Gucci to Start Accepting Payments in Cryptocurrencies

Gucci, a leading fashion brand, is planning to accept Bitcoin in some of its stores in the US as a part of its more extensive pilot program to accept crypto across entire North America this summer. Gucci stores will accept various cryptocurrencies, including Bitcoin, Ethereum, Bitcoin Cash, Dogecoin, Litecoin, and Shiba Inu. Customers can scan a QR code with their crypto wallet to make payments. The first Gucci stores that will be doing this are Wooster Street in New York, Design District in Miami, The Shops at Crystals in Las Vegas, and Phillips Plaza in Atlanta. Gucci has been taking progressive steps to move to Web 3.0 and enter the metaverse. In February 2022, Gucci bought a virtual land in Sandbox, a blockchain game. Gucci plans to create virtual-themed experiences on the Sandbox inspired by the Gucci Vault platform. With Gucci entering Metaverse, Sandbox players can purchase and wear Gucci products in the game’s virtual reality. 

To prepare for its entry into the crypto world, fashion leader Gucci plans to provide its staff with the necessary training and education about NFTs and cryptocurrencies before the program rolls out. Kering, Gucci’s parent company, has collaborated with the creative agency called Al Dente to develop an in-house game to educate and train its employees about Web 3.0 and NFTs. This attempt to embrace new technologies demonstrates Gucci’s commitment to providing an enhanced customer experience to the new generation of shoppers intrigued by the crypto world. Gucci is not the only fashion brand that is arming up to take on the crypto world. Other leading brands like Dolce & Gabbana, Nike, Adidas, Balenciaga, and Vans are similarly making advances in the metaverse. These leading brands have been exploring blockchain and crypto for quite some time, but Gucci is taking innovation to a whole new level by accepting payments in crypto. By launching this program, Gucci has become one of the early adopters of cryptocurrencies, signaling to fans its commitment to new technologies. 

Gucci’s Own NFTs 

In early 2022, Gucci partnered with Superplastic, a digital character brand, to launch its own SuperGucci NFT (non-fungible token) collections. In collaboration with Superplastic, Alessandro Michele, Head of Design at Gucci, has created the SuperGucci NFT collection. Gucci will release a total of 250 NFTs on three different occasions (the first one dropped on February 1, 2022). The digital collectible comes with a ceramic sculpture crafted by Gucci ceramic workers in Italy. 

On the first day of SuperGucci's launch, Gucci promoted its digital vault, a creative vault that showcases the historical Gucci collection. Gucci’s digital vault combines historical tradition/beauty with innovation and technology. Vintage Gucci items will sell on the vault as NFTs. The vault experience itself functions as a “time machine, meeting, library, archive or a laboratory.” The collection on the digital vault consists of vintage collections from famous designers like Alessandro Michele, along with newer collections from fresh talent like Ahluwalia, Bianca Saunders, and Collina Strada. The vault showcases Gucci accessories, glasses, and clothes from the 1960s to the 1990s. The digital vault provides shoppers a unique shopping experience that taps into their nostalgia and is beyond transactional. 

The digital vault was not the first time Gucci experimented with NFTs and digital collectibles. Earlier in 2021, Gucci sold its Gucci Aria NFT for $25,000 at Christie’s auction. It was one of the most expensive items the luxury brand has sold. A recent report by Morgan Stanley estimates that luxury brands can add 10% to their revenue by 2030 through their NFTs and digital stores. Since digital collectibles do not need high manufacturing costs, the profits can increase by up to 25%. 

Gucci is Not Alone in the Metaverse

Recently, another luxury retailer Off-White announced that it would be accepting cryptocurrencies in its stores in Milan, Paris, and London. The acceptable cryptocurrencies include Bitcoin, Binance Coin, Ethereum, USD Coin, Tether, and  Ripple. The only difference between Gucci and Off-White’s approach to adopting crypto payments is their return policies. While Off-White will provide returns in the form of store credit in the local currency, Gucci will process returns in cryptocurrency. In August 2021,  high-fashion luxury brand Philipp Plein became the first to start accepting payments in cryptocurrencies. It completes at least one crypto transaction every day and has already collected 150 bitcoins (worth $5.8 million). Currently, it is trying to build a store in London that also has an NFT gallery, besides accepting crypto payments. The store will allow customers to upgrade their purchases with matching wearable NFT from Decentraland. 

Metaverse is not just the place for big brands. Newer digital designers like DRESSX, Blanksoles, Digitalax, and RFTKT are dominating the metaverse fashion world. These crypto-native designers are specialized in making digital artwork, including dresses and accessories, for the metaverse. Besides that, traditional leading brands like Nike and Vans have acquired permanent virtual lands on Roblox where customers can buy their favorite shoes and dress their avatars in them. Balenciaga partnered with the game Fortnite to allow gamers to choose from their collection of game outfits. 

Leading fashion house Louis Vuitton launched its own metaverse-influenced NFT game called “Louis The Game.” The game features a number of digital collectibles and NFTs designed by the famous digital creator Beeple. As gamers progress levels, they get a chance to win these collectibles. These NFTs are expected to have significant value in the NFT market. 

The Bottom Line 

As we discussed above, Gucci and many other leading brands have become early adopters of NFTs, metaverse, and Web 3.0 technologies. They are building their own brand presence in the metaverse - rapidly growing to attract tech-savvy, crypto-friendly enthusiasts. With more and more major brands experimenting with crypto, NFTs, and metaverse assets, common people are increasingly interested in these technologies. Since these major brands have a high reach with millions of fans and followers, they can become potential drivers of mainstream crypto adoption. The time is not far when crypto and digital assets become household names.

Author Bio

Ian Kane is the Co-Founder at Unbanked, a global fin-tech platform built on blockchain. Kane has worked in technology & digital media for over 10 years with a heavy focus on business development, sales, and strategy. His diverse professional background enables him to bring unique insight and experience to every challenge he takes on.