Consumers are spending more time and money in digital realities, aka Web3, and top brands are taking note. In addition to brick and mortar and online sales, they now need to transform their products and services for a whole new marketplace: the metaverse.
NFTs are thought to be Web3’s gateway to traditional commerce, and the market for transactions in the metaverse is expected to reach $6.1 billion in 2022 and nearly $42 billion globally by 2026. It’s a no-brainer for brands to be involved–unlocking this new market allows them to “tokenize” physical products and services, and connect with the next generation of consumers.
No one wants to be late to this party. Let’s take a look at some of the fun ways brands are exploring this lucrative (and still largely untapped!) market.
In perhaps one of the biggest splashes made by a retailer in the NFT space, Nike acquired RTFKT (pronounced “Artifact”) Studios, which it calls “a leading brand that leverages cutting edge innovation to deliver next generation collectibles that merge culture and gaming.”
And it’s working. Nike’s newest collection, known as CryptoKicks, is raking in between $4,000 and $9,500 per virtual pair–and some pairs have sold for well over six figures.
NFTs aren’t just for the fashion giants–CPG brands are jumping on the bandwagon, too. General Mills, for example, auctioned ten NFTs to promote the comeback of Dunkaroos, a popular snack for nineties kids.
Budweiser, aka the King of Beers, joined the NFT party with a collection of 1,936 NFTs — representing the year 1936, when the first Budweiser can was made. Called the “Heritage Collection,” the unique digital beer can designs sold out in under an hour.
The fashion house has partnered with Mythical Games to launch an NFT collection in their flagship title, Blankos Block Party. The limited-edition, limited-quantity Burberry Blanko — a shark named Sharky B — is an NFT that can be purchased, upgraded, and sold within the Blankos Block Party marketplace. Burberry also has its own branded in-game NFT accessories, including a jetpack, armbands and pool shoes, which players can apply to any Blanko they own.
The fast food giant took a novel approach to its foray into the NFT sphere: it used QR codes tethered to around six million meal boxes. Customers could scan the QR codes to unlock a digital collectible–even bonus NFTs.
Retailer GAP has joined the NFT game with GAP Threads: digital collectibles of their iconic hoodies. And it’s just the beginning, they say. In addition to buying, trading, and selling, GAP wants to integrate Gap Threads into charitable causes and collaborations, games and metaverses.
In perhaps one of the most mass-market-friendly NFT forays, Mastercard announced a partnership with renowned football coach and Mastercard global ambassador José Mourinho to launch its first NFT. Akin to a lottery, Mastercard holders in the United Kingdom who enter are eligible to win the digital soccer ball inscribed with Mourinho’s autograph–no tech-savvy needed.
We like it a lot
Brands’ NFT initiatives have the double advantage of both raising a brand’s profile and also bringing Web3 to a mass audience. Win win.
Drop us a comment with your favourite brand NFTs–the more surprising, the better!