NFTs
Games, AI, NFTs: will Balenciaga’s big Web3 ambitions pay off?
After a brief hiatus, Balenciaga is preparing to re-enter the non-fungible token (NFT) market.
The Kering-owned fashion house announced the launch of an exclusive hardware NFT wallet in collaboration with Web3 leader Ledger last month. The box, powered by near-field communication (NFC) technology, is designed to accommodate Ledger’s new Stax device – a gadget that allows owners to trade, exchange and manage their digital tokens and cryptocurrencies.
“The Balenciaga team always seems to be beyond the front lines, seeing into the future, where culture will be tomorrow,” Ian Rogers, chief experience officer at Ledger, told Jing Daily. “When they contacted us about a possible collaboration, we were immediately excited.”
The bag is comprised of soft, logo-embossed leather, alongside a spring-loaded, logo-engraved metal ring that can be attached to a bag, belt loop or keychain. It’s also customizable with a set of individual charms.
According to a statement from Balenciaga, it will be available to the public in October.
The news comes just days after Balenciaga launched its latest NFC-connected products under its subsidiary Balenciaga Music.
The capsule line, with 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 every Balenciaga show since 2017) and a new minigame concept that takes players through the iconic show the brand has set over the years.
The game can be accessed via a dedicated website, WeChat, or on a touchscreen in select Balenciaga stores.
The Balenciaga x Ledger Stax case features logo-embossed leather and customizable keychains. Image: Reason
Balenciaga has been slowly shrinking its Web3 portfolio since 2020; a time when many luxury brands adopted digital-first strategies to combat falling physical sales.
In December 2020, the brand launched 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 for metaverse and gaming platform Geeiq.
Then, in September 2021, the house teamed up with Fortnite on a collection of co-branded phygital products. It was the peak of launch, taking advantage of 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 went largely unnoticed, overshadowed by the widely documented moves of other luxury disruptors such as Louis Vuitton and Gucci.
This year, the maison’s technology roadmap is regaining momentum.
One area where Balenciaga is investing heavily is NFC technology.
Through its Balenciaga Music line – the label’s sonic side project first launched in 2020 – the brand has been consistently releasing physical products equipped with NFC chips since last year. When 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 identification enabler Web2 Eon), future trends and Web3 expert Anne-Liese Prem notes that the implementation of the technology still demonstrates Balenciaga’s commitment to bringing together the infrastructure digital with the physical world.
“Balenciaga has been leading the way towards connected fashion,” adds Prem.
Lynch agrees. While simplistic in its execution, he says, Balenciaga’s endorsement “reflects the way technology is being used to deliver elevated experiences in fashion that take it beyond physical clothing, connecting other artistic mediums and, in doing so, providing greater insight into their inspirations.” behind the brand.”
The fashion house has also expanded its ambitions to tackle China’s complex Web3 landscape to overtake competitors.
Last week, the brand announced a new collaboration with Need for Speed mobile China. Available only on the mainland from July 11, players can outfit their cars and avatars with Balenciaga-branded skins.
The brand has already capitalized on peak retail periods through super-localized virtual activations to engage digital natives. For China’s 2022 520 shopping festival, the fashion house launched two Christmas-themed mini-games through its WeChat mini-program, along with an NFT-powered avatar.
The same approach was taken for season 520 in 2023; this time introducing augmented reality into the mix.
Again accessed through the 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 farming and complete tasks to earn stickers, wallpapers and wish cards limited edition.
Web3 has witnessed a notable shift in perception globally, with luxury consumers becoming more receptive to emerging technology and its use cases. While wider adoption offers more possibilities for experimentation for brands, it also means expectations are higher.
And with almost every major luxury player launching a Web3-based project, impressing consumers is no easy task.
“What we’re seeing now is a much more measured approach,” says Prem.
LVMH competitor Louis Vuitton and Kering-owned Gucci, for example, have gained gold status in the digital world with their elite Web3 communities. Diesel and Maison Margiela from rival OTB Group have similarly launched their own NFT projects tailored to consumer interests.
In 2022, Fendi also launched its own selection of tech wearables alongside Ledger, targeting high-net-worth cryptocurrency enthusiasts.
With Balenciaga in danger of being left behind, the brand is taking a different path to cut through the noise; a change that Geeiq’s Lynch believes is on brand for the house. “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 took advantage of the current wave of artificial intelligence by plastering the historic Dome des Invalides in a deluge of LED screens, each displaying its own series of AI-generated images.
Despite the AI stunt generating widespread media attention, Prem argues that Balenciaga really shines through its commitment to gaming.
From the Fortnite collaboration to its evolving minigame playbook, Prem notes that gamification is an arena the brand should lean into further to keep the virtual wheels turning.
“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, breaking Web3 is the logical next step. Can a disruptor that has successfully fused luxury with innovation in the physical world achieve the same feat in the digital world?