Nike is often one of the first brands to experiment with new technology and platforms. Afterall, their forward thinking ethos is "to bring innovation to every athlete on the planet." So it should come as no surprise that they are taking bold steps into the Metaverse.
Several years ago they registered the patents for "Crypto Kicks," before the whole NFT and blockchain boom really went off. And recently they have been making more moves, first with the unveiling of NikeLand on the upstart gaming metaverse Roblox, and then with their splashy acquisition of RTFKT, the indie virtual fashion house.
While Adidas and Under Armour have already come out with Metaverse offerings, you can expect Nike to be in it for the long haul. They have long been pivoting to become a digital first company or the Amazon of Sneakers. Their recent metaverse ambitions will only help expand their digital footprint.
So before their meta-dreams become a reality, lets take a look into the future and speculate what some possible outcomes of Nike's presence in the metaverse could look like.
Secondary Market
Nike wrote and then re-wrote the rules on the sneaker secondary market. They have the supply and demand game of cat and mouse down to an exact science. They know exactly how to push and pull hypebeast collectors with perfectly timed drops of new colorways, classic re-issues and headline making collabs. Now they are taking those talents into the metaverse and NFTs markets, of which secondary sales is a key feature.
Now sneaker enthusiasts will be able to own their grail sneakers on the blockchain forever. Unlike traditional sneakers that yellow and disintegrate over time, virtual kicks will remain intact for all time. No humidifying. No restoration. Add this to provably scarce releases and drops on Nike's SNKRS app, and you get a result custom made in sneaker closet heaven.
Virtual Retros
The OG Nike Air Jordan 1s are one of the legacy sneakers that continually see eye-popping prices on auction sites. But the past is past. The Jordan 1s will never be launched for the first time ever again. Except within the metaverse.
Yes, at sometime in the near future, you will be able to bid on the first Nike Air Jordan 1 to step into the metaverse. I expect the initial prices will already be wild do to the legacy and historical IP behind the legendary sneaker. Add to this history with an insanely low mint count, and sneakerheads could be experiencing new levels of FOMO. Setting some ETH aside now...
Nike Plus Loyalty Program
Nike has been playing around with and iterating their ecosystem of digital apps for years. They are always looking for ways to reward athletes for moving their bodies. Run a certain distance and you unlock a discount. Show up at a special event and show you're a member of Nike.com and get a limited edition shirt. They'll be taking this behavior with them into the metaverse.
Imagine by holding some kind of Nike NFT that you will accrue points and eventually tokes over time. "Just Do It" coins anyone? Nike has long been relying on email signups to track and reward users. Now with the inception of NFTs, they can simply airdrop exclusive rewards and access to holders. No more confusing signups at events anymore, just flash your NFT and enjoy the ride.
Activity based NFTs
They will also be able to introduce NFTs that dynamically change and become enhanced the more you move. Maybe everyone starts off with a basic avatar, and through using the Nike suite of apps, they can gradually build up and tone their virtual selves. Put in reps at the weightroom and your avatar gets a little more cut. Set a PR on your morning run and get a confidence boost of your attributes. Show up at a Nike sponsored event and get the custom merch for your avatar. Run a Nike race and get the virtual medals to show for it.
Influencer Collabs
Nike pretty much invented the influencer / athlete collab. They were the first company to invite athletes like Michael Jordan into the early design discussions to help inform the look and features of their signature shoes. They kicked things off on a cultural and street cred level with their Pigeon Dunk collaboration with Jeff Staple. (Who has just recently collaborated with RTFKT on his own Meta-Pigeon sneakers.) In the early 2010s they changed the game again when they collaborated with Kanye West to release the instantly coveted Nike Air Yeezy. Since then, it's become a standard move to partner with the influencer of the day, give an existing shoe a new colorway and a personal story and sell it to their fans.
Expect Nike to bring this playbook with them into the metaverse. With virtual reality as a canvas, I expect to see an even wider array of cultural figures brought into the mix. Digital artists, visual artists and experimental designers will all figure into the future of Nike's offerings. Giving the sneaker giant the ability to tap into different niches alongside keeping their core fans coming back for the newest shiny kick to add to their virtual shoe lockers.
New Breeds
Nike would be able to milk their existing and retro models for eternity if they wanted to play it safe and keep growing their digital business. However, I imagine with RTFKT as partners and consultants, they'll be taking a few crypto-native swings and experiments along the way.
Imagine a dynamic, generative version of Nike ID. Where you log in, maybe set a few attributes, and then AI creates a custom, never been seen before, 1/1 Nike that is a random combination of traits and models from over the years. Creating entirely new hybrid Crypto-Kicks. Imagine some day in the future also being able to buy the physical version of what you created digitally.
There is no finishline in the metaverse
There is no doubt Nike is setting up shop for the long term. I remember reading Nike founder Phil Knight's book in the mid 1990's where he had a section that talked about the future of Nike. He said that one day Nike would be like a sports Disneyland, and it would become a place where you could live out your sports fantasies, possibly even in virtual reality. Well, Uncle Phil, it looks like your prediction is starting to come to life...
