ONLINE LUXURY BRANDS ENTRY INTO CRYPTO ACCEPTS CRYPTO PAYMENTS
The elite traders are trying to deal with a new generation of wealthy consumers and some have identified cryptocurrency as a way to do just that. A large number of wealthy people under the age of 40 have invested in Bitcoin, according to analysts and companies. That is especially true in the U.S., where a few luxury brands will be key to their growth efforts in the next few years.
In May, Gucci and Balenciaga, owned by Kering SA, said they would begin taking crypto payments. Gucci said it would try cryptocurrency payments in New York and four other U.S. cities, while Balenciaga introduced it in New York and Los Angeles.
This week, Gucci said it aims to expand its customer base among the under-30s, while expanding its digital offerings.
Meanwhile, luxury watchmaker Tag Heuer, owned by LVMH Moët Hennessey Louis Vuitton SE, announced plans in May to accept crypto payments in the U.S.
While e-commerce is still relatively sophisticated compared to the wider online shopping market, the epidemic has greatly increased the consumer luxury use of digital channels. Farfetch posted $ 2.3 billion in revenue last year, an increase of 35% by 2020.
Farfetch said it had already reviewed the use of crypto currencies at some of its virtual stores - including Brown, a department store in London - and promised to share its knowledge with its product partners.
The company, based in London and headquartered in New York, aspires to become a leading online retail platform. It also provides technical services to luxury retailers. In April, Farfetch said it would invest $ 200 million in the Neiman Marcus Group as part of a deal that would see Farfetch upgrade Neiman Marcus' digital contribution led by Bergdorf Goodman.