The sneaker giant is already by far the top seller of corporate branded virtual goods, taking in more than the rest of the top 10 brands combined.
The sneaker giant is already by far the top seller of corporate branded virtual goods, taking in more than the rest of the top 10 brands combined. Now it’s looking to expand sales into the mainstream with a Polygon-based NFT experience and store.
Nike has been winning the Web3 NFT game for quite some time now, at least in the corporate branding division. Now it’s launching a new NFT and virtual apparel platform called Dot Swoosh ( or “.Swoosh”) that is at the core of a strategy to bring non-crypto Nike fans into its Web3 strategy.
The platform, which is scheduled to launch on Nov. 18, “will be a place for people to buy, show off and trade phygital and virtual products; unlock access to events and products; and co-create products,” Nike Virtual Studios vice president and Web3/metaverse head Ron Faris told Vogue Business.
The goal, he said, is to make an NFT sneaker more than a collectible or a way to add fashion to metaverse avatars.
“When you think of a virtual product like a virtual shoe, it’s not just a shoe; it’s the product and the experience, service or utility baked in,” he said. “We don't see that virtual product as the end of the purchase journey; it is the beginning of the journey.”
That means anything from using the NFT as a pass to pre-order a physical version of a sneaker, T-shirt or other piece of apparel to using it as a ticket to private events such as virtual chats with top athletes, or pass to vote on future models’ design choices.
“We know we’re not just targeting Web3 natives, we’re targeting a more Web3-curious audience, people afraid to [buy NFTs] because it’s too confusing or hard,” Faris told Fast Company. The NFTs will start under $50 and be minted on Polygon — but sold in dollars.
Outscoring All Comers
Virtual apparel is a field that Nike has dominated, with its NFTs taking in $185 million, Dune Analytics said in August — 60% more than the rest of the top ten consumer brands combined, and more than seven times the revenue of the number two brand on the list, Dolce & Gabbana. Others in the top 10 include Tiffany, Budweiser and Time Magazine, as well as Adidas, which earned $11 million selling 50,000 NFTs while Nike hit its number with just 67,000, indicating a wide price and resale gap.
Nike bought digital design studio RTFKT (pronounced “artifact”) in late 2021, and has made Nike Virtual Studios a priority, with LA Lakers legend LeBron James launching his LeBron 19 sneaker both physically and virtually in its Nikeland experience in the non-blockchain Roblox gaming metaverse during the 2022 All-Star Game event.
Interactivity will be a key focus of Dot Swoosh, with visitors able to provide input on design choices — for example voting on design choices like colors — but also providing community challenge winners “the chance to co-create and earn a royalty for every virtual product they helped co-create,” Vogue Business said.
Down the road people may be able to set up their own personal design sites on the .nike domain to create, display and sell virtual goods.
More immediately, Dot Swoosh will be working to onboard the broader Nike community, not just Web 3 crypto tokens fans, with a first product drop likely early next year.
“We want to redefine what it means to be a creator, and we believe the future of sport is creative and inclusive,” Faris said.
