Introduction:
In today’s rapidly evolving digital landscape, luxury brands are constantly seeking innovative ways to engage consumers and enhance brand experiences. Non-Fungible Tokens (NFTs) have emerged as a promising tool, offering unique opportunities for luxury brands to connect with their audience. In an exclusive interview, I spoke with Mert ONAY, the Director of Global Advertising & Social Media at Balmain Beauty, to delve into the potential of NFTs in the luxury industry. Here, Mert ONAY highlights three key strategies that can provide value and meaning to luxury NFTs, catering to consumer desires and leveraging the power of exclusivity.
Transcription of the Interview:
Question : According to you what are the potentials of NFTs in the luxury industry to engage an audience ?
Answer : I am always asking myself what’s in it for the consumer like why would they even buy it or why would they even want it if it was free ? Let’s say it has been designed by an ultra-famous person so you want to earn it. But what’s the next step for it?
There are actually three cases that give meaning to NFTs for luxury.
First one, which is the cheapest and most basic one, is called POAPs. It’s not a real NFT, but rather a digital token tied to a physical or virtual event, such as a concert, conference, or webinar. It grants the privilege of saying « I was there, » and can even be designed with additional benefits, such as discounts at stores. It’s a free-to-use concept that lacks the exclusivity of luxury brands. To make it relevant, luxury brands would need to collaborate with famous designers or establish a strong call to action.
The second case involves tying the NFT to a cause, as we’ve seen brands do during events like Pride Month or campaigns against abuse. By collaborating with experts in the field and creating an NFT that supports a cause, luxury brands can generate awareness, engage in PR activities, and offer consumers the opportunity to support the cause through their purchase. This approach works well today and has the potential to remain effective in the future. The key is to design a unique NFT with someone extraordinary at the helm.
Finally, the third strategy involves dropping NFTs into exclusive customer relationship management (CRM) systems. This approach extends benefits to privileged returning customers, granting them access to more exclusive perks than the NFT’s initial price may indicate. Fashion houses have also implemented similar concepts, such as their blockchain-powered platforms. Through this integration, customers gain unique advantages, like direct connections with designers, pre-access to collections, or limited edition products.
Conclusion :
To conclude, the emergence of NFTs presents the luxury industry with exciting prospects for consumer engagement. In fact, Mert ONAY, Director of Global Advertising & Social Media at Balmain Beauty, emphasizes the importance of designing unique NFTs that align with luxury brand values and consumer aspirations. From basic tokens tied to events, to NFTs associated with meaningful causes and exclusive CRM integrations, luxury brands have a range of strategies to explore. Hence, by leveraging the power of exclusivity and offering distinctive experiences, luxury NFTs can captivate consumers and redefine brand interactions in the digital era.