Non-Fungible Token or NFT, a digital asset that has the ability to represent a valuable object, is proving to be a game changer in various industries. Its popularity in recent years encouraged many large companies to adopt this technology, garnering enthusiastic reception from the crypto community.
This article explores four major companies from different industries that have successfully integrated NFT technology into their flagship programs. Read the full article below.
Article Summary
- 🧤 Based on data from Dune Analytics, the entry of major brands into the NFT world in 2022 was primarily dominated by the luxury fashion and sportswear apparel industries.
- ☕ Starbucks launched the Starbucks Odyssey program, which combines blockchain technology with Starbucks’ rewards program, and released several NFT editions that managed to reach $143,000 in sales.
- 💸 Through collaborations with Bored Ape Yacht Club and Prada, as well as the launch of its own NFT collection, Adidas generated up to $22 million in NFT sales.
- 👟 After acquiring RTFKT Studios, Nike launched the digital sneaker Cryptokicks and the Web3 .Swoosh platform. Nike generated $1.3 million in sales from the Our Force 1 (OF1) NFT collection.
- 💰 Dolce&Gabbana, in their NFT debut, achieved sales of 1.8 million ETH from nine NFT collections and the “Collezione Genesi” couture fashion collection, including the sale of the “Doge Crown” for 1.2 million USD.
1. Starbucks
The American coffee company headquartered in Seattle, Washington is one of the companies with a vast network of coffee shops spread around the world. In Indonesia alone, Starbucks has around 500 stores in major cities across the country.
With the success of its coffee sales and various merchandise, Starbucks began to enter the Web3 world by launching the Starbucks Odyssey program. Starbucks Odyssey is an extension of the Starbucks Rewards program, where Starbucks is partnering with Polygon, to open up its NFT collection to Starbucks Rewards members and also to Starbucks employees in the United States through interactive activities themed “Journey Stamps.”
The program has been underway since September 2022, and Starbucks has released several editions of NFTs, including 5000 Holiday Cheer Edition 1 Stamps for the Starbucks Odyssey beta launch in December 2022, 2000 The Siren Collection stamps that sold out in just 18 minutes, and 5000 First Store Collection unique stamps released last April. Total Starbucks NFT sales are estimated at $143,000.
What’s interesting about The First Store Collection NFT is that shoppers can earn 1,500 loyalty points in the Starbucks Odyssey app. Not only that, but holders of this NFT also receive several exciting benefits such as exclusive Starbucks merchandise, access to exclusive coffee classes, donation opportunities, and the chance to get free drinks at Starbucks every day for 30 days.
2. Adidas
Being one of the world’s largest footwear and apparel manufacturers, Adidas took a keen interest in exploring the blockchain industry and delving into the world of Web3 through NFTs. It began in 2021, when Adidas collaborated with Gordon Goner of Bored Ape Yacht Club and Gargamel, founders of Pixel Vault Gfunk.
Adidas’ inaugural Metaverse Drop collaboration, named “Into the Metaverse,” offered a collection of 30,000 NFTs. Holders of these NFTs were granted the opportunity to exchange their tokens for wearable devices within the Metaverse, along with exclusive Adidas products like hoodies, sportswear, and an eye-catching orange beanie. This extraordinary collaboration turned out to be a success, raking in an impressive $22 million in revenue for Adidas.
In January 2022, Adidas joined forces with the renowned brand Prada to create a another NFT collection. This collection featured artwork in the form of photos, using filters crafted by the digital artist Zach Lieberman. These photos were compiled and formed into an artwork named “Adidas for Prada re-source,” which garnered significant attention and was successfully sold for 30 ETH.
NFT Adidas 2023
In 2023, specifically in April, Adidas became more aggressive in collaborating with various partners and also released surprises for the holders of NFTs from the Into the Metaverse collection Phase 1 and Phase 2. Where these NFT owners can burn and receive rewards in the form of new NFTs from the ALTS by Adidas collection.
The ALTS NFT collection program continues to be updated. In May 2023, Adidas distributed three NFTs called Rift Valley Motel Coins to ALTS NFT holders. These coin or token shaped NFTs serve as a reward for the second chapter of Adidas. There were 10,550 ALTS holders who received these free tokens that can be used at the Rift Valley Motel vending machine. Here’s a tutorial on how to use the machine:
Adidas has been an extremely active brand in leveraging the momentum to enter the Web3 world through collaborations with top partners. Adidas is proof that the spirit found in the world of footwear and apparel can be integrated into the metaverse and NFT universe.
3. Nike
Nike, the world’s largest footwear and apparel manufacturer, often referred to as Adidas’ eternal rival, has also joined the NFT industry. In a bold move to enter the NFT world, Nike acquired RTFKT Studios, a virtual sneaker startup that has been established since 2019, in 2021. After acquiring RTFKT Studios, Nike launched its first digital sneakers, called Cryptokicks, in 2022. There were 20,000 digital Cryptokicks sneakers, and one of them, designed by artist Takashi Murakami, sold for $134,000.
After acquiring RTFKT Studios and releasing its first NFT digital sneakers, Nike made another move by launching a new Web3 platform called .Swoosh, which offers NFT products based on the Polygon protocol. Through the .Swoosh platform, Nike has become a hub for launching various virtual apparels ranging from t-shirts to shoes, which can be used by avatars in Web3 games.
