Brands En Masse Will Embrace NFTs And DAOs To Drive Early Product Feedback, Personalization And Customer Loyalty In 2022
One of the 6 Bold 2022 Retail And Retail Predictions I made at the beginning of the year was that “Brands En Masse Will Embrace NFTs And DAOs To Drive Early Product Feedback, Personalization And Customer Loyalty In 2022.” You can read the full analysis below, but I wanted to document the stories throughout the year that support the trend, and there are a lot of them.
2022 Retail NFT Tracker - Calendar Of 2022 Stories About Retail NFTs And DAOs
Walmart filed patents that suggest it is launching it’s own cryptocurrency (think loyalty rewards, buy now pay later financing, etc.) as well as collections of NFTs. (1-18-22)
Gap is launching its collection of NFTs as well, with a focus on a more “energy-efficient blockchain. (1-19-22)
StockX launches NFTs that correspond to physical products as part of their NFT Vault. Gives access to product at any time as well as membership privileges. (1-20-22)
Paris Hilton is set to drop her first NFTs with Super Plastic, a vinyl toy and digital collectibles company backed by Google Ventures and Justin Timberlake. “I think it’s important for people to not only be in the physical world but also to be in the digital world,” she said. “I see this is as the future of partying, going out, interacting with people and being social.” (1-20-22)
Carrefour buys land in virtual gaming world The Sandbox (Retail Tech Innovation Hub, 1-31-22)
Fashion retailer, PrettyLittleThing, has entered the metaverse with the introduction of its first ever digital model. (Retail Tech Innovation Hub, 2-3-22)
GameStop plans NFT marketplace with Immutable X partnership (Retail Dive 2-3-22)
McDonald’s files 10 patents around dining in the metaverse. Forget a steak in the Matrix. Have a Big Mac instead. Links to ordering real world “McDelivery” inside the metaverse worlds. (2-18-22)
Paris Hilton is hosting a virtual fashion week in her Paris World metaverse in Roblox. (2-18-22)
McDonald’s files 10 patents around dining in the metaverse. Forget a steak in the Matrix. Have a Big Mac instead. The patents link to ordering real world “McDelivery” inside the metaverse worlds. (2-13-22)
Gucci bought a plot of land on in virtual metaverse world The Sandbox called the Gucci Vault (2-14-22)
Victoria’s Secret’s recent trademark filings hint that its storied fashion show may come back, this time in the metaverse. (Business Insider 2-15-22)
CVS has trademarked its properties to offer its pharmacy and health clinics in the metaverse. CVS’ filing includes the concept of offering “non-emergency medical treatments services, wellness programs, advisory services related to nutrition, providing health lifestyle and nutrition services… and counseling.” (CNBC 3-3-22)
This spring American Eagle is going to debut on Roblox to promote "Members Always" collection that is inspired by vintage and prep styles and emphasizes inclusivity, according to a company news release. The retailer is also offering role-playing game to create a virttual AE Members Always Club to explore shopping virtually with a partnership with Livetopia, which is a top-10 game on Roblox with more than 1.5 billion visits to date. (CNBC 3-4-22)
Tokens.com has announced that Cavalli, Dolce & Gabbana, Elie Saab, Etro, Jacob & Co., and Tommy Hilfiger are participating in its first ever Metaverse Fashion Week on Decentraland the 24th-27th March.Brands will host virtual fashion shows with avatar models, runways, pop-up shops, and even interactive afterparties. “Visitors will also have the opportunity to purchase NFTs and attend e-talks and seminars; it’s expected to be much bigger than Decentraland’s Deadmau5 concert, which attracted more than 40,000 virtual visitors.” (Retail Tech Innovation Hub 2-28-22)
Skechers has leased the equivalent of 5,000 square feet in the fashion district of the Decentraland metaverse from Tokens.com. (RTIH 3-8-22)
Perfect Corp is taking its virtual try on technology to create wearable NFTs. (RTIH 3-11-22)
Jose Cuervo has opened its first distillery in the metaverse in Decentraland. “As experts in creating experiences for distilleries, the opportunity to create a distillery in the boundary-less metaverse, without the constraints of real life is a first-of-its-kind for Bompas & Parr and the world,” said Harry Parr, co-founder, Bompas & Parr. (Bandt 3-28-22)
Gucci announced that it is accepting cryptocurrency starting at 5 stores. (Vogue Busines 5-3-22)
