Amid the luxury brand’s expansion into Web 3, one holder claims that awarding a community is not a terrible idea.
Currently, Gucci Material NFTs holders can trade the tokens for either a Gucci x 10KFT cobranded duffle bag or Gucci bifold wallet. This announcement comes after months of speculation concerning the proposed utility that minted 2896 NFTs in March.
Kering-Owned Brand Unveils Redemption Facility
This week, the Kering-owned brand unveiled redemption facility on 10KTF.shop, a partner network. One can redeem one Gucci Vault Material NFT to get a wallet, while three tokens are required to exchange the duffle.
A tongue-in-cheek writeup provided by the copyrighting team labels the duffle ‘baggage you will want to carry,’ while the wallet is labeled as one not requiring a seed phrase. A fast calculation reveals that this bag may be considered the most suitable alternative for Gucci fans and collectors. On the Gucci e-commerce site, a similar-looking wallet costs $460, while the bag’s similar version, though in the absence of the 10KTF logo, sells at $1790.
Cobranding Material NFT with 10KFT Yields Scarcity Characteristic
On Opensea, this Material NFT is trading for 0.22 ETH, approximately $412. This bag has also been cobranded with 10KFT, making it have the ‘money cannot purchase’ scarcity characteristic.
The Gucci Vault Material NFT was a prize for participating in a 10KTF initiative in Battle Town. One required a Gucci Grail NFT for entry, and NFT was airdropped to the partakers.
The founder of technology consultant M7 Innovations, Matt Maher, emphasized that possessing a Gucci Grail alone did not reward an individual. He has just exchanged his token for a Gucci Wallet. He also added that in the future, individuals should anticipate viewing this ‘engage-to-earn’ and ‘play-to-earn’ model more.
Maher believes the strategy was excellent since it links the digital divide and physical product holders. In this case, he said that for Gucci supporters, this is an additional and free luxury product in their collection. He added that Web3 degen serves as a ‘trial product’ that introduces them into the Gucci world and establishes a significant pull towards this brand.
Matt Maher further claimed that awarding a community is always a good idea. The NFT market is cynical, making holders debate a reward’s value and/or utility. However, it is still a reward.
Strategic Variations Evident Web3 Fidelity Programs
Strategic variations exist between the operation of Web3 fidelity programs by various luxury goods and how token holders are rewarded. For instance, one can consider the VIA program by Louis Vuitton.
Despite the 100-odd buyers of its original Treasure Trunk NFTs worth $41600 receiving a limited edition of Louis Vuitton trunk, up to now, successive perks have entailed only a choice to buy creative director Pharell William’s limited edition ‘bitcoin orange’ Speedy 40 bag. This bag is worth approximately $9000.
Concerning Dior, those holding the digital twin collectible that was accompanied by B33 sneakers will get an early access choice to buy a special drop from Dior Men’s Spring ’24 collection. Despite not being a free drop, 3333 Gucci KodaPendant NFTs, a partnership with Yuga Labs for the metaverse game, also introduced an exchangeable physical cobranded pendant necklace in 925 silver.
Gucci Forges Alliance with Christie Auction House to Facilitate NFT Sale
Recently, Gucci partnered with Christie’s, an auction house, on an NFT sale illustrating the work of prominent digital talents in the digital art space. This includes Iskra Velitchkova, who came up with a generative algorithm motivated by the handle of the Bamboo 1947 bag by Gucci.
Matt Maher claims the Web3 local brands and dealers of more traditional physical luxury benefit from a mutual relationship. This is because they complement each other’s inadequacies. On the one hand, one possesses all the digital knowledge and no credibility regarding physical products. On the other hand, the other possesses all the real history and physical knowledge but lacks credibility concerning NFT-first digital goods.
Partnerships such as that between Gucci and 10KTF parent Yuga Labs, along with Rimowa and RTFKT and Tiffany & Co and CryptoPunks, are a representation of how to fix the gap that capitalizes on mutual elements of selection and scarcity.
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