NFTS MARKETING
N
FTs, or non-fungible tokens, are suddenly gaining priority on beauty brands’ to-do lists. And it is no
surprise, as the digital artwork industry is (virtually) blowing up, not just year- on-year, but quarter-on-quarter. NFT sales surged to US$10.7bn in Q3 2021, reported analytics platform DappRadar – 704% versus the previous quarter. For its latest collaboration with Netflix’s Selling Sunset star Christine Quinn, Ciaté London hired street artist 1Penemy to design four digital artworks, which sold out in less than 24 hours.
Elsewhere, Gallerist Amar Singh, who recently partnered with Givenchy on its NFT debut, has brokered $300m worth of upcoming NFT collaborations, many of which are with the beauty industry. The almost overnight success of this burgeoning technology sector has understandably garnered countless headlines of ‘get rich quick’ schemes and many cosmetics brands have dipped their toe into the pixelated water, eager to take advantage of the NFT boom.
As such, findings by data firm Filing Analytics saw a massive x20 jump in mentions of the keyword ‘NFT’ in company filings in 2021. But if you think NFTs are a fad, then think again. More than a quirky graphic image on a screen, NFTs represent the future of ownership, consumer engagement, CSR and even investment. Here, Cosmetics Business explores key case studies of different beauty brand strategies for approaching the NFT space, including sustainability, brand heritage and how it all links with the future of the Metaverse.
HYPE UP THE HERITAGE For its debut into NFTs, LVMH-owned Guerlain developed four digital artworks to be sold at auction and with all proceeds going to two hectares of rewilding projects. Working with long-term collaborator and artist management agency Fisheye, the Angelina Jolie-fronted brand was able to select four female artists to create NFTs to be sold at its annual International Contemporary Art Fair. In turn, Guerlain seamlessly integrated the new technology with its brand heritage of femininity, luxury, the natural world and culture.
By focusing on cultural innovation, Ann-Caroline Prazan, Guerlain’s Brand Artistic, Culture and Heritage Director,
cosmeticsbusiness.com
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More than a quirky graphic image on a screen, NFTs represent the future of ownership, consumer engagement, CSR and even investment
couldn’t get the product in-store, you could hold onto the essence of Black Honey in the digital form,” continues Iyer.
tells Cosmetics Business that NFTs enable Guerlain to boost its brand heritage.
“NFT is a natural field to evolve for Guerlain, as it is transforming the art market,” she explains. “As NFT becomes more and more important in the art field in general, Guerlain wants to keep its foot in that exciting space.” She adds: “NFT only gives us more opportunities to keep on leveraging this historical posture. Our love for art, our deep relationships with various and fascinating artists from all over the world will only be boosted and ameliorated by the expansion of NFTs. It is thanks to this love and those relationships that we have historically stood out and I think it will remain like that.”
MODERN LOYALTY
This autumn, Clinique became the first Estée Lauder brand to venture into NFT. Rather than selling the assets, the prestige skin care brand took it as a moment to celebrate existing shoppers, who are signed up to its reward scheme, by offering them the chance to win free products for ten years along with one of three editions of its Meta Optimist NFT. “We looked at how we are treating loyalty in today’s world and if we could modernise it for NFT in the metaverse,” Roxanne Iyer, Vice President Global Consumer Engagement at Clinique, tells Cosmetics Business.
The ‘molecule’ concept of the NFT trio symbolises Clinique’s brand heritage along with its hero products, Moisture Surge 100H and Almost Lipstick Black Honey, the latter being a 50-year-old product that has recently found a second wind after going viral on TikTok with 28.1 million views of #cliniqueblackhoney. The product is constantly sold out on
clinique.com, including at the time of writing. “If you
For Clinique, the NFT is an opportunity to bridge the gap between the physical and digital world, as well as linking up all brand communication strategies. Firstly, to enter, Smart Rewards members had to share a story about someone who brings them joy, or how they try to share their optimism. Then the winners of the NFT and products will be announced by ambassadors Emilia Clarke and Melissa Barrera on the company’s social account. Also, the recipients will receive the products annually via consultations with Clinique to monitor their skin care routine and results.
As a result of the NFT competition, but before the winners were even announced, Clinique described “pretty strong lifts” in metrics, including a 20% increase in social media engagement and a 60% uplift in search and time spent with the brand online. Iyer adds that, while it was not the objective, the team has witnessed an uptick in sign-ups for its loyalty programme as a result of the campaign.
“A lot of brands get into innovation because they’re trying to reach brand new audiences,” she says. “We actually set out with a broader mission to do both, because the message that we wanted to send our current consumer is that you are valued.”
Similarly to Clinique, NARS’ debut into NFT was not a revenue-generating project, but a moment to focus on existing brand fans. To coincide with National Orgasm Day on 31 July, the Shiseido-owned make-up company commissioned three artists – DJ and music producer Nina Kraviz, collage and crystal artist Sara Shakeel and multimedia artist Azéde Jean-Pierre – to each create a digital collectable inspired by NARS’ cult Orgasm blush-shade- turned-cosmetics line. “It’s essential to keep community at the core of your NFT strategy,” says Dina Fierro, VP of Global Digital Strategy & Social Engagement at NARS. “Before investing in a programme, consider the long-term viability and clearly identify the value, utility or access the NFTs will offer your consumers.”
NEW COMMUNITY MARKETING But the NFT space is not just for legacy, luxury brands. Indie brands are also
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