Gucci shared via its Gucci Vault Discord server that owners of two of its NFT projects — SuperGucci and Gucci Grail — would be able to pre-order a Gucci collection before the general public. We predicted in January that NFT’s would be used to bridge Web3 community and physical retail pre-sales and Gucci is one of the first to do it. (5-6-22)
Forever 21 and Barbie have launched in-store, online and in the metaverse on Roblox. (6-2-22 Business Wire)
DC licensor and toy maker Mighty Jaxx is using NFTs to give access to owners the ability to buy physical manifestations of their NFT artwork. It’s a smart blending of digital and physical ownership that increases the value of each. (CNBC 6-24-22)
Full Research: Brands En Masse Will Embrace NFTs And DAOs To Drive Early Product Feedback, Personalization And Customer Loyalty
You’ve heard the stories. Someone bought a pixelated JPEG online and resold it for tens of thousands of dollars. But NFTs are much more than buying and selling JPEGs (and my Web3 friends would be appalled by such a simplification). NFTs are basically a deed to a digital ownership. Ownership of anything. Yes the original art of a JPEG, but also a digital authentication of your physical product, a membership in a community like a customer loyalty program, or an earned perk. Once you think of an NFT as a virtual deed or ticket to an experience, all kinds of new shopper offerings unlock.
And we began to see experimentation in late 2021. Macy’s offered limited edition NFTs to own the artwork for Thanksgiving floats that sold for between $15-300k!!! Nike bought a company that makes virtual NFT products and opened up virtual Nikeland on Roblox, where enthusiasts can buy and discuss virtual goods - a very clever way to gather and measure shopper feedback before products are manufactured. Expect to see lots of brands flood the dominant digital worlds like Roblox with branded goods sold on the open market, and at a much greater price than you might think.
Fred Segal launched Artcade, a “dynamic retail experience” that includes an NFT gallery on digital wall displays, physical and digital products for sale, and a streaming studio. Shoppers can buy NFTs on Coinbase. “The metaverse is going to happen in one way or another,” said Jeff Lotman, the CEO and owner of Fred Segal. “The idea of being involved in having a Fred Segal store in that world makes sense, because we’re always a place showing things that are really cool.” Even Forever21 launched a virtual fashion store in Roblox. This is definitely going mainstream.
But where this gets really interesting is when digital and physical worlds collide. Those who own a CocaCola NFT get a cool-looking branded CocaCola cooler. Fanatics in 2022 will open Candy Digital, a digital marketplace of virtual items licensed by sports leagues. What happens when owning that NFT gets you access to a real world athlete signing event, free spring training access, or early access to tickets for your favorite team?
As retailers look to cater to younger, digital audiences and plug into the multi-trillion dollar cryptocurrency wealth that has been created, will Chanel, Gucci or LVMH give early access to product launches and exclusive in-store events to NFT holders? Answer: yes. NFTs will become status tickets in the physical world and be thought of as much as membership into an exclusive community as much as virtual art or product owner. NFTs will become a loyalty club, but much more exclusive so as to retain value. Consider it Willy Wonka’s Golden Ticket of sorts.
And since brand is all about community, in 2022, I predict that we will see a new type of “virtual-first” brand cross-over into physical world goods - and one that shows the escape velocity of the early days of Supreme. Certain NFTs allow you to leverage the artwork to create your own products, like owning the trademark. Bored Ape Yacht Club members are using their Apes to launch beer brands, children’s books, comic books and even clothing. Right now this is the field of experimentation. 2022 is when we see the trend go pro and generate sizable revenues.
Soon we will see this in collective organizations driven by members and perhaps in a new structure called a Distributed Autonomous Organization or DAO, whereby ownership of the company is via NFT and all decisions are made collectively to the owners. Can a world where value is often driven by exclusivity and rarity in access be driven by democratic principles? DAOs are much more than one person - one vote. Members can have outsized ownership stakes based on contribution, leading to both elements of leadership and community driven principles. I predict 2022 will see the year of the first successful 2022 DAO brand.
Digital and physical worlds are colliding. Are you ready? Book a Demo with Raydiant!
