Why luxury brands like Farfetch partner with Ledger
Ledger Enterprise, the B2B arm of the web3 security outfit, has partnered with Salesforce, TIME and Farfetch.
With over six million units sold worldwide since its launch in 2014, web3 natives will be familiar with Ledger’s self-storage security solutions.
The outfit’s hardware wallets — most recently Ledger Stax — allow individuals to offline or cold store the private keys needed to move their assets — or, in other words, to buy or sell cryptocurrency, or NFTs.
Long and short, this type of self-storage provides a safer alternative to outsourcing storage of your key to a server managed by an external organization that can be hacked or mismanaged. To date, Ledger devices have never been hacked.
Ledger Enterprise, the B2B arm of the outfit, does similar on a macro level, giving web2-native companies the tools to integrate web3 technology, helping them build the necessary infrastructure to operate securely within the new paradigm.
This month it announced partnerships with Salesforce on the technology side and TIME and Farfetch around self-storage.
“It’s about the scalability factor,” says Alex Zinder, the arm’s global head. “Take these lessons learned and bring them to scale with the right governance and compliance tools you need to run a business.”
Examples include crypto treasury management (how to securely buy and hold currency; smart contract creation and minting of NFTs to create inventory and delivery to a retail consumer.” So these massive falls don’t fail and you don’t lose brand equity as you go along to drive user engagement and adoption,” adds Zinder.
This mass adoption of web3 technology is of course the name of the game. Take cryptocurrency – which luxury marketplace Farfetch began accepting in October.”
We’re a publicly traded company with regulatory requirements,” said Nina Patel, Farfetch’s director of innovation, retail and Web3 about the need to manage this in a way she deemed “business appropriate.”
The self-storage capability provided by Ledger, plus internal governance with multiple sign-offs on the transfer of funds ticked all the boxes.
But it was also Ledger’s one-stop-shop capability that proved attractive, Patel said. She had looked at other security solutions like Coinbase for currency, but that didn’t work for digital assets, which she said often just involved a manager with a wallet.
While specific details of potential upcoming NFT-based projects remain under wraps, Patel says the next phase involves bridging web2 and web3 for fashion and luxury.
Already in the space, Farfetch ran a pre-order campaign in 2021 with DRESSX creating 3D digital assets placed on influencers that avoided shipping physical goods, and earlier this year it created 3D versions of Burberry accessories with Threedium. It has also acquired augmented reality outfit Wanna which is currently integrated into the Browns Fashion site for virtual trying on of luxury watches.
Farfetch has also partnered with Outlier Ventures on the web3 startup accelerator Dream Assembly Basecamp with the aim of helping drive the industry forward.
In terms of specific web3-based initiatives, Patel sees the greatest potential around product IDs, provenance and authenticity as opposed to a product’s digital twin itself.
“We ask what is the added value that blockchain can unlock for the individual,” she says, also citing the tokenization of loyalty programs and community building.
“We see it as another revolutionary moment. How web3 technology can change the game the way the marketplace did for retail.”