This week saw an unexpected twist in the journey of Gucci’s Material NFTs, as holders were offered the chance to exchange their tokens for physical Gucci merchandise. After months of speculation, Gucci announced that the owners of the 2,896 NFTs minted in March could swap them for a bifold wallet or a duffle bag branded Gucci x 10KTF. This revelation has bridged the gap between the virtual and physical, intertwining the realms of fashion and cryptocurrency in a novel way.
The redeeming facility was launched on the partner platform 10KTF.shop, a move that invites NFT holders into the Gucci fandom. A single Gucci Vault Material NFT is all it takes to get a wallet, while you need to part with three tokens to get your hands on the duffle.
The brand’s copywriting team has approached the concept with humor, dubbing the duffle as “baggage you’ll want to carry,” and humorously stating that the wallet does not necessitate a seed phrase.
A quick value comparison suggests the bag may be the more enticing option. The bag, though similar to a version on Gucci’s e-commerce site that retails for $1790, carries the added bonus of a 10KTF logo, giving it an exclusive ‘money can’t buy’ rarity. Meanwhile, the wallet, equivalent to a $460 item on Gucci’s site, seems to pale in comparison.
As of now, the Material NFT can be purchased on Opensea for around 0.22ETH, or roughly $412, making the bag offer a potential steal for those lucky enough to hold three tokens.
This innovative maneuver is set to be a game-changer in the luxury fashion industry, acting as a test case for other brands to perhaps follow suit. The move also blends traditional and digital value constructs, demonstrating the potential of NFTs beyond just digital art and the blockchain world.
Matt Maher, founder of technology consultancy M7 Innovations, praised the initiative. “The strategy here was smart because it bridges the digital divide and rewards holders with a physical product,” he explained. Maher, who has just redeemed his token for a Gucci wallet, believes this ‘play-to-earn’ or ‘engage-to-earn’ model is likely to become more prevalent in the future.
This innovative approach to NFTs will also cater to different demographics. “For Gucci loyalists, it’s another luxury product in their repertoire, one that was essentially free,” Maher said. “For Web3 degens, it acts as a ‘trial product’ to introduce them to the world of Gucci and create a gravitational pull towards the brand.”
While some may argue about the value and utility of the NFT rewards in a bearish market, Maher underlines, “Rewarding a community is never a bad idea.” Only time will tell if more luxury brands will adopt this intriguing blend of digital and physical rewards.
