Nike is taking a major step forward in the world of Web3 and digital fashion with the launch of its standalone platform, .SWOOSH. This platform will allow users to buy, sell, and trade virtual Nike products such as apparel and shoes, as well as give them the opportunity to participate in the creation of new virtual and physical products. This move reflects Nike’s ongoing investment in Web3 and digital fashion, which includes the acquisition of digital design studio RTFKT at the end of 2021.
.SWOOSH represents a significant opportunity for Nike to drive growth in the metaverse, as it offers a number of unique features that set it apart from competitors such as Adidas, Louis Vuitton, and Gucci. For example, .SWOOSH allows creators to build around the Nike brand in a virtual environment while keeping Nike closely involved in the process. The platform also promotes community-defined branding, which increases customer engagement and allows customers to cocreate digital products and receive shares in the royalties.
In addition, .SWOOSH provides an opportunity for Nike to generate incremental revenue through digital wearables in the metaverse, as users can wear and represent the brands they love in immersive experiences. Nike has already generated 93 million US dollars in primary sales of virtual goods and another 92 million dollars in royalties, and this is likely to continue to grow with the launch of .SWOOSH. Finally, by building its own platform, Nike may be able to monetize secondary sales of virtual goods in the multi-million-dollar market for physical sneakers.
The first .SWOOSH NFT drop expected to feature virtual sneakers, jerseys, and other Nike-branded digital apparel, is scheduled for January 2023 and will offer products at around 50 dollars. The collection will be influenced by the .SWOOSH community, as there will be challenges on the platform that give the winner the chance to help design new virtual products and earn money from licensing fees (royalties).
Overall, Nike’s launch of .SWOOSH demonstrates its commitment to maintaining a pioneering role and strong position in the Web3 space within the apparel industry. It will be interesting to see how the company designs its first NFT drop on the new platform, and how much user participation there will be in the creation of new products. If proven successful, .SWOOSH could showcase the commercial opportunities that cocreation holds for brands in the metaverse.