An Overview of Gucci's Entrance Into web3
This article was initially posted on my Mirror here.
Overview
Gucci has an active web3 presence, becoming a clear new benchmark for luxury brands engaging online. As consumer patterns of consumption change, digital disruption is inevitable. Gucci is changing the narrative by embracing this disruption and finding new ways for their customers to engage with the brand. Gucci has recognized that you have to meet people where they are, and is regularly partnering with web3-native companies to continue to push the envelope. Cultural trend-setting, fashion-forward design, and honoring the past are three themes consistent with Gucci’s style and storytelling. This article will outline Gucci’s current initiatives, dive into how the brand has organized its web3 efforts, dig into recent NFT analytics, and finish with a conclusion.
Timeline of Activity in web3
June 2021 - Auctioned first NFT at Christie’s (a 4 minute film)
January 2022 - Launched SUPERGUCCI NFT collection in partnership with Superplastic
February 2022 - Launched Vault: an experimental space utilizing web3, also acquiring virtual land in The Sandbox metaverse
March 2022 - Launched 10KTF Gucci Grail NFT collection (in partnership with 10KTF)
May 2022 - Created Gucci Town, a Roblox event/persistent town inside of Roblox
July 2022 - Launched ‘The Next 100 Years of Gucci’ curated art marketplace with SuperRare
Initiatives
Christie’s Proof of Sovereignty: Christie’s NFT drop in June of 2021 included Gucci’s first ever NFT sold. Gucci’s NFT debut was a digital animation drawing from the fashion film co-directed by Alessandro Michele and Floria Sigismondi. Sales of the NFT benefited UNICEF USA in support of COVAX.
Gucci Vault (web3): An experimental concept store/space. The Vault is a digital exploration, consisting of exclusive Gucci NFTs, rare vintage selections, and community voting. Exclusive ‘capsules’ of handpicked vintage and retro clothing are for sale, and the Vault will serve as a hub for Gucci’s web3 efforts moving forward. Within the mobile experience, Vaultartspace prompts users to connect their web3 wallet and bid on recent art additions through the open auctions taking place. Users can easily join the Discord server through the mobile experience and learn more.
10KTF x Gucci (Grail): This project consists of a unique collection of personalized NFTs envisioned by Gucci’s Alessandro Michele, crafted by ‘digital artist’ Wagmi-san. Wagmi-san is a fictionalized digital artisan that lives in ‘New Tokyo’, who crafts 1:1 accessories for select NFTs. The exclusive mint was limited to NFT holders of specific collections, SUPERGUCCI NFT holders, and 10KTF shop members. The NFTs minted at 1 ETH, generating 4,253 ETH in sales.
SUPERGUCCI: Gucci and SUPERPLASTIC (a limited edition vinyl toy and digital collectable company) teamed up to create SUPERGUCCI. Each NFT incorporates house codes found in the Gucci Aria collection, and unlocks an exclusive 8-inch tall white ceramic SUPERGUCCI sculpture, hand-crafted by ceramicists in Italy, limited to 500 hand numbered pieces. On June 17th, a wallet snapshot was taken to verify SUPERGUCCI holders. Holders were required to hold the SUPERGUCCI NFT in their wallet for the entire hour. The handmade ceramic sculptures will ship in 2022.
The Next 100 Years of Gucci: Gucci partnered with NFT marketplace SuperRare to launch the brand’s first experimental art space, called Vault Art Space. The first collection features 10 NFT artists, with a prompt to reflect on Gucci’s 100-year legacy and present their vision for its next chapter. Artists in this project include Alexis Christodoulou, Aliendope, Diberkato, Drew Young, Jordan Schiffer, Pet Liger, trs.mnz, Tyler Spangler, Vexx, and YEAHYEAHCHLOE.
Gucci Town in Roblox: A persistent space in Roblox that takes the form of a piazza/open-air square created for socializing and interacting with Gucci in all of its forms. Most notably, this includes the Gucci Shop, a boutique where visitors can purchase digital Gucci items to collect, or to outfit their Roblox avatars.
Relatedly, Gucci has also partnered with the fashion-focused metaverse Zepeto, announced plans to launch a virtual world on the blockchain-based platform The Sandbox, and created assets for games including The Sims, Pokémon GO, and Animal Crossing.
POS System
It is unclear what connectivity platform(s) Gucci has partnered with. In 2019, Gucci operated 487 stores with over 17,000 employees, generating over € 8.2 billion in sales.
USD is the only accepted currency on Gucci’s website for US customers. Payment methods include traditional credit cards, ShopPay, Google Pay, and Paypal. The Euro is accepted overseas.
Discord Info
Gucci has made extensive use of Discord, and creative director Aleesandro Michele is bullish on the potential of NFTs to transform how consumers interact with the brand. Gucci’s Discord has the look and feel of a traditional NFT server, with token-gated access via Collab.land for Gucci Vault. The main Vault section also has convenient access to episodes of the Gucci Podcast, as well as details surrounding the Gucci Grail and SUPERGUCCI projects.
