The increase in the price of Bitcoin has attracted high-end fashion brands and retailers. These brands are now showing interest in adopting cryptocurrency as a payment option to gain access to newly wealthy individuals and strengthen their relationships with crypto investors.
According to the British news agency Reuters, until recently, only a few luxury brands, including LVMH watch labels Hublot, and Tag Heuer, and fashion brands owned by Kering, such as Gucci and Balenciaga, had experimented with crypto payment offerings.
In recent weeks, French luxury department store ‘Printemps’ announced that, in collaboration with the world’s largest crypto exchange, Binance, and French financial tech company Lisi, it is accepting cryptocurrencies including Bitcoin and Ethereum in its stores in France, becoming the first European department store to do so.
With the rise in Bitcoin’s value, this move has been noticed by other brands and retailers, who are showing interest in joining in.
Binance France President David Prunke said that they have received many calls expressing interest.
Luxury lighter and pen maker ST Dupont told Reuters that it aims to start accepting cryptocurrency payments at two stores in Paris before the Christmas holidays.
In the realm of experimentation, cruise company Virgin Voyages began offering its first product this month, accepting Bitcoin as a payment option. The company offers an annual pass for $120,000 to travel on its cruise ships for a year.
Regulators have warned that cryptocurrencies like Bitcoin are high-risk assets, with limited real-world use, and volatility remains an obstacle to widespread adoption as a payment method. However, promises of support from the newly elected U.S. President Donald Trump, who is expected to bring more crypto-friendly regulations, have led to a record increase in Bitcoin’s price.
S&P analysts say the narrative is starting to shift, noting that blockchain innovation in financial markets could increase the forecast for cryptocurrencies.
‘Seeking Modern Branding’
Luxury labels have long been trying to meet the needs of affluent tech industry buyers by opening stores in major Silicon Valley malls and launching products like the Hermès Apple Watch. For example, this French Birkin bag maker’s leather straps are paired with the connected timepieces of tech company Apple.
Now, the new wealth created by Bitcoin’s recent surge to over $107,000 has emerged at a time when the luxury industry is facing its largest slump in years and is seeking new sources of growth.
Andrew O’Neill, head of digital assets at S&P Global Ratings, said that offering cryptocurrency payments could be a way for companies to present themselves as modern brands rather than old brands that only sell to boomers.
The payment option largely remains symbolic, O’Neill said, as retailers typically convert funds to euros or dollars to avoid the volatility risks, while platforms like PayPal or Venmo have already solved payment methods for most buyers.
Analysts say that for Bitcoin investors who have seen a significant increase in the value of their investments, luxury goods, designer handbags, or high-end watches are an obvious choice to diversify their portfolios.
