Gaming, AI, NFTs: Will Balenciaga’s Big Web3 Play Pay Off?
Balenciaga is making a comeback in the NFT market with a bang. After taking a short break, the luxury brand announced a new exclusive hardware NFT wallet in partnership with Ledger in September. This wallet, equipped with near-field communication (NFC) technology, is designed to work with Ledger’s Stax device, allowing users to trade, swap, and manage their digital tokens and cryptocurrencies.
Exclusive Collaboration and Design
Balenciaga's latest creation is a logo-embossed soft leather pouch featuring a spring-loaded metal ring that can clip to a purse, belt loop, or keychain. It's customizable with individual charms, and it will be available to the public in October.
NFC-Powered Merchandise
This announcement closely followed Balenciaga’s release of new NFC-connected merchandise under its Balenciaga Music subsidiary. These physical goods come with embedded NFC chips that can be scanned with a smartphone to unlock exclusive content, like playlists by musician BFRND and a new mini-game that takes players through the brand’s iconic show sets. The game is accessible via a dedicated website, WeChat, or a touchscreen in select Balenciaga stores.
Regaining Momentum in Web3
Balenciaga began exploring Web3 in 2020. For instance, it released its Fall 2021 fashion collection as a video game called "Afterworld: The Age of Tomorrow," demonstrating the potential of virtual worlds for communication and storytelling. In September 2021, the brand partnered with Fortnite to offer a unique collection of digital and physical products, capturing the attention of both gamers and fashion enthusiasts during lockdown.
In 2023, Balenciaga's tech strategy is back on track, focusing on NFC technology. Through its Balenciaga Music line, the brand has been releasing items equipped with NFC chips. Though these chips aren't connected to the blockchain, they still exhibit Balenciaga’s commitment to merging digital infrastructure with the physical world. Future trends expert Anne-Liese Prem pointed out that this approach showcases Balenciaga's lead in connected fashion.
Engaging China's Metaverse
Balenciaga has also set its sights on China's complex Web3 landscape. Last week, the brand collaborated with Need for Speed mobile China to allow players to use Balenciaga-branded skins for cars and avatars, available only in mainland China from July 11. Previous attempts included localized virtual activations, such as releasing holiday-themed mini-games for China’s 520 shopping festival via their WeChat mini-programs.
Competition Heats Up
Globally, Web3 has seen luxury consumers becoming more open to emerging tech. Brands like Louis Vuitton and Gucci have already established strong digital communities. OTB Group's Diesel and Maison Margiela have tailored NFT projects to consumer interests. Fendi also released tech wearables alongside Ledger in 2022, targeting high-spending crypto enthusiasts.
Unique Strategy with AI and Gaming
Balenciaga is taking a different route to stand out. During Paris Fashion Week in February, the brand used artificial intelligence by displaying AI-generated images on LED screens at the historic Dome des Invalides, generating media buzz. However, it's their commitment to gaming that might set them apart. Collaborations with Fortnite and creative mini-games contribute to building a community of superfans who crave new experiences.
Conclusion
As Balenciaga continues to push boundaries in both the physical and digital worlds, their success in Web3 will depend on their ability to merge luxury with innovation. With their strategic focus on gaming and emerging technologies like NFC, they strive to create unique experiences for their customers and lead the way in the digital luxury landscape.
