While some brands moved away from web3 in 2023 during a long crypto winter, Puma stayed the course and its head of emerging technology, Ivan Dashkov told TechCrunch+ He has no intention of leaving.
After After two years working with web3, Puma's tech revenue remains modest, but the sportswear maker aims to be prepared for a more cryptocurrency-friendly future. “Web3 is a big change in the way people use the Internet,” Dashkov said. These changes in the way the Internet is used can create changes in the landscape for brands, something that Puma is more than aware of.
The company “missed the boat” on the big waves of e-commerce and social media that occurred in recent decades, so it wants to be one of the first in this space, Dashkov explained. “We don't think the way space exists today will be what it looks like in four or five years, but we want to be prepared.”
In February 2022, Puma registered its first ethereum Name Service (ENS) domain: Puma.eth. ENS domains are popular among ethereum users who want to have accessible addresses, usually related to themselves or a brand, rather than copying and pasting a string of randomly generated letters and numbers.
In June 2023, Puma launched Black Station and Black Station 2, which its website It refers to it as an “experimental 3D space playground,” which is a lot of words to basically describe a metaverse. I tested the entry page and found it a bit slow and confusing. (Disclaimer: I'm not a big gamer, so maybe I'm missing the point, but I imagine not all Puma fans are either.) Regardless, his metaverse aims to give consumers a different way to interact with the brand, Dashkov. saying.
There is a growing understanding among brands that an nft “is no longer just a jpg collectible,” said David Nage, portfolio manager at Arca. “It opens the door to a new relationship with consumers.”
Although the nft market was “hit” and “general interest had waned,” Puma released two nft collections. PUMA Pass and Super PUMA, which sold out in less than an hour, in September 2022 and February 2023, respectively, Dashkov said. Passholders get exclusive access to new sneakers, free items and other releases in their metaverse that regular consumers don't have, he added.
There are around 4,000 PUMA Passes and 2,000 holders for the collection and 10,000 Super PUMA NFTs and 3,300 holders; they are all sold out, and some superfans have two or more NFTs, for example, Dashkov noted.
“In the early days of NFTs, when they were promoted, there was a lot of culture around NFTs,” Dashkov said. “It's getting a lot of attention and brands that want to be culturally relevant, that's where they want to be. . . it’s about finding where cultural moments are happening and the physical and digital worlds are part of those moments.”
As 2024 begins, the company plans to continue working with other big brands in the space and deepen its relationship with existing ones like Meta. Although not a “big goal,” Puma's partnership with Meta's virtual avatar store has been a “revenue generator” and has brought revenue streams to Puma through its digital product channels, Dashkov said.
In the last six to eight months, Puma has focused much of its web3 development efforts on digital products, NFTs, the Meta avatar store, console titles and mobile games, given the number of people who are attracted to those spaces.
Nage hopes there will be more traditional online games that embrace digital assets and the physical and digital, or “phygital,” in a way that captures the attention of billions of players around the world. Using digital community experiences like Puma's .SWOOSH or Nike, fans can express their “personal style through gameplay,” Nage added.
“We want to be where people spend time, energy and money,” Dashkov said. “It is important to be active and busy in those spaces” even though so far they are only earning “small income.”
But making money on web3 is not Puma's goal at the moment. “The most important goal is for people to wear Puma clothing in these spaces because they are proud to show it off. It is important for us as a brand to be there. . . and (long-term) revenue growth will come from these spaces, hopefully,” he added.
In the past, Puma “wasn't seen as innovative,” Dashkov said. But he hopes Puma's deep dive into web3 will change that. “We are still testing and learning. That has been our mantra in the web3 space.”
