The strategy behind Louis Vuitton’s €39k Digital Treasure Trunk NFTs
Louis Vuitton is releasing an ultra-limited edition of non-fungible token collections called Treasure Trunks. The price for each is €39,000 (around $41,600) and only a few hundred will be made available.
The Digital Treasure Trunks
According to a statement from the maison, the trunks “will act as portals into the world of Louis Vuitton, revealing new, limited products and experiences through immersive drops that will be gradually launched at regular intervals throughout the year.”
Going forward, owners will have the opportunity to purchase an ongoing series of digital keys that will unlock corresponding limited edition products.
As confirmed by the brand via email, each of the first digital treasure chests along with the purchased keys will come with the corresponding physical product that they are “thinned”.
The first digital treasure troves are “soul bound” or non-transferable tokens. The keys are regular NFTs and as such, also verified by the token, can be sold on the secondary market with the buyer receiving the connected physical product. As long as this has not already been sent to the original client of course.
While Louis Vuitton will provide clues about the product behind each key, its exact nature remains secret until it is unlocked.
How it works
On 8 June, the maison will open a separate page inviting interested parties to register. There, according to Vogue Business, they will be invited to connect their cryptocurrency wallets and fill in personal details. (Among other things, this allows them to be checked to ensure they are not bots).
On June 14, during Viva Tech, Louis Vuitton will provide additional information to prospective buyers who have passed the selection process. Then follows an invitation to purchase on 16 June.
Digital Treasure Trunks will be available for purchase in the US, Canada, France, UK, Germany, Japan and Australia.
Narrative, mechanics and positioning
Louis Vuitton started life in 1854 as a malletier and over the following 160 years has consistently distributed this heritage to create the tribe throughout its history.
That Treasure Trunks, its origin NFT collection, centers around digital versions of the aforementioned makes complete sense.
The mechanics behind the fall both guarantee and reinforce the Maison’s luxury positioning. While tokens can be purchased via either fiat or cryptocurrency, it is notable that the €39,000 price tag is stated in fiat which avoids devaluation due to crypto’s volatile nature.
By having the first tokens soul-bound (an NFT subset born out of gaming), Louis Vuitton gives ultimate control with respect to the holders of its origin coin.
But what really sets the Vuitton approach apart from the competition – luxury or otherwise – is this. While Gucci or adidas, for example, are Web3 led or Web3 first, going to great lengths to gain credibility and approval from Web3 communities such as Bored Ape Yacht Club or G Money, Vuitton is resoundingly Louis Vuitton first and luxury first.
The wider Web3 initiative that the digital tribes fall under is called VIA, which means way. And this is undoubtedly just the start of the journey.
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