In 2021, Nike took its first leap into the cryptocurrency market by acquiring RTFKT, a digital fashion and 3D creation studio. The company has teamed up with RTFKT to launch its first virtual sneaker, the CryptoKicks NFT. In no time, Nike achieved the highest NFT sales revenue ever recorded, with $185.27 million in total. According to Dune Analytics, Nike earned $93.10 million from its NFTs primary sale and an additional $92.17 million from royalties. The CryptoKicks collection alone generated more than 67,250 transactions on the secondary market, with a secondary transaction volume of $1.29 billion.

How can Nike capitalise on the emerging trend of fashion NFTs?

1. NFT Customizability: Nike values personalisation to appeal to younger generation consumers seeking unique products. The CryptoKicks NFT collection enables holders to customise their virtual sneakers with 'skin vials' made by different designers. These vials vary in rarity and allow for thousands of unique combinations with just one pair of NFT shoes.

2. Augmented Reality (AR) Technology: What makes the RTFKT x Nike Dunk Genesis CryptoKicks special is that it can be visualised in the real world. Holders get a Snapchat filter to show off their sneakers in AR, though they cannot be worn in real life. Utilising AR technology, the RTFKT x Nike AR Hoodie can be worn by both CloneX avatars and real-life holders. The hoodie has an implanted NFC chip that allows wireless communication with digital assets. Holders can add AR effects like virtual wings to their hoodies through trackers and QR codes.

3. Metaverse Fashion: Nikeland, a virtual world powered by Roblox, allows Nike fans to engage with brand experiences, visit a digital showroom, and outfit their avatars with Nike products. Nike generates brand exposure by offering sneak peeks of upcoming products and inviting youngsters to participate in design collaborations. Additionally, it hosts digital events featuring its partner celebrities and athletes.

Nike's successful acquisition of RTFKT and the launch of CryptoKicks highlight the potential of blockchain technology and NFTs to transform the sneaker purchasing and collecting experience. The success of the project further showcases Nike's leadership in innovation and readiness to capitalise on the growing potential of blockchain technology and NFTs.

Project: https://rtfkt.com