NFT and metaverse: Hogan’s new strategy for his luxury shoes

hogan is a footwear brand of the Tod’s group specializing in luxury moccasins and ankle boots for men and women. The company’s history begins in the 1920s, when the father of the current CEO of Tod’s, Dorino della Valle as shoemaking as a cobbler. Founded by Diego della Valle in 1978, the group includes several brands such as Tod’s, Hogan, Fay, Schiaparelli Paris, Roger Vivier. In 2018, the brand’s turnover amounted to 207.5 million euros. But by 2020, the group’s sales were down 30 percent. Results that “have been profoundly influenced by the pandemic” already explained the chairman and CEO of the group. The group therefore seems to be betting on a new approach to its brand in order to “to invite people to get involved with Hogan, embrace the attitude of the brand, and ultimately have fun” specified the president of Hogan and vice-president of the group Tod’s Andrea della Valle.

A new marketing strategy

The Italian shoe brand has indeed bet on a completely different approach in its marketing strategy, throwing itself body and soul into the metaverse and the NFT dynamic which is globalizing. This change of direction was also celebrated by a big event on the metaverse Decentraland with guest DJ Bob Sinclar during the Metaverse Fashion Week Party. A high-profile event that allowed the brand to combine community entertainment and retail. The brand has also settled in Decentraland, with a pop-up store that should remain established for six months.

How does it work ?

How to sell shoes virtually? It’s very simple: the NFTs on sale are exchangeable for physical versions of the desired pair of shoes. This exchange of digital assets for physical assets is made possible by the enabling technology of the Boson Protocol, which connects blockchain-based smart contracts to real-world assets without the need for a centralized intermediary. One of the advantages of this form of sale is that you can own its digital equivalent in the form of a “wearable” (a digital outfit for your avatar) in the Decentraland metaverse.

A successful precedent

Hogan is embarking on a new form of digital selling that has already been successful for the company RTFKT. Indeed, this company sells NFTs of sneakers luxury, so that buyers then receive them in real life. In a few months, the success of the start-up led it to be bought out by Nike. This acquisition for an undisclosed sum took place only two years after its creation. Shortly before its takeover, the valuation of the startup stood at $33 million, which can give an estimate of the amount Nike paid.

In conclusion, the already dazzling success of RTFKT set an example. An example that Hogan hastened to follow, rushing into a new marketing strategy that is perfectly suited to the field of luxury goods. In just a few months, the marketing strategies and sales processes of luxury brands have already evolved considerably with the appearance of NFTs. A change that seems to expand rather than retract.

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Gregory Morat

Student passionate about entrepreneurship and fascinated by the technologies behind cryptos! And yes, I am convinced that the two are intimately linked: blockchain and NFTs are revolutionizing many sectors and presenting unprecedented opportunities.

We wish to thank the author of this short article for this amazing material

NFT and metaverse: Hogan’s new strategy for his luxury shoes

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