Gucci has unveiled an exciting utility for its Gucci Material NFTs, allowing holders to exchange their tokens for premium merchandise. The luxury brand, owned by Kering, collaborated with the partner platform 10KTF.shop to offer bifold wallets and Gucci x 10KTF co-branded duffle bags as redemption options for the NFTs.
Gucci reveals utility behind the Material NFTs
The much-awaited reveal comes after months of speculation about the purpose and utility behind the 2,896 NFTs that were minted in March. To avail themselves of the redemption facility, token holders can head to the 10KTF.shop platform. While a single Vault Material NFT can be exchanged for a wallet, three tokens are required to redeem the exclusive co-branded duffle bag. The accompanying copy for the duffle bag humorously touts it as “baggage you’ll want to carry,” while the wallet is described as one that doesn’t require a seed phrase.
A closer look at the value proposition shows that the duffle bag might be considered the better deal for Gucci enthusiasts and collectors. An identical wallet available on the official Gucci e-commerce site is priced at $460, whereas a similar version of the co-branded duffle bag, albeit without the 10KTF logo, is valued at $1790. On the popular NFT marketplace Opensea, the Gucci Material NFT is currently trading at 0.22ETH, roughly equivalent to $412.
Considering the bag’s exclusivity and co-branded appeal, it boasts a rarity value that goes beyond monetary measures. The Gucci Vault Material NFTs were initially rewarded to participants in a 10KTF mission within Battle Town. To enter, participants needed a Gucci Grail NFT, and upon engagement, they were airdropped the coveted Gucci Material NFT. This unique “play-to-earn” or “engage-to-earn” model is expected to gain momentum in the future, as it incentivizes active participation and bridges the gap between the digital and physical worlds.
Bridging the gap between digital and physical experiences
According to Matt Maher, founder of technology consultancy M7 Innovations, Gucci’s strategy is a smart move that rewards its community and showcases a clear understanding of its audience. For Gucci loyalists, the redemption presents an opportunity to own another luxury product, effectively for free. Simultaneously, it serves as a “trial product” to introduce Web3 enthusiasts to the world of Gucci, creating a gravitational pull toward the brand.
Comparatively, other luxury brands have taken different approaches to reward their token holders. Louis Vuitton’s VIA program offered a limited edition Louis Vuitton trunk to purchasers of its Genesis $41,600 Treasure Trunk NFT. Subsequent perks, however, were limited to an option to buy a “bitcoin orange” Speedy 40 bag by Pharrell Williams, priced at around $9,000. Dior, on the other hand, granted holders of its digital twin collectible, which accompanied its 470 limited edition B33 sneakers, early access to an exclusive drop from Kim Jones’ Dior Men’s Spring ’24 collection.
Collaborations between luxury brands and NFT platforms like Gucci’s with 10KTF parent Yuga Labs, Tiffany & Co with CryptoPunks, and Rimowa with RTFKT aim to bridge the gap between the digital and physical realms, leveraging shared concepts of exclusivity, scarcity, and rarity. Maher believes that this symbiotic relationship between Web3-native brands and traditional luxury players fills in each other’s gaps, with one excelling in digital lore and the other in physical products. Collaborations become a means to strike a balance and capitalize on the best of both worlds.
Gucci’s latest venture in the NFT space, combined with its successful partnership with Christie’s in showcasing digital art talent, demonstrates the brand’s commitment to innovation, engagement, and embracing the possibilities of the metaverse. As luxury brands continue to explore the realm of NFTs and digital collectibles, the intersection of digital and physical experiences will undoubtedly pave the way for exciting and unique opportunities for both token holders and traditional luxury consumers.
