Breaking down the success stories and shortcomings of creating clothes for Web3 collectors...
In today's edition of The Ground Floor we will be breaking down the success stories and shortcomings of Web3 companies creating clothing for their community members.
Can Web3 companies successfully create high quality physical products?
While Web3 companies primarily seek to service the needs of collectors by creating digital goods & digital experiences, many successful Web3 companies including BAYC, Doodles, RTFKT, Veefriends and Deadfellaz have also created clothing & merch for their collectors.
During the same period of time whereby Web3 brands are creating clothing for their collectors, we have also seen an influx of billion dollar clothing companies making moves into the Web3 world by offering tokens that are redeemable for physical products.
From Physical ~ Digital
In the physical world, the clothes we wear not only serve the need of keeping us warm — the clothes we wear also allow people to communicate status.
People communicate athleticism by wearing Nike, Adidas & lululemon.
People communicate wealth by wearing Louis Vuitton, Gucci & Prada.
With a growing group of consumers willing to spend thousands of dollars on digital assets for reasons related to status, some of the biggest brands that have successfully created physical status goods are making moves to create digital goods for these consumers.
To date, these billion dollar brands have primarily had positive results.
The Good & The Bad
As a token holder of RTFKT (owned by Nike) and the Adidas NFT, both companies have created high quality clothing, however, it's also clear that even these companies are having a hard time shipping products globally to their token holders.
Nike has made a small fortune since they acquired RTFKT in December 2021.
RTFKT has established itself as one of the top 10 NFT projects with a strong community of token holders that are willing to pay a premium for high quality products — with 5,400+ units sold of their most recent mint.
This sale alone provided Nike with 2587 ETH ~ $3,282,928 = $605 average purchase price.
Nonetheless, the RTFKT community was recently left disappointed when they were informed that this drop could not be shipped outside the United States.
Overall though, RTFKT & Nike has a great track with creating clothes for Web3 collectors.
Adidas, a competitor to Nike has also made investments in creating digital products that are redeemable for physical products.
As a recipient of the clothing the Adidas Web3 team created, here's my review:
The good: Very high quality merchandise.
The bad: The products took months to arrive.
Whereas many Web3 brands are creating supply chains for the first time, creating supply chains is something Adidas & Nike have mastered 10x over within their core businesses.
This is the primary reason to be critical of both these billion dollar clothing brands in Web3 to date, while the high quality products they have created is the reason they deserve praise.
Digital Goods ~ Physical Goods
These billion dollar clothing brands aren't the only companies seeking to create high quality clothing for Web3 collectors with many of the biggest Web3 brands such as BAYC & Doodles doing the same to generate revenue.
A Bored Ape Yacht Club is one of the most valuable NFTs in the world today.
With a floor price of $85,000 the 10,000 BAYC collection is valued at $850 million USD.
Earlier this year, BAYC provided each of its token holders with thousands of Ape Coin & shortly afterwards announced a merch drop that could only be purchased using Ape Coin.
Clothing was the core focus of this drop, and besides some hiccups with Coinbase Commerce that left a small number of customers frustrated — this clothing sale is a great example of how a company can create value for its token holders.
Truthfully, I haven't felt compelled to purchase any of Doodles has clothing to date.
Whereas RTFKT creates significant hype behind the clothing they create — Doodles merch is much more minimalistic.
Today, Doodles clothing isn't for anyone that isn't a big fan of the brand due to the high prices, however, many Doodles community members love the clothing Doodles created.
Outside of clothing, Doodles have done a great job with creating Doodles Posters & Doodles Collectible Figures for their community.
📡 Looking Forward
It looks likely that Web3 companies will continue to create clothing and other forms of merch to provide value to their token holders.
In its short history, the Web3 World has seen many poorly executed merch projects, however, the Web3 World continues to see an influx of established clothing brands & successful Web3 brands creating high quality clothing & merch drops.
As an NFT collector, this is undoubtedly a positive development, and I expect many Web3 collectors to directly benefit from this increased competition to create high quality physical products for Web3 collectors, as the Web3 World continues to improve.
✔️ The Lessons Learned
1) There remains much room for improvement for Web3 companies to create higher quality clothing for their community members at competitive prices.
2) Billion dollar clothing companies such as Adidas & Nike are both having a hard time shipping products around the world to their token holders.
1) Part 2: Last year, a group of Web3 collectors created a group with the goal of purchasing one of the original copies of the United States constitution.
The group is back again as a new copy of the constitution comes up for auction.
2) The Top Podcast: This week, The Floorcast interviewed Zeneca. I highly recommend listening to this conversation. 🔊
3) The BEST thread: If you only read one more thread on Twitter, make it this one.
I solved a 6 month old puzzle linked to @beeple 's "Politics is Bullshit" piece and received a edition from the man himself 🙏🙏🙏 (quick thread)
— radicalnotions.eth (@RadicalnotionsE)
Dec 14, 2022
P.S. What did you think of today's newsletter?
See you next time! — OB1 👋