Non-fungible tokens (NFTs) are digital assets that are certified and traded on a blockchain. The underlying concept of NFTs is proof of ownership of something unreplicable.
Over the past year, we’ve seen a flurry of NFT titles selling for millions. They have made their way into a wide range of industries including sports, luxury fashion, automotive and now beauty.
On March 14, LG Household & Healthcare (LG H&H) announced that it was entering the NFT space as part of its long-term consumer engagement strategy for its skincare brand belif.
The South Korean consumer goods company announced on March 14 that it will be selling NFTs of characters from the belif universe such as Duncan, who is based on Scottish herbalist Duncan Napier.
It will hit 3,000 NFTs, which are expected to go on sale this month on the OpenSea platform.
According to the company’s press release, this is part of the brand’s marketing strategy aimed at millennials and Gen Z consumer groups.
LG H&H thinks its NFTs can “to form a strong fan base for the brand beyond just selling products” with his new medium of storytelling. In addition, belif NFTs also have tangible benefits, such as a special membership.
LG H&H isn’t the first company to create its collection of NFT artwork. It follows in the footsteps of brands such as Clinique, elf Cosmetics and NARS Cosmetics who have released their own collection of NFT artwork.
To coincide with National Orgasm Day on July 31, NARS has released its first series of NFT artwork inspired by its cult classic Orgasm product collection. NAR’s NFT launch was widely touted as a success, perhaps thanks to the legacy of the NARS Orgasm brand.
“NFTs are meant to imitate a product or something that has intrinsic IP value. In short, I think NFTs have a lot of value if they have good IP. Let’s look at sports trading cards – obviously you would want Michael Jordon or Babe Ruth because these people are iconic with a very strong legacy,” explained Latif Sim, founder of beauty brand Potions and chief strategy officer of live-streaming technology company BeLive.
While NARS may have had a successful NFT debut, not every beauty brand needs to jump on the non-fungible bandwagon, Sim said. In fact, he wondered if beauty brands even needed to get into NFTs, given the grand scheme of the metaverse.
“You have to think big. For example, Lamborghini has started releasing NFTs and one of their approaches is to create NFTs for their iconic models. This may later translate into the Metaverse. Virtual worlds are hot right now. Ultimately, people can enter a virtual world where they can buy virtual properties, a house and its furniture, and a car. I think we are preparing for this kind of world. The end goal should be how an NFT can possibly fit into the meta world. Honestly, I can’t foresee a solid use case for beauty right now.