Nike Kicking off with NFT Kicks.
Fashion is undoubtedly a huge cultural block. We identify ourselves with it and even feel tremendous by wearing something fabulous. Recently, sneakers have begun to show a strong presence in the fashion industry. With both retro and futuristic designs and by highlighting exclusivity, people have started to get hyped about sneakers. Nike decided to take one more leap to really dominate the sneaker and fashion industry.
CryptoKicks, or “the pairing of a non-fungible token with a physical shoe release” will basically revolutionize the fundamentals of marketing and sales (Tillman, 2021). Well, this is only the beginning. Using Ethereum blockchain, Nike expects to further utilize the technology to even let consumers “breed” shoes to their own taste (Fries, 2021). Through the online purchase of Nike sneakers, consumers will get digital representations of the products and have the access to play around with them. Basically, the number of new designs and the level of creativity will be limitless.
The biggest reason behind the idea of CryptoKicks is not to let users spread their wings of creativity through breeding nor bring a change in physical sales. It’s all about getting prepared for the metaverse (Redman, 2021). Metaverse, or simply a virtual environment, has become an another reality. Just a few years ago, when we thought of a virtual world, it was just a plain digital space where only limited movements and actions were allowed. Now, people spend hours a day in it. And it’s not just about spending more time; realism is added. Everyone can customize their avatars with digital items to create a distinctive identity. Nike knows people love its sneakers; therefore it logically wants them to go one more step and build their identities with Nike’s NFT kicks in the metaverse. This digital identity creation has become an unprecedented cultural phenomenon, and digital fashion is undeniably one of the easiest external identity creator.
Speaking of customization, people want something exclusive; something of their own. In the real world, we still can have something exclusive, but it requires too many actions and too much opportunity cost. We have to physically try out different items and often get to physical stores. Returning and changing items several items are also burdensome. Nike aims to get rid of such stressful process. Nike wishes their virtual sneakers to “give people even more exclusivity as they’ll own possibly the only digital version of limited edition products” (Sekhose, 2021).
Imagine having your own unique Nike Jordan or Cortez. Imagine showing off your unique Nike sneakers collection not just to your friends but to millions online. With Ethereum’s open-source blockchain technology, Nike seems to want everyone to feel special and fabulous not just in the real world but also in the virtual world. Oh, and congratulations to Nike as it will have a new-thick revenue stream.
Fries, T. (2021, May 25). Cryptokicks: Nike to tokenize shoe ownership on Ethereum. The Tokenist. Retrieved November 17, 2021, from https://tokenist.com/cryptokicks-nike-to-tokenize-shoe-ownership-on-ethereum/.
Redman, J. (2021, November 8). Athletic shoe giant Nike looks poised to tackle metaverse and nfts: Report. Bitcoin News. Retrieved November 18, 2021, from https://news.bitcoin.com/athletic-shoe-giant-nike-looks-poised-to-tackle-metaverse-and-nfts-report/.
Sekhose, M. (2021, November 3). Nike is planning to sell virtual sneakers as it prepares to ride the Metaverse Wave. Business Insider. Retrieved November 17, 2021, from https://www.businessinsider.in/tech/news/nike-to-soon-start-selling-virtual-sneakers-clothes-and-accessories/articleshow/87505392.cms.
Tillman, J. (2021, April 30). Is Nike about to bring “Sneaker breeding” Into the world? Boardroom. Retrieved November 17, 2021, from https://boardroom.tv/nike-cryptokicks-sneaker-offspring/.