According to Zhikong Financial APP, the soaring price of Bitcoin has caught the attention of high-end fashion brands and retailers, further stimulating their interest in adopting Cryptos as a means of payment to obtain new wealth and establish loyalty with crypto investors.

It is reported that so far, only a few Luxury Goods brands – including Hublot and TAG Heuer under LVMH, as well as Gucci and Balenciaga under Kering Group – have attempted crypto payment services.

In recent weeks, the French luxury department store Printemps announced that it will collaborate with Binance, the world's largest Cryptos Exchange, and the French fintech company Lyzi to accept Cryptos, including Bitcoin and Ethereum, in its French stores. This makes it the first European department store to do so.

With the rise of Bitcoin, Other brands and retailers have also taken notice of this move, and they are interested in joining in. David Princay, president of Binance France, stated, "Many people have called, and this has piqued interest." He indicated that the company is negotiating with other Luxury Goods brands.

Luxury lighter and pen manufacturer S.T. DuPont announced plans to accept Crypto payments in two stores in Paris before the holidays. Virgin Voyages has started launching its first product this month that accepts Bitcoin as a payment method – a $0.12 million annual pass that allows sailing on its cruise ships for a year.

Regulators have long warned that Cryptos like Bitcoin are high-risk Assets with limited use in the real world. Among them, the high volatility is another obstacle to the widespread adoption of Bitcoin as a means of payment. However, S&P Global Analysts have indicated that innovations in blockchain within financial markets could increase the predictability of Cryptos, which may help them as a payment method.

Luxury brands seek innovation.

For a long time, luxury brands have tried to cater to affluent consumers in the technology industry. For example, opening stores in high-end shopping centers in Silicon Valley and launching the Hermes Apple Watch.

Today, Bitcoin has repeatedly reached new highs, creating new wealth. However, the luxury goods industry is facing the most serious recession in years, and finding new growth points has become an urgent need for luxury brands. Andrew O'Neill, Chief Analyst for Digital Assets at S&P Global Ratings, stated that offering crypto payments can be a way for businesses to showcase their innovation instead of being 'a stuffy brand solely aimed at the baby boomer generation.'

However, offering cryptocurrency as a payment method is largely still symbolic. Andrew O'Neill noted that retailers often convert cryptocurrency back to euros or dollars to offset the volatility risk of cryptocurrencies, and for most shoppers, payment options are generally seen as 'a solved problem' by trading platforms like PayPal or Venmo.

Analysts say that for Bitcoin investors who have seen significant increases in their investment value, luxury goods are an obvious choice for portfolio diversification.

Attracting young customers.

Gregory Boutte, Chief Customer and Digital Officer at luxury goods group Kering, described the group's technology strategy as 'test and learn,' rather than 'wait and see.' He emphasized that embracing new technologies is key to attracting young and Asian customers. Since 2022, Kering's star brand Gucci has made most of its products in the USA available for purchase with 10 cryptocurrencies.

Meanwhile, Spring Department Store is working to expand its crypto payment services to New York City, with plans to open a multi-brand retail store in the Wall Street area in March.