Nike is now Metaverse-ready
January 7, 2022
In December 2021, Nike, Inc announced the purchase of RTFKT, a pioneering company in metaverse industry that leverages cutting edge innovation to deliver next generation collectibles that merge contemporary culture and gaming.
To understand the drive behind Nike’s recent acquisition of RTFKT, it is worthwhile to first understand how RTFKT became so relevant in the world of street-fashion in such short period of time.
In January 2020, RTFKT was established by three friends and the platform uses the latest in game engines, NFT, blockchain authentication and augmented reality to create one of a kind sneakers and digital artifacts.
RTFKT first made major headlines in the fashion industry for its record-breaking NFT release of virtual sneakers with digital artist Fewocious, which sold over $3.1 million worth of product in seven minutes. The platform has also grown into a broader metaverse company when it released a series of digital avatars designed with the renowned Japanese artist Takashi Murakami.
According to John Donahoe, president and CEO of Nike Inc, the acquisition of RTFKT is another step that accelerates Nike’s digital transformation and allows the brand to serve athletes and creators at the intersection of sport, creativity, gaming, and culture.
Many predicts that despite Nike’s clear interest in virtual goods, they aren’t likely to make up a substantial share of its revenue anytime soon.
Nonetheless, fifty percent of US consumers are interested in purchasing some kind of digital asset in the next 12 months, according to the late Business of Fashion Insight report. Furthermore, the NFTs in luxury market could grow to more than $22.6 billion by 2030.
Although Nike has not shared a clear roadmap on how the two companies will work together moving forward, the acquisition of RFTKT represents the new era of digital transformation in Nike where virtual world intersects with the physical world.
With Nike paving the new way for NFTs, more traditional brands are expected to enter the world of metaverse sooner or later. Simultaneously, just a few days after Nike announced the acquisition of RTFKT, Adidas Originals also officially entered the metaverse with the release of its first NFT collection called “Into the Metaverse”.
The metaverse-era in fashion has now officially begun.
