Nars joins NFT hype as beauty tests potential

Similarly, Elf wanted to make accessible NFTs, which were gold versions of its Holy Grail products. Even though only a total of nine were offered, each cost less than $9. The goal was to appeal to both “crypto diehards” and the brand’s own superfans, Budhraja says. The brand does not know who ended up buying the products, but Budhraja’s suspicion is that at least a few superfans were able to acquire them. The response wasn’t entirely surprising, she says, with crypto-enthusiasts responding well, but some uncertainty from beauty fans. “The beauty community is still trying to wrap their arms around what this is and what the value is,” she says.

Both Bitski and Truesy are unique in that they accept credit card payments, making the purchasing process more straightforward than marketplaces that primarily traffic in cryptocurrency. “Unlike other platforms that behave like a massive marketplace, we tell the story of one artist or one brand at a time,” Beckman says. “We’re not selling digital art for the sake of selling digital art. It’s a much broader, robust approach, rooted in creating marketing value. [There is also] commercial value in unlocking exclusive access, product drops and experiences.”

Measuring success also comes with managing expectations: “There’s a big educational curve with regards to the brands that we bring on board. I’m sure you read a lot about these pieces of artwork that are now selling north of $50 million and that doesn’t allow for everybody to get something,” Beckman says. Brands such as Nars can measure success by both gauging how the project attracted the existing consumer base and new consumers, and how demand for NFTs impacted demand for the physical product.

The potential of beauty NFTs

Fierro anticipates that it will take another six to 18 months for both consumers and brands to have a better understanding of how to make use of this technology. After multiple offers from brands, Shakeel says that this is her first time creating an NFT. She was drawn to the creative brief and to the brand, but says that as a digital artist, it unlocks potential to be both more protected in digital ownership and, if she minted her own NFTs, to ultimately make a percentage of a sale every time an artwork is sold (and resold).