NFTs become physical experiences as brands offer in-store minting

Nonfungible tokens (NFTs) have taken the world by storm in the past year. Digital collectibles characterized solely as CryptoKitties in 2017 have since evolved into famous works of art, digitized music, high-end fashion for the Metaverse, and a way for communities to connect with others around the world.

Even with the current crypto bear market, recent findings from research firm Security.org show that NFT ownership has doubled in the past year, from an estimated 4.6 million people to 9.3 million people. The report also found that while the vast majority of Americans are not ready to buy NFTs, about 16.3 million potential customers are likely to buy non-replaceable tokens in the next 12 months.

Consumers experience NFTs with IR mints

Given the potential of NFTs, it should come as no surprise that a handful of retailers and brands are starting to include non-replaceable tokens in their product offerings. While this has been proven by brands bridging physical goods to digital NFTs, a handful of retailers are now integrating NFT technology into brick-and-mortar retail locations.

This was recently demonstrated by the luxury Italian brand Salvatore Ferragamo. Ferragamo’s new concept store opened on June 24, 2022 in New York’s Soho borough, the day after NFT NYC closed. From the outside, the Ferragamo store at 63 Greene Street may look plain, but once consumers move in, they can experience Web3 first-hand through immersive store features.

Daniella Vitale, CEO of Ferragamo North America, told Cointelegraph during a store preview that the Soho location combines technology with the world of luxury by including an NFT rig alongside a custom hologram sneaker program. She said:

“Everyone is always talking about NFTs, so we wanted to bring a real experience to the Soho store that would allow people to create their own NFTs. We hope to acquire new customers who are well versed in Web3, but it is also about making our existing customers are going to be part of this world, I think this is going to be a great success.”

Vitale added that Ferragamo’s NFT installation — which was created in collaboration with digital artist Shxpir (pronounced English poet and playwright Shakespeare) — is the first of its kind, noting that no other Ferragamo store has such a feature. contains.

“We didn’t want our Soho store to be so static — we wanted it to have a technology angle. The NFT booth was integrated directly into the store design to encompass the entire shopping experience,” she said. Vitale added that she hopes these immersive features will enable customers to learn more about Web3 technology rather than being intimidated by the emerging industry.

To ensure this, a representative of the multidisciplinary studio De-Yan – who worked with Ferragamo on the installations and helped with immersive projects for Louis Vuitton and Dior – told Cointelegraph that minting a Ferragamo NFT costs customers nothing.

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“This will be the first NFT for many people, so Ferragamo will pay all Ether gas fees on transfers.” In addition, he noted that representatives will be available to assist customers throughout the coining process. He further shared that the NFT installation is underway, but that the store is limiting the inaugural collection to 256 NFTs. “There are 972 possible combinations that the NFTs can handle, but only 256 can be beaten at the moment,” he said.

As for the actual coining process, he explained that the experience is completely immersive, noting that the NFT setup is enclosed in a mirrored space to ensure customers get a 360-degree view of the NFT they are creating.

“Customers can customize their NFT and then film a video with that NFT and then share it on social media,” he said. After the coin, customers will receive a claim email asking for their wallet address. “The NFT will then be sent to their Ethereum address and will appear in their OpenSea account a day or so later,” he explained.

While Ferragamo may be one of the first luxury fashion brands to offer NFT Coins in-store, Web3 media and entertainment brand Doodles provided a similar feature to its community. Doodles set up an outside house during NFT NYC 2022 to give fans and community members the chance to create the latest NFT drop, view Doodles’ artwork and purchase exclusive merchandise such as sweatshirts and t-shirts. Julian Holguin, chief operating officer at Doodles, told Cointelegraph that the goal of the Doodles house was to take the brand to the next level by letting people experience everything in real life. He said:

“We just announced the pre-sale for our second NFT drop, which is happening here. People are here to physically punch a ‘Genesis Box’, a crate of wearables that will be the next level of rarity. Today people can buy a wearable for a fixed price to reserve their spot for this coin.”

To date, the Doodles NFT project has generated approximately $500 million in secondary sales since its launch in October 2021. With more than 6,000 Doodles owners, Holguin explained that the coin experience should be “fun and joyful,” noting that this is what the brand stands for. “I believe that when people can touch and feel things, it evokes an emotional response. They can then experience those emotions online,” he says.

Like the Ferragamo NFT installation, the Doodles House in NFT NYC hosted a machine where guests could save their Genesis Box NFT reservation. Upon completion, a gold card resembling a credit card was deposited from the vending machine for guests to take as a memento. Users had to pay the gas fee, which cost about $127 dollars and could be purchased with a credit card.

The Importance of Bringing NFTs to Life

For example, John Crain, co-founder and CEO of SuperRare – a digital art marketplace launched in 2018 – told Cointelegraph that having a physical art gallery associated with NFTs presents a great opportunity for both crypto residents and the crypto-curious to experience NFTs. With this in mind, SuperRare opened its first physical art gallery in May of this year, which is also located in New York’s Soho neighborhood. cran said:

“I think people are seeing the headlines about celebrities buying Bored Apes, which is exciting, but at the same time, there’s a cultural renaissance going on where independent artists are empowered by this technology. It’s hard to see this, that’s why it’s important to have a physical gallery where the community can experience the art first hand, while also meeting the artists and curators.”

Crain shared that the SuperRare gallery in Soho will be open until the end of August, with the option to expand or expand to other cities. “We host several exhibitions every two weeks, which is a great way to promote community building while adding deeper context to the art on display. This is hard to get with a purely digital experience,” he noted.

The De-Yan representative added that he believes the mix of technology and customization will be important for the retail sector in the future. He said:

“Ferragamo has opted for a certain approach that we believe is a good start. I wouldn’t be surprised if we saw other brands follow suit. That’s the cool thing about the NFT space – right now everyone thinks of NFTs as photos or videos, but there’s a whole physical and application layer.”

While bringing digital NFTs to life in physical spaces could be revolutionary, it’s also important to point out challenges that could hinder adoption. While in-store mints can be fun and interactive, users who are new to the crypto world may still find it difficult, especially those of older generations.

According to Security.org’s findings, individuals between the ages of 25 and 34 were more likely to purchase NFTs in the next 12 months compared to older or younger generations. The survey also found that men will be slightly more interested than women in buying NFTs over the next year.

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Because of this, fashion brands such as Ferragamo may struggle to get customers to acquire NFTs. To avoid this, the De-Yan rep explained that Ferragamo is sharing instructions on how people can get started with NFTs. “MetaMask is probably the easiest way. Ferragamo also initiates the transfer, so all a customer needs is a wallet address,” he said.

Indeed, the fact that Ferragamo pays for gas fees is appealing, as Security.org also found that the primary problem with NFTs is the high costs associated with minting coins. Therefore, Vitale noted that the current crypto bear market is unlikely to stop clients from making Ferragamo NFTs. “Paying gas bills is an important gesture, especially at times like these,” she said.