Linking Merchandise and the Metaverse

While there are a number of different potential objectives for marketers to step into the metaverse, one hope is often to use the effort to help drive purchases of traditional physical products. A growing number of brands, especially in the fashion industry, are experimenting with new ways to strengthen the link between digital and physical purchases, as illustrated by these initiatives announced in the last two months:

  • European luxury luggage brand Rimowa paired with Nike-owned metaverse studio RTFKT for an outerspace-themed digital effort. The partnership began with an interactive campaign where the crypto community could solve challenges to enable them to mint limited-edition NFTs, with a total of 888 NFTs of Rimowa’s Original Cabin suitcase offered. Owners could then participate in an exclusive event where they could redeem their NFT assets for a physical version of the digital suitcase. Digital collectibles—2,222 robots—and digital wearables for the user’s avatar were also included as part of the initiative.
  • Jewelry and lifestyle brand Ambush paired with NFT studio Azuki for PBTs or “physical backed tokens,” which connect ownership of physical items to their digital twins on the blockchain as a means of authentication. (NFTs are separate from their physical counterparts, while PBTs are linked and a proxy for the physical items.) The partnership focuses on nine 24K gold-plated skateboards, as well as a collection of hoodies and pendants in two styles each.
  • Ralph Lauren paired with Fortnite for a two-outfit, 1990s-style capsule that was issued first digitally and then physically on the Ralph Lauren website three days later. A Twitch livestream event to introduce the collection, with appearances by rappers, e-sports stars, and streamers; a co-hosted Fortnite tournament; and a redesigned logo were also part of the mix.
  • Wrangler collaborated with the Deadfellaz NFT project, along with metaverse platform LTD INC., for a physical and digital denim collection as well as an interactive comic strip where the Deadfellaz community (The Horde) determined the outcome of the story. The garments consisted of 20 NFC-infused vintage jeans; these allow consumers to scan an NFC (near field communication) tag to check on the item’s authenticity. The pieces featured Deadfellaz artwork and gave the owner the ability to link to an NFT of the final version of the comic strip. More merchandise drops are under consideration.
  • Luxury luggage and bag brand Bugatti paired with Bored Ape Yacht Club for its first NFT project. Consumers who purchased the NFTs on the Bugatti Group website received a mint pass giving them access to exclusive physical releases not offered to the public. The items included eco-friendly cross-body bags, duffle bags, backpacks, and luggage made using post-consumer plastic bottles and apple- and cactus-based leathers. The luggage is unique in that a different Bored Ape is printed on each bag.
  • Burberry partnered with Minecraft for a collection of high-end limited-edition clothing items, including scarves, a bucket hat, sweatpants, a trench coat, and a $1,000 hoodie. The pieces combined Burberry patterns and Minecraft graphics. There was also downloadable content consisting of a game and several free skins that mirrored the real-life collection. Fans who donate to Conservation International through the end of the year receive five more digital accessories, including a backpack, cap, and sunglasses.

Pairing physical and digital products is not only a way to use NFT projects to spur licensed merchandise sales, at least on a limited scope, but it can also be an incentive to purchase NFTs. Scalefast’s Revealing the Metaverse Report, conducted with YouGov, found that 25% of consumers who would consider purchasing an NFT and 30% of those who would consider purchasing a virtual good could be convinced to do so if that purchase came with a physical product.

While a lot has been written about the collapse of the NFT market in 2022, with trading volumes plummeting, the impact of the decline is mostly on collectors who are looking to make money from buying and selling NFTs. NFT projects launched by licensors, licensees, and other marketers are not typically tied to the value of the NFTs, although rare, collectible NFTs can be one component. Rather, these programs are most often designed to enhance fan engagement. Linking NFTs and other metaverse elements to exclusive, limited physical merchandise is increasingly part of that strategy.

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