Why do global famous brands have a special interest in Web3.0?

Published on 9/30/2022   316 views   0 Comments  

The brand direction of Web 2.0 is Web 3.0 penetration. The native IP of Web 3.0 is also building a brand to expand consumption scenarios and people.

Originated by Chainxin (ID: ChinaBlockchainNews)
Author | Fang Qinyu

Web 3.0 is now setting off a wave of traditional brands to participate.

On September 28, European luxury mobile phone brand VERTU announced that it would open the pre-sale of the world's first WEB3 mobile phone.

In fact, some well-known consumer goods brands have entered Web3.0 in different forms, such as Coca Cola and Pepsi Cola issuing NFT, LV making NFT games, Adidas and Li Ning buying NFT land and avatars respectively. Starbucks launched the Web3.0 user loyalty platform in mid September, pushing the boom to a new height. The reason why Starbucks has pushed its attention to a new high point is that its exploration in the Web 3.0 field has reached a deep water area - Starbucks NFT is linked to the behavior of consumers, and it is published in the Polygon network with lower transaction costs and faster transaction speed. In addition, Starbucks named it the "Starbucks Odyssey" program, which reveals that Starbucks has high hopes for the sales growth brought by NFT. Wang Chao, a Web3.0 researcher, wrote that the service content of marketing organizations is evolving rapidly, and even Web3 organizations in the form of DAO and cooperatives have been born. Some unimaginable players have also come. "I met the president of Time magazine in a related discussion group earlier." Most major brands have established Web3 working groups.

Consumer giants test web3.0 with member points system

Odyssey is a narrative poem originally written by Homer in Greece, which tells the story of Odysseus returning home after suffering. Starbucks clearly put forward the "Starbucks Odyssey" plan "based on Web3.0 technology", and the most significant point is its integration with the membership system.

"Based on Web3.0 technology" refers to the use of NFT and blockchain networks while building a digital community.

Starbucks Odyssey Program is based on the U.S. Starbucks Rewards membership system, from which Starbucks members and partners (employees) can earn and purchase NFT, for example, to obtain "Journey Stamp" NFT through interactive games or challenges in the Odyssey Program, or to purchase "Limited Edition Stamps" (NFT) in the built-in market of Starbucks Odyssey network application experience - members can use credit cards to purchase, No crypto wallet or cryptocurrency is required. In addition, Starbucks member points system is the benchmark studied in the marketing industry, and its member app payment system and user loyalty system are leading in the world. Wang Chao pointed out that Starbucks App is the second largest mobile payment app in the United States market, with 31 million users, second only to Apple Pay's 43 million users. Its August financial report showed that Starbucks' active members in the United States contributed 53% of its revenue in the region - which also excites many Web 3.0 practitioners, indicating that it is different from the previous well-known brands that tested Web 3.0. With the improvement of users' collection of NFT, the corresponding member points will increase, and the corresponding benefits and experiences will also increase, including virtual espresso martini production courses, commodity/artist cooperation, Starbucks Reserve Roasters activities and Costa Rica Starbucks Coffee Farm trip. That is to say, Starbucks encourages users to collect more NFTs, but the liquidity of Starbucks NFTs is limited to Starbucks internal market transactions. Starbucks Odyssey plan will also create a digital community to provide its members and partners with a new way of interaction - Starbucks Chief Marketing Officer Brewer calls this "reshaping the third space". "The third space" is an important concept in Starbucks' brand marketing system. It was proposed by American sociologist Ray Oldenburg and refers to the public space except for family living space and workplace space. Brewer clearly proposed that Starbucks would create an "accessible digital third place community supported by Web3 technology", which is reminiscent of the new organization DAO in Web3.0. It can be said that Starbucks' "water test" of Web3.0 has reached a deep-water area.ย 

Brands vying to enter Web3.0

One of the backgrounds for brands to intensively test Web 3.0 is that Google plans to cancel the cookie tracking function before 2023, but this plan was postponed to the second half of 2024 in August this year.

Google Chrome is currently the world's largest online advertiser platform, and the cancellation of cookies tracking function is a major event with negative impact on the advertising industry, which will overturn the existing advertising positioning method on the website. Under the regulatory pressure related to anti-monopoly and privacy protection, Google is testing new technology to replace this function. On the other hand, Web 3.0 is generally considered to be the next stage of the Internet, which means that Web 2.0 users will eventually become Web 3.0 users. More and more venture capital and start-up companies are flocking to Web 3.0. McKinsey, a well-known consulting company, calls Web 3.0 one of the two biggest technology trends in 2022. The control of future trends has enabled well-known brands to join Web3.0 in various forms. According to statistics, from 2021 to now (as shown in the figure below), famous brands have explored Web3.0 mainly by issuing NFT.

