Luxury goods account for 20% of goods sold in 2022 by crypto-enabled sellers

2022 was the year of hype around Web3, but 2023 looks set to be the year when the plans are implemented. Luxury brands now focus on more concrete exploitation closely linked to the physical product as opposed to digital assets that exist only for the metaverse.

Everything then boils down to the use of crypto and digital assets for transactional purposes.

Luxury in Web3

Web3 has gradually established a warm relationship with luxury goods, and several brands that target these markets in particular have managed to position themselves in the space. However, there is more to the story than just tapping into a sector prepared to spend significant sums of money. These brands also bring their loyal following to Web3.

Ralph Lauren recently announced a partnership with BitPay to accept crypto for the first time at its new store in Miami’s Design District. The new offering also includes a crypto-native experience that provides NFTs via a multi-layered partnership with online leisure community Poolsuite, calling it “deeply rooted in the Miami lifestyle.”

According to Merrick Theobald, Vice President of Marketing at BitPay, consumers have gravitated towards using crypto to pay for luxury goods thanks to the popularity and emergence of user-friendly platforms. While speaking with CryptoPotato, the manager said:

“One of the most difficult aspects of widespread crypto adoption will be education around blockchain technology, wallets and how to send digital assets to the right addresses. These are all key points that both consumers and sellers should be aware of.”

According to data collected by BitPay, nearly 20% of goods purchased last year were crypto luxury goods. This includes gold, jewellery, watches, exotic cars, boats, property, yachts and handbags. While cars and yachts accounted for 20% of the total, jewelery and clothing accounted for 15% and 12% for watches.

The US clothing retailer’s decision to dip its toes into Web3 illustrated a growing trend of luxury goods becoming a favorite among the crypto crowd. But what does this mean for the future of crypto payment usage?

Cracking mainstream appeal

For true crypto adoption, daily necessities must be paid for in crypto or digital assets. This has mostly been a contentious topic. But BitPay’s Theobald expects such a trend to follow in the near future, with luxury goods leading the way.

“As digital assets gain traction, I think we will see a downstream effect from luxury goods to everyday things paid for in crypto. In fact, we are already seeing this happen in real time with El Salvador adopting Bitcoin as legal tender and many online merchants starting to offer crypto payment options at checkout.”

Exec also believes that peer-to-peer transfer services and education will act as an effective on-ramp for crypto as more people demand an alternative in the transition to the digital economy.