Tech Stack
Ethereum self-custody digital wallets
Opensea.io NFT store (customers pay with ETH)
Regular eCommerce payment portals
Very active social media presence (Instagram, Twitter, TikTok)
Dynamic websites, utilizing CSS, JSON, and React JS
10KTF Gucci Grail NFT Stats
ETH Contract: 0x572E33FFa523865791aB1C26B42a86aC244Df784
Blockchain: ETH
Token Standard: ERC-721
Creator Royalties: 5%
10KTF Gucci Grail NFT Metrics
Note: These metrics do not include SUPERGUCCI
To generate deeper insight into Gucci’s NFTs, I created a Dune.xyz dashboard tracking 10KTF Gucci Grail collection. Parts of this dashboard and queries were forked and modified, and others were taken from various other projects. https://dune.com/kahris/10ktf-gucci-grail
Secondary Market Analytics
(Analytics derived from Opensea.io on 7/11/22)
Current floor price: Ξ 1.05
Top price: Ξ 9.99
Average Price: Ξ 1.05
90 Day Avg Price: Ξ 1.4314
90 Day Volume: Ξ 1,759.1916
Virtual/In-Person Events
Gucci regularly hosts and co-hosts events with other brands within the fashion industry.There have been no notable in-person web3 events hosted by Gucci.
Brand Analysis
Strengths
Has embraced web3 and NFTs, using both to tastefully pair fashion and art with blockchain technology
Released and partnered with multiple different web3-native companies, and keeping its mantra of exclusivity and design at the forefront of its creations
Willing to embrace unconventional marketing to catch the attention of fashion gurus and web3 aficionados alike
Every single endeavor from Gucci in web3 has made headlines on major web3 news platforms, and the brand stays in the news on a monthly basis
Is at the forefront of creating high-value fashion items in the metaverse, with popular items that have staying power
Weaknesses
The brand is already very exclusive, and partnering with a game catered towards children (Roblox) sends mixed messages for how the brand intends to be perceived
The future and success in metaverses may rely on crafting affordable virtual merch, which is in contrast with Gucci’s culture of exclusivity
Current loyalty programs for Gucci are not web3-oriented and there are no current (known) plans to tie other parts of the business to the web3 portion
The fun factor. Creating virtual handbags in games can go a long way, but is the way the brand is engaging online genuinely enjoyable?
Gucci has had no in-person engagement events for the web3 side of the business
There is no current roadmap for utility for NFTs that have been sold. They are purely artistic
Opportunities
Gucci has the single biggest head start when it comes to fashion houses in the metaverse and in web3. If they can continue on this path, their influence will only grow
The web3-side of the business is drawing in consumers that are digital-natives but up until recently had no interest in the brand
Continuing high-value partnerships (as Gucci as done for decades) with celebrities and influencers can serve as an organic pivot into marketing web3 products and art
Threats
Other fashion house brands can follow suit, and create in-game NFTs that are more relatable and engaging than handbags and very expensive clothing
Gucci is less relatable to younger people than brands that cater to middle class fashion; casting a smaller net (only catering to high earners) is restrictive
Current bets and investments in current metaverses are a gamble, and high-value NFTs may plummet in price in the near-term
Web3-native fashion brands (starting virtually and then creating physical products) may appeal to a wider range of people, and there are plenty of nascent virtual fashion houses
A blunder within the NFT space could make a stain on the brand as a whole. This is true for any major brand
Summary
Gucci is a trailblazing, innovative, and art-centric fashion house that has embraced web3 to cultivate a new era for fashion online. With the addition of Gucci Vault, 10KTF, SUPERGUCCI, and Gucci Town, Gucci has found new ways to grab the attention of digital-natives and the fashion world alike. The Vault store has proven to be very popular, and the brand has tastefully integrated web3 wallets into their website. Web3 marketing has also elevated the voices and names of artists that otherwise would have flown under the radar, being exclusively digital and relatively unknown. The moving average chart and sales volume of the most recent collections speak for themselves, with these collections becoming highly sought-after and popular online. The web3 community for Gucci will continue to grow, and Gucci will continue to expand its presence online during the second half of 2022. Go Gucci!
Company Portals:
https://www.gucci.com/
https://vault.gucci.com/en-US/story/metaverse
https://vault.gucci.com/en-US/story/supergucci
Social Media:
https://www.instagram.com/gucci/
https://www.tiktok.com/@gucci
https://twitter.com/gucci
References:
https://vault.gucci.com/en-US/story/metaverse
https://crfashionbook.com/check-out-gucci-vaults-new-metaverse-shop-partnered-with-10ktf/
https://www.cnet.com/videos/i-went-shopping-in-the-metaverse-and-tried-on-a-gucci-bag/
https://markets.businessinsider.com/news/currencies/gucci-sandbox-metaverse-land-ethereum-roblox-nft-crypto-vault-2022-2
https://www.theverge.com/2022/5/27/23143404/gucci-town-roblox
https://www.mckinsey.com/business-functions/growth-marketing-and-sales/our-insights/marketing-in-the-metaverse-an-opportunity-for-innovation-and-experimentation
https://hyperesearch.docsend.com/view/tgdfjcy9b6pfhxnm
https://hypebeast.com/2022/7/superrare-gucci-next-100-years-drop-vault
https://opensea.io/collection/10ktf-gucci-grail
https://medium.com/@lilzeon/i-went-on-gucci-vaults-discord-server-this-is-what-i-ve-learnt-a3d41da41dd5
https://vault.gucci.com/en-US/story/supergucci
https://www.gucci.com/us/en/st/stories/inspirations-and-codes/article/10ktf-gucci-grail
https://www.instagram.com/10ktfshop/?hl=en
https://roblox.fandom.com/wiki/Gucci_Town
https://superplastic.co/products/supergucci-superjanky
https://www.gucci.com/us/en/st/stories/article/gucci-town-on-roblox
https://etherscan.io/address/0x572e33ffa523865791ab1c26b42a86ac244df784
https://opensea.io/collection/10ktf-gucci-grail
