Hugo Boss and Balenciaga Bank on Web3 to Boost Client Loyalty
Hugo Boss unveils a new Web3-powered loyalty program, Balenciaga introduces NFC-connected merchandise, and Adidas uses the Apple Vision Pro in its Seoul store.
Following Blackpink’s release of digital collectables, the Web3-powered entertainment sector is progressively picking up steam. Balenciaga unveiled a new NFC-enabled merchandise collection this week with musician BFRND.
The collection introduces a new gamified experience and is the third NFC-infused project from Balenciaga’s Music subsidiary. But does the idea have traction?
Launching the customer loyalty program
With the launch of its new customer loyalty program, fashion pioneer Hugo Boss promises its members “a new world of engagement.”
The company has revealed that Hugo Boss XP, its newest loyalty program, will be integrated with the Hugo Boss customer app. This app allows users to access various loyalty features, such as levels and points.
The fashion giant has characterized the initiative as a component of its “ambitious multiyear roadmap” to increase engagement by emphasizing customer experience and lifetime value. The program is scheduled for its initial release in the UK in June.
Its Web3 and blockchain features are arguably the new program’s most notable features.
The company has also confirmed plans to enable customers to trade their tokens with each other in the future, even though this feature is not expected to be available in its initial iteration.
Hugo Boss Chief Sales Officer Oliver Timm commended the new initiative’s “bold, customer-centric approach,” saying:
“With our new membership program, we are taking customer engagement to a new level, further enhancing and expanding interactions with our brands. By deepening the relationship with our customers, we drive a higher lifetime value, further advancing our profitable growth journey.”
Combining Blockchain and Loyalty for a New Engagement Era
Hugo Boss XP’s incorporation of blockchain technology and conventional loyalty components is a noteworthy innovation in the fashion sector. The program updates the loyalty experience and creates new avenues for customer interaction and engagement by enabling members to accrue and redeem NFTs. This fusion of the old and the new produces a dynamic and adaptable membership experience that meets the changing needs and tastes of contemporary customers.
Hugo Boss XP relies heavily on tokens, but it also uses “innovative” customer data and touchpoints to deliver an omnichannel experience that is hyper-personalized and locally relevant.
According to the company, the program improves brand discovery and engagement by enabling members to access it through either Boss XP or Hugo XP, which aligns with Hugo Boss’ current two-brand strategy.
But even with these features, Hugo Boss XP remains essentially a token program.
In addition to the general NFT features mentioned above, the business provided the following two token examples.
Unveiling the tokens
Members can obtain the regular visitor token by tapping their phone at different Boss store touchpoicheck-inheck-in.
By doing this, customers receive access to exclusive Boss products and more individualized service because store staff members are privy to specific customer data.
The Hugo Blue brand line of wearables is rewarded with distinctive digital wearables by the token, which also provides brand-specific tokens for co-creation opportunities.
Hugo Boss’ adoption of Web3 and blockchain technology into their loyalty programs is hardly surprising, given that luxury brands like Louis Vuitton, Gucci, and Prada have been doing so recently.
However, despite the company’s high discourse regarding customization and customer interaction, these principles rely on its token system.
Thanks to its omnichannel strategy, Hugo Boss is surpassing once-untouchable rivals in the Web3 market. The brand fully invested in its tech-driven strategy during the first half of the year, integrating metaverse activations, gaming partnerships, and holograms.
Hugo Boss’s next move toward prioritizing meaningful engagement for its audience is reflected in its new Web3-powered loyalty program. These efforts imply that the label is in the digital space for the long haul, not just for a quick win. Sales growth may result from these efforts in the future.
DISCLAIMER: It's essential to understand that the articles on this site are not meant to serve as, nor should it be construed as, advice in legal, tax, investment, financial, or any other professional context. You should only invest an amount that you are prepared to lose, and it's advisable to consult with an independent financial expert if you're uncertain. To obtain more information, kindly examine the terms of service and the assistance and support resources made available by the issuing or advertising entity. Our website is committed to delivering accurate and unbiased news, yet it's important to note that market conditions may change rapidly. Also, be aware that some (but not all) articles on our site are compensated or sponsored.
