Although they have been part of the tech scene for nearly a decade, NFTs have only blazed into the mainstream over the past year, with billions in transactions (primarily in cryptocurrencies) flooding the space and relentless media coverage of innovations in the sector. But for the luxury industry, the utility of NFTs remains unclear, with only a handful of early adopters experimenting with the production of virtual goods, while others have turned to the technology underpinning NFTs as a means of product authentication in the perennial fight against counterfeits.
To mark the launch of Jing Daily’s new Insight Series of reports highlighting the key revenue-generating trends for luxury brands, we turn first to the world of NFTs. After reshaping the global art market over the span of just a few months, NFTs are increasingly gaining the attention of brands like Rimowa (which launched its first-ever NFT earlier this month) and watchmaker Jacob & Co. (creator of an NFT timepiece that sold at auction for $100,000), while the likes of LVMH and Gucci have shown interest in the space.
Jing Daily’s The NFT Potential for Luxury examines the opportunities and risks for brands in the ongoing NFT boom. The report provides global context as well as a specific look at China’s complex crypto market, a list of key marketplaces, and our Jing Daily Trend Rating on the long-term potential of NFTs for luxury brands.
The report examines recent developments including:
- “Nearly-NFT” virtual sneakers by Gucci and Dior
- The launch of LVMH’s Aura Blockchain Consortium
- An NFT fragrance by Look Labs
- The sale of a Jacob & Co. NFT watch at auction for $100,000
- The $9.5 million seed-funding round by Richemont-connected Arianee
Risks are of particular interest to luxury brands and retailers considering whether to invest in the NFT boom. Already, brands and artists have seen pushback among consumers due to the potential environmental impact of the technologies underpinning NFTs, and the risk of trademark infringement remains high owing to the “Wild West” nature of the NFT market.
Understanding new technologies like NFTs and their potential applications is crucial for any globally minded luxury brand or retailer today. The NFT Potential For Luxury breaks down the trend in an easy-to-follow, actionable format to help brands formulate revenue-generating plans to benefit now and in the years to come.