Brands in the age of Web3 [Analyse]

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Metavers or NFT, projects are multiplying in retail. How and why, Nicolas Diacono, Digital Trends Analyst at Echangeur by BNP Paribas Personal Finance deciphers the Web3 phenomenon.

Brands in the age of Web3 [Analyse]

The initiatives of brands and brands around Web3 are multiplying with the concepts of metaverse or NFT. This can also raise questions about their usefulness. Many brands have launched in order to feed press and media relations. Others gave in to the pressure of the famous FOMO (Fear of Missing out). Many simply want to learn. Others, like Nike, started with the goal of defining the future of clothing fashion. A consumption mixing virtual and real world thanks to the power of community.

How can a brand or a sign be brought to launch into Web3? Should we go there now? But what are the elements to understand?

First of all, we must integrate that the concept of the metaverse in 2022 is at the same level as e-commerce in 1997: we are only at the beginning. Everything is to be built and defined. Even if already some guidelines are emerging.

Community power is essential in the success of Web3-related projects and we should stop talking about consumers.

The consumer no longer exists, long live the community

Community power is essential in the success of Web3 related projects. This is what a player like Nike understood very well with the acquisition of the RTFKT studio in December 2021. The Oregon giant was thus able to access a powerful Web3 community, allowing it to quickly build legitimacy. in this ecosystem.

For Benoit Pagotto, one of the co-founders of RTFKT, brands must stop talking about consumers, this term should be abolished in Web3. It is no longer a question of selling a product or service to a customer but of ensuring that he becomes a member of the community and therefore of the brand or the product. The brand and the community become one in this ecosystem.

Yuga Labs made a fortune with their NFT Bored Ape Yacht Club collection. - © Bored Ape Yacht Club
Yuga Labs made a fortune with their NFT Bored Ape Yacht Club collection. – © Bored Ape Yacht Club

For its part, Yuga Labs, the company behind the NFT Bored Ape Yacht Club (BAYC) collection, has become a real Web3 brand thanks to the power of its community. This is made up of a multitude of stars from the world of sport, cinema and even music. They have made the collection of these NFT monkeys shine around the world. BAYC by Yuga Labs has thus become a brand in its own right. The company is also in the process of creating its own metaverse (Otherside). We could potentially even compare it to the Facebook of 2005.

Rethinking its intellectual property policy

One of the key elements to federate the community consists in giving it access to the intellectual property (IP) or to the image rights of the NFTs collections. By doing this, customers/consumers become co-owners of the brand or sign. They become much more than just a source of income. This shared ownership can be a tremendous accelerator for creativity. Artists like Eminem and Snoop Dogg used their BAYC NFTs in their latest music video. All for the benefit of Yuga Labs, which benefits greatly from the media coverage generated. Another NFT BAYC owner had even started a fast food chain using the image of the monkey he owned. Here are some examples of how NFTs are used by their owners and contribute to creating value for the brand as a whole. Another example with Doodles, which saw the launch of a coffee brand, Coffeedoods, thanks to the support of its community and by using the codes of this NFT collection.

Coffeedoods is a subscription coffee brand through the acquisition of an NFT. - © DR
Coffeedoods is a subscription coffee brand through the acquisition of an NFT. – © DR

Coffeedoods is a subscription coffee brand through the acquisition of a specific NFT in order to receive coffee every month. Doodles has just raised $54 million to be valued at over $700 million. Sharing intellectual property with its community will allow the emergence of new brands and commercial players.

Without Storytelling we cannot exist in Web3

With Web3, brands and retailers are becoming media more than ever. They must have the ability to deploy the right “storytelling” necessary for the creation of the community. It is the first link between the brand and its audience. The metaverse in this sense will allow the creation of limitless paradigms in which the imagination and creativity will be able to express themselves without constraint or friction. The metaverse makes it possible to go beyond the notion of time and space.

Nike has gifted this Genesis Hoodie to RTFKT's NFT Clone X holders. - © Nike
Nike has gifted this Genesis Hoodie to RTFKT’s NFT Clone X holders. – © Nike

Nike has launched a huge campaign for RTFKT’s NFT Clone X holders. At the end of July, the owners of these NFTs were able to retrieve a new NFT representing a virtual hoodie, a Genesis Hoodie. This element makes it possible to merge real and virtual while giving a new dimension and functionality to clothing.

In addition, Genesis Hoodie owners will be able to receive the same sweatshirt in the real world. And this sweatshirt can come to life thanks to augmented reality filters. The avatar then becomes a real extension of oneself…unless it’s the other way around.

Enable test and learn mode

Last and most important point, to embark on Web3 and the metaverse in 2022 is to accept failure. You have to have a willingness to learn. Everything is still under construction. Brands need to go there with an open mind. The best way to understand what Web3 may mean for tomorrow’s commerce is obviously to experiment for yourself. But for large groups, there are many issues to address before even setting out to conquer virtual worlds, whether in terms of regulations, data management, intellectual property, decentralization and much more. obviously from the business model.

The tech world is organized around the Web3

This is why the groupings of technological players such as Nvidia, Meta, Microsoft, Mastercard, Samsung, Intel but also Ikea within the framework of the Metaverse StandardS Forum should be followed closely. The same is obviously true for the Open Metaverse Alliance for Web3 (OMA3) bringing together The Sandbox, Decentraland, Upland and Dapper Labs. These groupings demonstrate that the Web3 world is becoming more structured, which will facilitate experimentation by traditional brands.

The Open Metaverse Alliance for Web3 (OMA3) will help structure Web3. - © DR
The Open Metaverse Alliance for Web3 (OMA3) will help structure Web3. – © DR

The foundations of the Internet of tomorrow and metaverses are currently being written. In this paradigm, brands will have to invest in communities, storytelling, tokenization while rethinking the notion of ownership around the concept of decentralization.

Nicolas Diacono - © Echangeur by BNP Paribas Personal Finance
Nicolas Diacono – © Echangeur by BNP Paribas Personal Finance

About the Author :

After several experiences in biotechnology start-ups and then in an innovation consulting firm, Nicolas Diacono joined Echangeur by BNP Paribas Personal Finance. With more than ten years of experience in technological monitoring and forecasting on digital trends, he now supports Echangeur’s international clients in their strategic thinking.

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Brands in the age of Web3 [Analyse]


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