Luxury Brands Establish Cryptocurrency Payment Systems
Turning to Crypto Wealthy as Consumer Base Shrinks
It is reported that the number of global luxury brands allowing cryptocurrency payments is increasing. The industry expects such attempts to grow steadily due to factors like the surge in Bitcoin prices.
According to foreign media and the luxury industry on the 19th, the French Parisian department store Printemps is accepting cryptocurrency payments, including Bitcoin and Ethereum, at its stores in collaboration with the virtual asset exchange Binance and French fintech company Ledger. This is known to be the first case among European department stores. Printemps is a famous department store considered one of the "three major department stores in France."
David Princay, CEO of Binance France, stated, "There are quite a few inquiries regarding cryptocurrency payments," adding, "We are also in discussions with other luxury brands about cryptocurrency payments."
French luxury brand S.T. Dupont also plans to establish a cryptocurrency payment system at two of its Paris stores within this month. Cruise company Virgin Voyages has enabled payment by Bitcoin for annual passes that allow sailing on cruise ships for up to one year starting this month.
Previously, French luxury brand Balenciaga and Italian fashion brand Off-White also set up systems that allow payments with cryptocurrency.
The collaboration between luxury companies and cryptocurrencies is analyzed as a strategic move to attract the MZ generation (Millennials + Generation Z), who have earned money through cryptocurrency investments, as new consumers amid a shrinking luxury consumer base due to economic downturns.
Famous cryptocurrency investor influencer Eunice Woong recently purchased several luxury watches worth tens of millions of won, including the luxury watch brand Audemars Piguet's "Royal Oak," from retailers and other secondary markets. She said, "It takes too long to buy items at luxury stores, so if I continue to purchase luxury goods, I will choose the secondary market (where cryptocurrency payments are possible) rather than stores."
According to research by TripleA, a cryptocurrency payment company headquartered in Singapore, about 50% of the global luxury market is expected to be occupied by the millennial generation by 2025. Among them, half of the millionaires in dollar terms hold more than 25% of their wealth in cryptocurrency.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
