NFTs and Digital Fashion
Gucci recently sold a digital version of its Dionysus bag on Roblox Corp.’s platform for about $4,115. That’s more than the price of the physical item. Kering SA stablemate Balenciaga presented its Fall 2021 collection within a playable video game. All the way back in 2019, LVMH Moët Hennessy Louis Vuitton SE released a capsule collection for Riot Games Inc.’s League of Legends. ￼ The virtual economy is “one of the greatest economic opportunities of our generation,” John Egan, CEO of L’Atelier BNP Paribas, said in an email interview.
These worlds might be virtual, but the money backing them is very real. In April, Epic announced a $1 billion funding round to support its “long-term vision for the metaverse,” while BNP Paribas expects in-game spending on items like digital clothes and character upgrades to grow to $129 billion in 2021 from $109 billion in 2019.
Bloomberg quicktake on what NFTs in fashion really are and why consumers are paying for them.