Amid the soaring value of Bitcoin, the luxury fashion industry is seeing significant interest in accepting cryptocurrency payments as a way to access new assets and increase investor loyalty to the coin.
Recently, French luxury department store Printemps announced a partnership with the world’s largest crypto exchange Binance and French fintech company Lyzi to accept cryptocurrencies including Bitcoin and Ethereum at its stores in France. This is the first move by a department store chain in Europe to accept crypto as a payment method. The rise of Bitcoin has put the brand in the spotlight and many other brands are expressing interest in joining.
Printemps isn’t alone, luxury pen and lighter maker S.T. Dupont also plans to accept the coin at two of its Paris stores ahead of the holidays. In the experience space, cruise line Virgin Voyages has launched its first product that can be paid for in Bitcoin – a $120,000 annual pass for travel on its cruise ships.
Although regulators have warned that Bitcoin and altcoins are high-risk assets with high volatility, pledges of support from US President-elect Donald Trump, who is expected to bring more crypto-friendly regulations, have fueled Bitcoin’s record surge. According to S&P analysts, the narrative is starting to change with blockchain innovation in financial markets that could increase the stability of these currencies.
Luxury brands are looking to appeal to younger customers and those with high net worths from the tech industry. Kering’s Gucci brand, for example, will allow purchases in 10 cryptocurrencies for most products in the US starting in 2022.
The rise of cryptocurrency in the fashion industry is not only symbolic, but also opens up opportunities for modern and innovative branding, a trend that digital experts and analysts, such as Andrew O’Neill of S&P Global Ratings, believe will help brands avoid being perceived as “outdated.”
Source: Reuters.
