Gucci begins NFT collaboration with Yuga Labs

During the 2023 edition of Metaverse Fashion Week, 28-31 In March, Gucci announced a new partnership with NFT (Non-Fungible Token) giant Yuga Labs, creators of the famous NFT Bored Ape Yacht Club collections and currently owners of CryptoPunks and Meebits.

Every day, an increasing number of large companies are approaching Web3 ecosystems and the metaverse in general, and the fashion giants are no exception; in fact, it is fair to say that they are at the forefront and are competing to take a slice of an emerging market with enormous potential.

Unlike cryptocurrencies, the so-called Non-Fungible Tokens (NFT) are not fungible, which means they cannot be duplicated. This means that different digital assets (eg drawings, videos or GIFs) can be authenticated and become unique and indivisible assets resulting in a title deed for the buyer. In addition, the owner will have access to a multitude of services and opportunities in addition to the object itself depending on the NFT purchased, as well as the ability to be able to sell and buy tokens for fundraising or pure profit.

Gucci’s journey into the NFT sector: this time it will be Yuga Labs

This isn’t the first time Gucci has ventured into cryptocurrencies. Last year, the Italian fashion house announced that it will accept ApeCoin (APE), a cryptocurrency associated with the world famous NFT collection Bored Ape Yacht Club, in some US stores, becoming the first major brand to accept APE payments.

In addition, Gucci has made other investments within the Web3 and metaverse ecosystems, including:

• In February 2022, it purchased an undisclosed amount of land in The Sandbox game as an experimental base for virtual experiences. Within The Sandbox metaverse, it is possible to develop your own video game using the free Game Maker software, but also to design and run a business. In fact, built on the Ethereum blockchain, inside The Sandbox it is possible to buy and customize virtual land using the token called $SAND.
• In March 2022, it signed an agreement with the popular NFT project called 10KTF (a digital fashion startup also acquired by Yuga Labs), to launch its own unique and custom ‘Gucci Grail’ collection, designed by Alessandro Michele and made by digital craftsman Wagmi-san.
• In June 2022, the native NFT bought $25,000 worth of SuperRare market tokens to join the DAO and open a digital art vault.

A further step was taken this Monday in the Metaverse Fashion Week 2023 within the Decentraland metaverse, as reported by Robert Triefus, Senior Executive of Gucci Vault & Metaverse Ventures, the company was actually pleased to reveal the success of a multi-year agreement partnership with Yuga Labs, which strengthens the engagement between the communities of both companies and promotes the convergence of the fashion and entertainment industries in the Otherside metaverse of Yuga Labs and its 10KTF collection, with the goal of exploring joint possibilities between fashion and Web3 entertainment.

“We are excited to reveal this multi-pronged partnership with Yuga Labs, a leader and creative pioneer in Web3, which will allow us to play an active role in the ongoing narrative of Otherside and 10KTF, which will unfold in multiple forms.”

The potential of NFTs in the fashion industry

In 2023, the NFT market reached an estimated value of $22 billion, growing approximately 220 times in not even a year in 2021, with recorded sales of $25 billion.

Despite a total collapse of the market beginning in September 2021, with sales falling as much as 90%, thanks to projected investments in the Web3 world, NFT market growth is approaching $80 billion by 2025.

Although it may seem counterintuitive, the sharp decline in NFT sales that began in late 2021 has forced industry giants like Yuga Labs to seek new partnerships to achieve ever-changing reward opportunities.

On the other hand, large corporate giants, from the so-called big tech (such as Amazon, Apple, Spotify, Meta, Ebay and Twitter), to fashion or entertainment giants (Dolce & Gabbana, Louis Vuitton, Burberry, etc.), are increasingly curious on approaching and implementing Web 3.0 solutions given the public interest, commercial benefits potential and creative insights that this world can offer, while having the means at their disposal to always explore new solutions.

Creators of non-fungible tokens and these large companies therefore have a common interest in converging towards new partnerships and interconnections, as both can reap a huge potential gain.

As we noted earlier, luxury fashion giant Gucci has always been at the forefront in this regard, given the advances and investments presented to the public in recent years, there is no doubt that more exciting updates will be on the way.

Given the weight of the company and Yuga Labs’ expertise, there is no doubt that a proven partnership can produce potentially game-changing innovations for the entire luxury digital fashion market and beyond.

Consumer attention to brands like Gucci and its skill in creating the right hype, its know-how in marketing campaigns and new product creation, can shed a new light on the entire digital luxury fashion market, bringing excitement back to consumers and competing companies, enticing them to become join the battle to conquer the metaverse.

Therefore, one must pay close attention to the next steps, so as not to fall behind and come prepared when one is ready to enter the world of digital fashion and NFTs in general.

It couldn’t be a better time, given the sharp decline in sales and the market in this recent period, it is good to use your time to expand your knowledge and keep up to date with the ever-fast times in this industry, so that you are prepared for a possible positive countertrend and enter the market at the right time.