web3 and DAO, but it’s not clear whether the brand will use them for transactions. The brand has also hosted a discussion forum, The Sole NFT, about cryptocurrency. While it is unclear if the company plans to incorporate cryptocurrency in its storefronts, it is a smart step in the right direction.
Off-White will use a POS terminal that can automatically find the best currency-to-crypto exchange rate and is compatible with multiple cryptocurrency wallets. Another high-end fashion brand, CHARLES & KEITH, has also accepted cryptocurrency. However, the recent crackdown on cryptocurrency trading is creating additional challenges for luxury brands. For example, China has banned cryptocurrency trading, while Europe is examining whether to introduce compulsory regulation on identifying creditors.
Off-White isn’t the first high-end fashion brand to embrace crypto, but it is certainly one of the most interesting. Abloh is a legendary designer of luxury streetwear, and this collaboration is proving to be a successful one. While Abloh has since passed away, the brand is still run by Abloh’s team. To celebrate his memory, the brand has launched its Autumn/Winter 2022 show on the video social network TikTok. TikTok is dominated by Gen Z users, making it the perfect platform for a brand like Off-White to attract these consumers.