How retailers and brands can use NFTs for themselves

Benjamin Birker, head of the retail and consumer goods industry at T-Systems MMS

T-Systems MMS

Benjamin Birker, head of the retail and consumer goods industry at T-Systems MMS

T-Systems MMS

NFTs can help recharge tags. They provide an opportunity to inspire young target groups, to ensure innovative brand interaction and thus create loyalty. Businesses should not miss out on these opportunities.

By Benjamin Birker, head of the retail and consumer goods industry at T-Systems MMS

The “first-mover” companies in the NFT field made headlines around the world, and the price development made some people rub their eyes. No wonder: according to the “Research and Markets” report, the NFT market was worth $ 41 billion in 2021. The global market is expected to reach $ 211.72 billion by 2030. Nevertheless, it is important to examine the opportunities with the right action, for the current crises and the initial excitement have also left their mark on this market.

So how have companies used NFTs so far, and what is conceivable in the future?

Who is the target group?

Although a large portion of the population in the Western world has not heard of NFTs, NFT drops from well-known companies regularly generate a great deal of attention. Younger and tech-savvy consumers in particular are increasingly engaging with the topic, which is already evident in the large number of online articles, discussions on social media & events related to Metaverse & NFT.

In addition, the NFT community is already huge. Through NFT projects, companies can access this community and benefit from the enormous size and willingness of members to interact. Another booster in the development of the target group is the social networks, which is evidenced by the renaming of Facebook in Meta, as well as the soon to be released NFT collection from TikTok.

Speaking of Meta (verse)

By using virtual reality, resellers can allow their customers to interact with their brand in a unique, immersive environment that tells the story of a brand and sets it apart from others. For example, Dior Beauty set up its own virtual Christmas store, displaying limited edition gift items and products in the Atelier of Dreams. In general, luxury brands are pioneers in the use of virtual stores.

Brand Heat

Deciding on an NFT project not only allows a company to position itself as a digital leader, but also to increase its own brand interaction tremendously. While NFTs as products may have nothing to do with the actual product range, companies can use them to please existing customers and attract the attention of new potential customers. In order to reach the current NFT community in the best possible way, it is advisable – especially for NFT newcomers – to enter into collaborations with leading NFT influencers and projects.

Adidas, for example, worked with leading projects and influencers Bored Ape Yacht Club, PUNKS Comic, & gmoney for its “Into the Metaverse” NFT collection and was able to directly attract a great deal of community attention for its collection. So it is not only the new technology, but also the collaboration with creators that can break new ground for companies.

Limited edition despite delivery bottlenecks

Due to supply bottlenecks, some companies are currently unable to meet the high customer demand, for example the bicycle market where components are lacking. Schwalbe (Ralf Bohle GmbH) has been working on limited collections of bicycle tires for some time, including in collaboration with the stars in the industry.

The goal is to be an example in the digital world with particularly unique products and to increase your own reach significantly outside the specialist trade. However, it has not yet been revealed whether such bicycle tires can also be purchased in virtual stores in the future for the sake of real supply bottlenecks.

New loyalty benefits and a new community

In addition to brand interaction and awareness, NFTs are also well-suited for creating exclusive communities and customer loyalty programs. For example, Dolce & Gabbana “gave the owners of the” Collezione Genesi “NFT collection physical equivalents to virtual clothing and jewelry, giving them free access to Dolce & Gabbana’s couture shows for a year.

In particular, the exclusivity of the seats in such programs makes them so attractive. Customers can be inspired and retained. This also underscores Starbucks’ intent to create a global digital community around coffee with an NFT loyalty program.

income opportunities

In addition to the previously mentioned options for NFTs, the sale of these also allows for an additional revenue stream. The revenue potential from NFT sales may still be relatively small for most companies in the retail and consumer goods sector compared to the primary business revenue, but the market is growing strongly.

Especially with the expected sharp increase in Metaverse user numbers, the relevance of NFT sales will continue to increase. For example, users can wear NFT sneakers in Metaverse and actually use them actively.

Have courage!

NFTs take the opportunity to take a company’s brand interaction to a new level. Due to the large and rapidly growing potential of NFTs, companies should weigh the many possible uses and find the best individual solution for themselves. And with all the ideas, there are important decisions to be made when dealing with the technologies. Although the topic is new, NFT may be a smart move for the future, and it’s better to be there and help shape it than to miss the trend.

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