Why Gap is selling NFTs

As it seeks to reach new customers and cement its existing base of hoodie loyalists, Gap is tapping into one of the trendiest tools in the modern marketing world—NFTs. The clothier announced today that it will debut its first collection of non-fungible tokens on Thursday. Like some retail rivals, the brand’s NFTs will include a gaming component to encourage customers to continue to engage. The limited collection will feature work from Brandon Sines, the New York-based artist behind Frank Ape illustrations. Gabriella Santaniello, founder of retail consulting firm A Line Partners, said Gap’s foray into NFTs is a smart move to reach younger customers at a time when brands need to focus on digital endeavors. “It’s worthwhile,” she said. “That’s where the eyeballs are right now—eyeballs are not in the mall, unfortunately. As much as [retailers] want to think that people are coming to [their] stores.” The NFT collectibles will be available for purchase at different price levels—the lowest, called “Common,” will cost roughly $8.30, while the highest, “One of a Kind,” will be available for purchase in an auction format on Jan. 24. Customers who collect the digital art at lower levels and reach a certain level will be able to purchase a physical Gap hoodie designed in collaboration with Sines. “We are constantly evaluating opportunities to engage with platform partnerships that align with our values and provide a way for our customers to express themselves,” a Gap spokeswoman wrote via email. A release noted that Gap selected Tezos, which touts its energy-efficient, open-source blockchain as carrying a low carbon footprint, as a partner because of the clothier’s commitment to sustainability. Indeed, the carbon emissions resulting from NFTs could be a continuing risk for brands that are trying to be more eco-conscious. In a statement, Michele Park, senior director of women’s design at Gap, noted that the NFT collection is “just the tip of the iceberg” of what customers can expect to see from the brand in the digital space. Earlier this week, Gap debuted its first TV spot for Kanye West’s Yeezy. The 30-second spot was an excerpt from West’s “Heaven and Hell” music video from his most recent album. The Yeezy work is another example of Gap’s efforts to inject newness and relatability into its 53-year-old brand.

Why Gap is selling NFTs

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