Luxury department store Harvey Nichols recently announced the opening of the first blue-chip non-fungible token (NFT) retail space at its Pacific Place Hong Kong store. The innovative concept named ‘HN NFT Vault’, invites customers to browse and purchase digital art NFTs from a curated selection of globally recognised projects. The collection includes NFTs from top projects such as Bored Ape Yacht Club, CryptoPunks, CloneX x Takashi Murakami, Azuki and Doodles. The majority of NFTs are
are exclusively available for purchase at the HN NFT Vault only, in line with Harvey Nichols approach and reputation of sourcing the most desirable and cutting-edge designer brands since it opened in 1831.
As our physical and digital worlds collide, the luxury retailer aims to make NFTs more accessible to a broader audience. The new retail space caters to first time buyers and NFT experts, with prices ranging from HK$5,000 ($850 AUD) to over HK$1,000,000 ($170,000 AUD). Customers are able to purchase NFTs using both cryptocurrency and credit cards, ensuring the experience is seamless and simple.
Safeguarding valuable physical belongings is something we’re very familiar with. The same goes for digital assets such as cryptocurrency and NFTs. Each digital asset sold through HN NFT Vault can be purchased with a cold wallet. A small gadget that looks like a USB stick, which acts as a digital wallet not connected to the internet, making it a more secure way of protecting valuable digital assets and reduces the threat of crypto theft and fraud.
In addition to providing a cold wallet to protect prized NFTs, HN NFT Vault will offer customers and other collectors the ability to create and purchase apparel based on their NFTs, and bring their digital art pieces to life. While the NFT space is growing exponentially, use of digital assets in virtual environments is still in its infancy.
Recently, Twitter introduced a function for NFT owners to link their cryptowallet to their Twitter account and change the profile picture to an NFT avatar. There are reports Meta will be following close behind, in an effort to push NFTs into mainstream social media platforms. As a result, there’s been an increase in profile picture (PFP) NFT projects. Collections such as World of Women, Crypto Coven, DeadFellaz, Meta Angels and Mutant Ape Yacht Club have taken the NFT world by storm.
Physical stores are seeking to understand their place in the digital economy and align with this cultural phenomenon. A move of this magnitude by a luxury department store signals a shift in consumer behaviour and an investment into selling a different kind of luxury category: one that is largely driven by hype, demand and community engagement.
Another aspect to acquiring digital assets is trading NFTs on primary and secondary marketplaces. As such, Harvey Nichols will launch a service allowing NFT owners to showcase and sell their NFTs through the HN NFT Vault. Only NFTs from select reputable projects will be accepted and first vetted by Harvey Nichols before being showcased at the space for sale.
Creative industries adapt
In the traditional art space, some galleries have started showcasing NFT art as well as providing artist representation services, assisting them to create NFTs and promote to the gallery’s existing customer base, tapping into an already established art-enthusiast community. In return, the gallery receives a small recurring piece of the royalty pie.
While digital art has been the biggest focus in NFTs, the music industry is going through significant change also. Earlier this year, Snoop Dogg bought Death Row Records, the record label who originally signed him in the 90s. Shortly after taking over, Snoop Dogg announced plans to incorporate NFTs and other technologies into the business.
Australian music NFT startup Ocean Floor Music is creating a platform for musicians, artists and industry to fund and product projects collaboratively, and then trade products and services in their NFT marketplace. An ecosystem built entirely for music that supports everyone involved.
These new technologies are disrupting traditional pathways to market for creators, and similar to existing methods provide spin off revenue streams such as trading and merchandise.
Entering the NFT merch era
The NFT boom no doubt boggles many people’s minds. But for millions who collect these expensive JPEG tokens, they practically live and interact in Discord and Twitter communities. The movement and connection resonates deeply and provides an opportunity to be part of an NFT project’s future and possible success.
As NFT projects rise up and down the ranks, there are a handful who have broadened their offering to physical products. Streetwear brand The Hundreds collaborated with NFT collection DeadFellaz on a line of merchandise in January this year. The sold out range included hoodies, t-shirts, hats and tote bags. The merch represented a status symbol of its own kind in the NFT world.
Ownership of NFT merchandise is similar to that of a band tee you hold on to for years. Its very existence is a heartwarming reminder of music you love, the gigs you attended and the sticky floors you stood on. At the core, it’s a group of people supporting artists and buying their wares.
The new Harvey Nichols retail strategy to sell blue-chip NFTs, produce physical products from NFTs and provide NFT services is not to be underestimated. It is a wildly clever move for a department store to keep pace with technology that is powering the creator economy.
It starts to blur the lines even further between physical and digital, pushing businesses to redefine the purpose of a department store, an art gallery and an open space. As popular culture permeates through every possible channel, a common place for all these threads to meet is retail. Have you considered your crypto business strategy yet?