Gucci, the fashion Goliath in lux fashion, shocked its clientele when it announced that as of May 2022, the brand would accept crypto payments in select locations.
According to Gucci’s announcement, the company launched a pilot project that will allow Gucci lovers to pay for their favorite high-end handbags with over Ten different cryptocurrencies like Bitcoin, Ethereum, or 5 USD-pegged stablecoins ( USDC, DAI, GUSD, USDP, and BUSD).
To the surprise of many, Gucci took the leap of faith and stepped into the new era of crypto – one of the latest crypto news that shook the world.
The reason behind the rather unexpected decision lies in the fact that around 27 million Americans own crypto.
As the world is rapidly moving forward and keeping up with the trends, it won’t startle us to see more fashion brands follow suit. This article shows what made Gucci turn to this decision and what they’re planning next.
What Made Gucci Turn Crypto-Friendly?
More and more people in the US are turning to cryptocurrencies for payments. According to one research, around 16% of the interviewees said they had invested in or used crypto.
The rising popularity of crypto made not only Gucci, but other major global corporations, too, adopt cryptocurrencies as payments of the future.
Due to the fact that more and more of the youth are perceived as influencers with massive followings, major fashion brands are focusing their campaigns on these buyer profiles.
The younger population is especially fond of crypto and looking for ways to use the currency – Gucci decided to be one of the spending destinations.
Setting Up the Foundation
As of May 2022, Gucci began accepting crypto payments only in distinct locations in the US, like Miami, New York, Atlanta, Vegas, and Los Angeles.
According to Gucci, the company will expand its crypto-welcoming stores to brand stores throughout North America during the summer.
Preparing to tap the uncharted yet lucrative waters of crypto, Gucci undertook a massive employee training program that provided workers with all the relevant info on crypto.
This way, the staff at Gucci is knowledgeable on how to handle cryptocurrencies and NFTs, and can confidently answer client inquiries regarding the new payment method.
Regarding how the payment method will be conveyed, the company stated that crypto payments in brick-and-mortar stores would include QR codes and/or NFC readers.
Gucci is confident the pilot will go smoothly because most smartphones are equipped with NFC software, which makes purchasing that much easier.
Crypto Is Not Gucci’s First Rodeo
The beloved fashion brand of many is not a rookie player in the world of digital assets. The fashion giant has been slowly making its way into the Metaverse for a while now.
In 2021, Gucci made a bold move and invested in digital real estate on The Sandbox – a blockchain network. Gucci aimed to transition more smoothly into the digital-first era by already owning virtual property.
After becoming the owner of digital property, Gucci continued its digital enhancement by creating the Gucci Vault – a virtual store that would sell digital assets and actual retro apparel.
With no intention of stopping, Gucci went on and launched its first-ever NFT – a video film as a tribute to Gucci’s Aria collection. Auction house Christie’s then sold the film for a stunning sum of $25,000.
Wanting to further expand its presence in the Metaverse, Gucci struck a collaboration with Superplastic – a digital vinyl toys designer, and created a line of virtual collectibles.
The Future of Lux Fashion Is With the Youth
Considering the ever-growing number of Millenials and Gen Z that are becoming it crowd on the worldwide scene, major corporations and industry giants are tweaking their business plans and marketing campaigns to appeal to these exact audiences.
These target groups are the trendsetters of today – whichever product they endorse becomes an instant hit.
Gucci’s management team is aware of youngsters’ habits today, so they wanted to appeal to these audiences in order not to de-evolve into a brick-and-mortar store only. By incorporating cryptocurrencies into its business plan, Gucci took the leap of faith. And seeing the rising interest in the cyber audience, this hasn’t been in vain.
Takeaway
Although Gucci is not the pioneer in the crypto realm, it is the first-ever luxury fashion brand to accept payments in cryptocurrencies. This brand paved the way for digital transactions for all other companies.
Understanding how the world works today, Gucci had to make alterations to its business models and employ a more millennial-friendly approach to payment methods.
Today more than ever, everyone that owns a cryptocurrency in the US, be it Bitcoin, Ethereum, or any of the other types of crypto available, can purchase a Gucci item and easily pay for it with digital currency.
