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There’s a pair of Louis Vuitton x Nike sneakers on auction right now for $80,000.
That may seem like a crazy amount of money to pay for some fancy shoes.
But if you’ve been following the sneaker market the past few years, you may not be surprised.
Investment firm Cowen estimates the global sneaker resale market was worth about $6 billion in 2020.
It expects the market to more than double by 2025. And it could reach $30 billion by 2030.
That’s 400% growth in a decade!
As it stands, Nike and other sneaker companies don’t make any money from resales.
But thanks to the metaverse, that’s about to change…
Welcome to Nikeland
Nike is partnering with game developer Roblox and blockchain firm RTFKT Studios to create Nikeland.
Visitors to this virtual world can play classic games like tag and dodgeball with their friends.
Nikeland also lets you customize your playing field and even make up your own sports.
Another aspect of Nikeland is players can buy digital sneakers and other Nike products for their avatar.
Basically, Nike wants to sell NFTs.
This is a game-changer for several reasons:
- NFT creators can get a royalty every time their NFT is sold on the blockchain. That means Nike could take a 5% or 10% cut of the resale market.
- Digital content is cheaper to make and sell than physical goods.
- “Sneakerheads” — superfans who buy and trade sneakers — can easily and quickly make transactions on the blockchain.
Plus, Nike mainly caters to young people ages 15 to 34. This group also has the most interest in NFTs.
The NFT Market Skews Young
We’ve already seen that limited-edition sneakers can fetch high prices.
The Louis Vuitton auction is just the latest example of that.
So, it’s not hard to imagine exclusive Nikeland sneakers getting a lot of attention.
We might even see virtual sneakers sell for much higher than $80,000.
Digital Merchandise Is the Next Big Thing
Nike is far from the only retailer getting into digital merchandise.
Under Armour sold sneaker NFTs in December for $333.
One of them went for over $20,000 in Ethereum on the OpenSea market.
Adidas’ “Into the Metaverse” NFTs sold out within hours when they debuted last month.
The sportswear giant made $23 million from the sale.
And Gap started selling hoodie NFTs a few weeks ago.
Collectors who bought an “Epic level” Gap NFT will also receive an exclusive physical hoodie.
Even Walmart, the world’s largest retailer, is getting into the metaverse.
The company just filed trademarks to sell virtual items such as furniture, electronics and toys.
It also plans to create its own digital currency.
Check Out Ian King’s Metaverse Play
It’s an exciting time for e-commerce, NFTs and the metaverse.
If you’re looking to invest in this trend, Ian King recently recommended a metaverse stock to his Strategic Fortunes subscribers.
You can learn more about Strategic Fortunes by clicking here.
Assistant Managing Editor, Banyan Hill Publishing
From open till noon Eastern time.
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