Gucci is moving deeper into the world of Web3 with the announcement of a partnership with Yuga Labs better known for its Bored Yacht Club non-fungible tokens (NFTs).
The deal will mark the start of a new frontier which will “explore the intersection between fashion and entertainment in the metaverse,” the Italian luxury fashion house said.
The Holy Grail of Fashion
“We are excited to unveil this multifaceted partnership with Yuga Labs, a leader and creative pioneer in Web3,” Robert Triefus, Gucci’s head of metaverse projects said.
Gucci launched the Gucci Grail project with Yuga Labs last year. Gucci teamed up with “digital artisan” Wagmi-san to design accessories and clothing which can be used to personalize NFTs.
The partnership will also extend to Otherside, the Bored Ape-themes virtual world and game.
Gucci’s long term plan is to build Web3 communities which, it believes, will foster more customer loyalty and produce more revenue for the fashion giant.
“We look forward to showing how this partnership extends to endless opportunities among others,” said Michael Figge, chief creative officer of Yuga Labs.
Gucci is one of a number of fashion houses testing the Web3 waters. Brands are learning that they can grow their customer base by using NFTs to lure in young buyers.
The 10KTF collection accounted for 74% of trading volumes of NFT fashion items in the first quarter of this year. Yuga Labs acquired the 10KTF collection last November when it bought NFT creator WENEW. Michael Figge and NFT artiste Beeple, otherwise known as Mike Winkelman, founded the firm in 2021. Figge moved to Yuga Labs as part of the deal.
This year, investors have pumped $502 million into Web3 gaming and metaverse projects. While down from $7.6 billion, it is still significant given the recent souring of investor sentiment towards the crypto industry.
The metaverse presents fashion houses with a lower cost of goods and allows them to use existing designs.
Morgan Stanley says the digital fashion industry will be worth $50 billion by 2030.
