Clothing / Accessories

Will Nike’s Digital Shoes for the Metaverse Attract Collectors?

Everyone in the world now knows who and what Nike Inc. (NKE) is. With some of the world still lacking proper internet access, some people still aren’t going to really be that familiar with the metaverse that everyone is talking about. So what about Nike making digital sneakers for your virtual self in the metaverse?

Will Nike’s digital shoes attract collectors for the metaverse or will these merely be a fashion statement? Ditto for Nike’s apparel.

Nike has filed a trademark application for the “Just Do It” slogan and for its own swoosh logo. This is for downloadable virtual goods. To be more specific, it would pertain to digitized versions of or digitized offerings of clothing and footwear and other accessories in online virtual worlds.

Yes, this will mean that even in the metaverse you are going to see virtual people wearing and using Nike products. This may sound a bit ludicrous if you haven’t familiarized yourself with the metaverse, but this is not the first digitization of Nike’s “stuff.” Jordan’s brand partnered with Fortnite more than two years ago related to Nike sneakers and the company has also filed a CryptoKicks patent late in 2019 to link real world shoes with non-fungible tokens (NFTs) that effectively prove ownership.

The big question is how these will work once the metaverse is up and running. Will the shoes and clothing items degrade and have to be replaced like they do in real life? Or will they become permanent pieces? If they are permanent, they will definitely be classified as collectibles. If they degrade over time, it seems that stinky sneakers with worn soles will simply be online goods.

Nike may not have figured that model out yet. One thing is for sure. Nike generated $44.5 billion in revenues in its fiscal year ending May-2021, up from $37.4 billion the prior year. Nike does this by selling products that ultimately have to be replaced. The company knows that its shoes are also bought and sold as collectibles and then traded on sneaker exchanges and “lifestyle/culture” exchanges, but that is not the company’s bread and butter.