Most of these NFTs are for sale, and a small part are for public welfare. In terms of sales, according to Dune Analytics data, Nike gained 185 million dollars through NFT sales, ranking first; Dolce&Gabbana ($25.65 million), Tiffany ($12.62 million), Gucci ($11.56 million), Adidas ($10.95 million), Budweiser ($5.88 million), Time magazine ($4.6 million). From the perspective of issuing purpose, the main function of NFT issued in 2021 is mainly collection, which belongs to the exchange of completely virtual goods or corresponding physical products.

After 2022, NFT will be granted some rights and interests. For example, Prada will release Timecapsule NFT series in August this year, and the holders can participate in Milan Fashion Week; Or similar to "equipment", they can interact in the game, and hold this type of NFT to upgrade the game characters/avatars. For example, Estee Lauder released the NFT small brown bottle in March this year, and users can use this NFT to update their virtual images on the virtual social platform after purchasing.

In terms of the number of brands, LVMH Group has the largest number of brands entering Web 3.0, including Hennessy, Louis Vuitton and Givenchy. LVMH Group has entered Web 3.0 by issuing NFT and making NFT games.

Kaiyun Group is the first luxury brand group to try to issue NFT, and its Gucci brand is the first luxury brand to issue NFT, and continues to launch different NFT products, from NFT videos (which were shot at Christie's for 25000 dollars), NFT dolls SuperGucci to NFT virtual sports shoes (which can be used in some game platforms and social platforms), gradually emphasizing their use attributes. Compared with the above brands of NFT, Starbucks Odyssey has taken a step ahead by deeply integrating NFT with its own membership system and trying to build a digital community. Next is the Web3.0 plan of Wal Mart, a retail giant. As early as the end of last year, there was a rumor that Wal Mart would enter Web3.0. In April this year, Flipkart India Pvt, an e-commerce company under Wal Mart, set up an internal innovation department called Flipkart Labs to explore ways to expand into the meta world and Web3.

Naren Ravula, vice president of product strategy and deployment of Flipkart Labs, said that Web3 will have a profound impact on e-commerce solutions.

Web3.0 native project is favored by capital

While the Web2.0 brand has entered into Web3.0, the studios behind the original IP of Web3.0 have also successively completed financing, and further built brands to spread to entities, consumption and entertainment:

  • In March, Yuga Labs, parent company of BAYC, completed financing of $450 million with a valuation of $4 billion;
  • On August 30, Proof Collective, a Moonbirds developer, completed a round A financing of 50 million dollars;
  • In September, Doodles announced that it would complete equity financing of $54 million with a valuation of $704 million. Meanwhile, another blue chip project, Azuki, was rumored that its development team, Chiru Labs, would complete round A financing of $30 million with a valuation of $3-4 billion.

The above four NFT blue chip projects, except that Moonbirds will develop towards the licensing mode of knowledge sharing (CC0) or "no rights reserved", that is, towards a decentralized IP+social platform, BAYC, Doodles and Azuki have clearly proposed to build world-class brands. Interestingly, the newly upgraded team of Yuga Labs, BAYC's parent company, has many people with traditional brand consulting experience, such as CEO Nicole Muniz, who has more than 10 years of experience in brand expansion, and has served customers including Google, Facebook, Oscar, Nike, HBO and other international famous brand companies; Patrick Ehrlund, the chief creative officer, has more than 15 years of experience in brand building. His clients include Kanye West, Google, Square, HBO and other international famous brand companies. Doodles hopes to become a global entertainment brand, which attracted the participation of Julian Holguin, president of Billboard, and served as its CEO in May this year.

Billboard is a well-known music content platform, mainly producing a single ranking list, which is still regarded as the most authoritative single ranking list in the pop music world of European and American countries. Azuki's financing news has not been released yet, and its vision shows that it is launching games, comics and even movies in the future, following the pace of BAYC and Doodles. The brand direction of Web2.0 is the penetration of Web3, and the native IP of Web3 is also building a brand to expand consumption scenarios and people. It can be predicted that in the future, the two will meet in a narrow way. As the player community becomes diverse, NFT will not only be a small picture, but people will have a clearer understanding of NFT.

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