After making its debut with the launch of the .Swoosh platform, Nike released its first NFT product there a few months later, the Our Force 1 (OF1) collection. This collection consists of Polygon virtual NFT sneakers designed to pay homage to the iconic and legendary Nike Air Force 1 sneaker, which has been around for more than 41 years. The collection includes two types of products: the Classic Remix Sneaker Box, which contains virtual kicks that mimic Air Force 1 shoes released between 1982 and 2006, and the New Wave Box, which contains shoes designed in 2007 and beyond. In its initial launch, 66,000 NFTs were sold and Nike earned approximately $1.3 million in sales profit.
NFTs remain a focus for Nike in 2023. In June 2023, Nike entered into a partnership with EA Sports, a company that produces a variety of games. This partnership will allow EA Sports to incorporate .Swoosh NFTs into its e-sports games. Another collaboration was made with game developer Epic Games, the creator of Fortnite.
Nike’s efforts to enter the world of NFTs show that the company is highly adaptable to evolving technologies. From acquiring RTFKT Studios to launching a Web3 platform, Nike’s actions demonstrate its seriousness and belief in the future of the Web3 and NFT industries.
4. Dolce & Gabbana
Dolce & Gabbana, a luxury fashion brand and house from Italy, also jumped into the NFT industry and immediately broke the record for the highest NFT sales in the fashion category. In October 2021, Dolce & Gabbana released nine NFT collections and the latest couture fashion collection called “Collezione Genesi”. This sale generated a profit of 1.8 million ETH, which was equivalent to IDR 81 billion at the time.
Dolce & Gabbana’s first NFT collection, Collezione Genesi, was launched on the luxury marketplace UNXD and built on Ethereum’s layer 2 polygon. However, the most iconic and eye-catching piece of the collection was the “Doge Crown”, a digital artwork consisting of seven sapphires and 142 diamonds, which sold for $1.2 million.
A few months later, in February 2022, Dolce & Gabbana launched another NFT collection called “DGFamily NFT Community”. This collection continued to use the UNXD platform as a gateway to access exclusive luxury products through a ticket called the “DGFamily Box”.
The collection consisted of three different boxes, each offering benefits in the form of experiences that would take their owners on a journey between real life and the metaverse.
The first box is the Black Box. Owners of this box get access to the first level of DGFamily, which includes exclusive digital/physical products of Dolce & Gabbana clothing, a series of digital/metaverse events, and various special bonuses.
The second is the Gold Box, which is sleeker, shinier and more exclusive. Holders enjoy all the privileges of the Black Box, plus additional benefits such as access to rarer Dolce & Gabbana products and invitations to various events, as well as an exclusive premium Dolce & Gabbana set.
The third box is The Platinum Box, which represents the pinnacle of the DGFamily community in terms of exclusivity. Ownership of The Platinum Box grants all the privileges of The Gold Box, plus additional exclusive benefits such as access to very special and rare items and invitations to intimate Dolce & Gabbana events. However, obtaining a Platinum Box is only possible through special access.
Advantages of Large Brands Adopting NFT
- Keep up with the trends: NFTs are still in the early stages of becoming commonplace and socially accepted. However, their emergence is certainly exciting and can bring several benefits, one of which is brand exposure.
- Generate profit: NFTs can generate impressive sales, which of course means great profits for a large brand with many fans. NFTs can serve as a new revenue stream for a brand.
- Reward fans: NFTs can be used to reward and incentivize consumers through innovative gifts, exclusive access, and various other benefits. Such rewards can enhance the relationship between the brand and its consumers.
Conclusion
The entry of major brands into the NFT world signifies recognition and acceptance of NFTs as a technology that offers many benefits to a brand. Brands with significant capital and investment in NFTs can drive broader and more creative adoption of NFTs.
According to data from Dune Analytics, the major brands entering the world of NFTs in 2022 were dominated by the luxury fashion and sportswear apparel industries. Nike was the brand that generated the most NFT revenue at $185 million, followed by Dolce&Gabbana at $25 million.
The confidence of these major brands in the NFT world opens the door for various other industries and brands to start looking at the significant potential of NFTs.
References
- Starbucks, Starbucks Brewing Revolutionary Web3 Experience for its Starbucks Rewards Members, accessed on 27 July 2023.
- Toby Bochan, Starbucks Odyssey Releases ‘The Siren Collection,’ Its First Limited-Edition NFT Drop, Coindesk, accessed on 27 July 2023.
- Mia Sato, Starbucks sold 2,000 NFTs in 20 minutes — coffee not included, Theverge, accessed on 27 July 2023.
- Jay Peters, Adidas sold more than $22 million in NFTs, but it hit a few snags along the way, Theverge, accessed on 27 July 2023.
- Erika Lee, Exclusive: Adidas Shares Web3 Journey, Teases Chapter Two of ALTS, Nftnow, accessed on 27 July 2023.
- Rosie Perper, Nike OF1 NFT Sale Surpasses $1M Despite Delays, Tech Issues, Coindesk, accessed on 27 July 2023.
- Richard Lawler, Nike just bought a virtual shoe company that makes NFTs and sneakers ‘for the metaverse’, Theverge, accessed on 27 July 2023.
- Metav.rs, Top 5 of brands with the most NFT revenue in 2022, accessed on 27 July 2023.
- Stuti Mansata, Dolce and Gabbana Drops DGFamily Glass Box NFT Collection, Cryptotime, accessed on 27 July 2023.
- Tanzeel Akhtar, Dolce & Gabbana’s First NFT Collection Sells for $5.7M, Coindesk, accessed on 27 July 2023.
- Anndy Lian, NFTs and Big Brands: Exploring new possibilities, Cryptoslate, accessed on 27 July 2023.