Nfts
Gaming, AI, NFT: will Balenciaga’s big Web3 game pay off?
After a brief hiatus, Balenciaga is preparing to re-enter the non-fungible token (NFT) market.
The Kering-owned house announced last month the release of an exclusive NFT hardware wallet in collaboration with Web3 spearhead Ledger. The case, powered by near-field communication (NFC) technology, is designed to hold Ledger’s new Stax device, a gadget that allows owners to trade, exchange and manage their digital tokens and crypto- cash.
“The Balenciaga team always seems to be beyond the front lines, anticipating the future and the culture of tomorrow,” Ian Rogers, chief experience officer at Ledger, told Jing Daily. “When they contacted us about a potential collaboration, we were immediately excited.”
The pouch is made of soft leather with the embossed logo, as well as a logo-engraved spring-loaded metal ring that can be attached to a handbag, belt loop or keychain. It is also customizable with a set of individual charms.
According to Balenciaga’s press release, it will be made available to the public in October.
The news came just days after Balenciaga dropped its latest NFC connected product under its subsidiary Balenciaga Music.
The capsule line, made up of physical products embedded with NFC chips, can be scanned using a smartphone to access exclusive content, including playlists compiled by musician BFRND (the composer behind all Balenciaga shows since 2017) and a new mini-game concept that takes players through the brand’s iconic fashion show unfolding over the years.
The game is accessible via a dedicated site, WeChat, or on touch screen in certain Balenciaga stores.
The Balenciaga x Ledger Stax case features logo-embossed leather and customizable key rings. Image: Ledger
Balenciaga has been slowly reducing its Web3 portfolio since 2020; a time when many luxury brands have turned to digital-first strategies to combat falling physical sales.
In December 2020, the brand released its fall 2021 fashion collection in the form of a video game, called Afterworld: The Age of Tomorrow.
The project “demonstrated how virtual worlds can provide an infinite canvas for communication and storytelling,” says Barney Lynch, account director at Metaverse and gaming platform Geeiq.
Then, in September 2021, the house joined forces with Fortnite on a collection of co-branded phygital products. It was prime time for the launch, tapping into both the game’s fervent fan base and the tsunami of consumers who turned to gaming during lockdown.
Following its high-profile partnership with Fortnite, Balenciaga’s Web3 ambitions have gone largely unnoticed, overshadowed by the widely documented initiatives of other luxury disruptors, such as Louis Vuitton and Gucci.
This year, the house’s tech roadmap is gaining momentum.
Balenciaga is investing heavily in NFC technology.
Via its Balenciaga Music line – the label’s side project first introduced in 2020 – the brand has been regularly releasing physical products equipped with NFC chips since last year. Once scanned, the chip unlocks access to audio playlists exclusively curated by creative director Demna.
Although NFC tags are not connected to the blockchain (the technology is powered by digital ID enabler Web2 Eon), future trends and Web3 expert Anne-Liese Prem notes that the implementation of the technology demonstrates continues Balenciaga’s commitment to merging digital infrastructure with the physical world.
“Balenciaga has paved the way towards connected fashion,” adds Prem.
Lynch agrees. While simplistic in execution, he says, Balenciaga’s endorsement “reflects how technology is used to deliver elevated fashion experiences that push it beyond just physical clothing, connecting other artistic mediums and, in doing so, providing greater insight into their inspirations. behind the brand. »
The house has also broadened its ambitions by tackling the complex Web3 landscape in China to overtake its competitors.
Last week, the brand announced a new collaboration alongside Need for Speed mobile China. Available only on the continent from July 11, players can equip their cars and avatars with Balenciaga branded skins.
The brand has already capitalized on peak retail periods via ultra-localized virtual activations to engage digital natives. For China’s 520 shopping festival in 2022, the house launched two holiday-themed mini-games via its WeChat mini-program, alongside an NFT-powered avatar.
He took the same approach for the 520 season in 2023; this time, introducing augmented reality into the mix.
Once again accessible via its official WeChat channel, players entered a special virtual world as farmers wearing items from the new 520 collection, where they were encouraged to learn about regenerative agriculture and complete tasks to earn limited-edition stickers, wallpapers, and greeting cards.
Web3 has seen a notable shift in perception globally, with luxury consumers becoming more receptive to emerging technologies and their use cases. While wider adoption gives brands more opportunities to experiment, it also means higher expectations.
And with almost every major luxury player now having launched a Web3-infused project, impressing consumers is no easy task.
“What we’re seeing now is a much more measured approach,” says Prem.
Louis Vuitton, a competitor of LVMH, and Gucci, a subsidiary of Kering, have for example obtained benchmark status in the digital domain thanks to their elite Web3 communities. Diesel and Maison Margiela, subsidiaries of OTB Group, have also launched their own NFT projects tailored to consumer interests.
In 2022, Fendi also launched its own selection of tech wearables alongside Ledger, targeting crypto enthusiasts with high spending power.
While Balenciaga risks falling behind, the brand is taking a different route to stand out from the noise; a move that Geeiq’s Lynch says fits the house’s brand. “Balenciaga’s approach to gaming and Web3 has been, predictably, idiosyncratic,” says Lynch.
For example, during its FW24 collection at Paris Fashion Week in February, the house rode the current wave of artificial intelligence by covering the historic Dôme des Invalides with a deluge of LED screens, each broadcasting its own series of AI-generated images.
Despite AI garnering widespread media attention, Prem says where Balenciaga really shines is through its commitment to gaming.
From the Fortnite collaboration to its evolving mini-game playbook, Prem notes that gamification is an area the brand should lean more into to keep the virtual wheels spinning.
“It’s their way of building a strong community of superfan customers who constantly want to be surprised and inspired by new experiences,” she adds.
As Balenciaga continues to build a brand based on capturing, creating and challenging the zeitgeist, hacking Web3 is the next logical step. Can a disruptor who has successfully merged luxury and innovation in the physical world also achieve the same feat in the digital world?