As I’m writing, I went through my favorite newsletter for inspiration and bumped into the raise of exclusivity strategies. My attention is caught when I see the headline “Prada joins other top luxury brands in the Web 3 movement”. Luxury brands are making their way into web3 using marketing strategies that anchor on NFTs and Metaverse. And it’s not just fashion.
Brands across all types of industries are recognizing the power of NFTs to create VIP experiences, bringing a whole new era of luxury and exclusivity strategies. After all, feeling special and privileged is a fundamental human desire. ‘Limited editions’ and ‘membership privileges’ are just the tip of the iceberg.
Now, let’s take a moment to understand the roots of exclusivity marketing and then we will look and analyze some examples in Web3, so you too can get inspired!
The principle of Exclusivity Strategies
We all want what we can’t have. I still remember the first time I was left out of an only girls “secret club” at elementary school. I felt like I was missing something so unique and important since I was not a part of those 30-minute conversations they had at lunch. It was probably the first time I ever felt FOMO (fear of missing out).
A great portion of marketing actions aims at the great masses, with the premise to reach newer and bigger audiences that have not yet interacted with the brand, and to increase the leads as quickly as possible. Exclusivity strategies are exactly the opposite.
After all, if something is exclusive it implies that not everyone can have it. Just like supply and demand, the principle of scarcity says that the rarer or more inaccessible something is, the more valuable it becomes. This arouses curiosity and a sense of urgency, producing psychological rewards such as a feeling of importance and belonging.
This is a powerful psychological phenomenon that is also heavily used by the luxury industry.
Luxury is rooted in Exclusivity
Luxury goods are now easier to access than ever. Think about it. You can see fashion shows and buy major brands online. That’s why VIP irreproducible experiences are surging, to fulfill this desire humans have for the exclusive.
NFTs trigger some of the major measures luxury customers seek:
- Authenticity
- Rarity
- Exclusivity
The blockchain also offers a reinvented proximity between the customer and the brand, by eliminating the intermediaries between the sender and receiver of an NFT.
In the book called ‘Future Luxe: What’s Ahead for the Business of Luxury’ by Erwan Rambourg, the author quotes “The utility of luxury consumption ranges from fitting into society, to simply feeling happy, empowered, or complete. That is potent. That has value. That is a big part of the reason luxury brands become legendary. It is not just that they were created long ago. That helps for storytelling and marketing purposes.”
Being a part of a unique community and experience makes customers feel empowered and complete. This is the value brands are looking for along these new Web 3 marketing strategies.
How to communicate Exclusivity in your Web 3 marketing strategy
Now, let’s dive deep into how brands are applying the principles we talked about so far to create disruptive and engaging campaigns.
Limited editions
Offering a limited item generates a sense of urgency and scarcity. Take for example Hennessy’s first-ever NFT, which was a record-breaking sale for BlockBar.
The collection consisted of both digital and physical assets, of the first and last bottles of a limited-edition Hennessy 8 Cognac. Sold for 66.49 ETH ($226,450 USD) the NFT also included a commemorative sculpture, an engraved Baccarat-blown carafe, a pipette, cork holder, chest, and an authentication plate.
With a unique and ephemeral opportunity, the customer tends to see the purchase as an even more satisfying investment.
Belonging
What can generate a greater sense of exclusivity than an invitation to a restricted event? The feeling of belonging you get when your loyalty is being rewarded with this unique perk.
That’s probably what Dolce & Gabbana had in mind when they launched its Collezione Genesi. This 9-piece collection was personally designed by Domenico Dolce and Stefano Gabbana exclusively for the platform UNXD. It features entirely hand-made items for Alta Moda (women), Alta Sartoria (men), and Alta Gioielleria (high jewelry).
The holders of these NFTs received not only the digital item, but also the physical garments and a privileged and exclusive access to Dolce & Gabbana brand events. The NFTs read “The winner of this item will receive access to the ultra-exclusive gold tier of the forthcoming #DGFamily NFT community, becoming one of the first people in the world to do so.”
Invitations to VIP events
The Paris Fashion Week 2021 event organized by the Fédération de la Haute Couture et de la Mode is a very good example of how to merge digital and physical in a unique and experiential way. All guests had an NFT QR code which included the following assets:
- the pass to participate in the event
- a signed artistic creation by Richard Haines
Both assets could also be experienced in augmented reality. This means that any accredited members could project the digital assets IRL as they pleased.
Another additional benefit was that instead of sharing their personal data at the entrance gate, guests could just prove their ownership of the NFT to access all Fashion Week events.
Authenticity
The blockchain also provides a great scenario for authenticity. Luxury items, for being exclusive, need to have origin proof. And that’s exactly why LVMH has joined forces with two other major luxury names to develop the authentication platform AURA.
AURA provides information on products from design to distribution, effectively providing traceability, which is crucial for protecting brands and customers against counterfeit goods. Brands can also choose the information that they want to feature on the certificates, allowing labels to highlight the origin of their raw materials, for example, at a time when social and environmental responsibility is a top priority.
Rarity
Can you imagine being the single owner of a very rare item? Not only that but an item that was carefully designed to be the first and the last of its kind.
That’s exactly what the famous luxury cars brand Lamborghini has accomplished with its drop of an NFT with the very last Aventador LP 780-4 Ultimae Coupè ever produced. This will be a collaboration of Lamborghini, DJ Steve Aoki, artist and innovator Krista Kim and INVNT group, to be offered in an online auction hosted by no other than RM Sotheby’s.
Stephan Winkelmann, Chairman, and CEO of Automobili Lamborghini explains in the official press release that “Lamborghini and the NFT community fit together very well, as we share many values. We are both young-spirited innovators, looking out for unexpected projects and technological solutions.”
The company also claims that “the drop is the world’s first NFT ever to be auctioned with a physical super sports car.” Talk about a rare item!
Back to Prada…
Since I started this article quoting Prada, it is only fair to also mention this recent NFT drop. Prada Timecapsule NFT Collection is a monthly online event on the first Thursday of each month. For 24 hours, an exclusive item that forms part of this collection is made available. Each limited edition Timecapsule item is associated with a unique serial number and comes with customized packaging.
Created in collaboration with Cassius Hirst, the Prada Timecapsule drop #30 features a once-off unique technical fabric shirt. Prada has also launched a new community server on Discord, Prada Crypted. The server is open to anyone who wants to join.
Conclusion
What we are seeing is the rise of a new era for luxury brands, where loyalty can be rewarded in disruptive, impactful, and meaningful ways for the customers. NFTs are unlocking VIP experiences, memberships, and so much more through exclusivity marketing campaigns, set on Web 3 possibilities.
The key for brands that want to participate in this exclusivity market is to take advantage of today’s possibilities within Web 3 and to lead innovation in the space through creativity and customized experiences.
We are sure to see more of these projects as NFTs move even closer toward mass adoption.
