Brands are becoming more “open” to cryptocurrencies, as evidenced by the growing popularity of cryptocurrencies
Increasingly accepted worldwide. Besides, the NFT ecosystem has also made important progress in the past two years. From a niche technology model to a multi-billion dollar industry, NFT will have dramatic social and cultural impacts in the years to come.
As NFT gained much attention from the community, NFT’s applications also increased markedly. Content creators and intellectual property rights holders have realized the potential to monetize their IP in ways never. Now it’s not just digital artists or NFT traders who profit from the non-replaceable capabilities of the NFT, but comedians, writers, athletes, or anyone. Given the incredible value-creating potential of NFT, we must have an overview of NFT’s applications in the web3 space and web2 to see how NFT is evolving—increasingly used as a marketing tool for businesses to build connections with consumers in both physical and digital media.
How is NFT applied by brands?
The practical applications of NFTs make them the perfect tool to bridge the gap between web2 and web3. Well-known brands have begun NFT testing by rolling out encrypted versions of their real-world products and solutions.
After launching its first NFT collection in 2021, US beverage giant Coca-Cola released a new NFT collection on “International Friendship Day” to continue its web3 journey. The collection will be airdropped to anyone holding an NFT out of a total of 4,000 NFTs issued by the brand since joining Metaverse in July 2021. Each NFT has a unique “share to reveal” function where the artwork will only be revealed after the original owner has shared it with a friend.
There are currently a total of 3,600 holders of the NFTs, and they are being sold with a floor price of 0.01 ETH. Coca-Cola NFT owners will receive certain rewards and perks, including Coke Studio-powered experiences, participation in in-game events, and early access to premieres. Coca-Cola Creations limited edition product.
Samsung partnered with Nifty Gateway to develop the industry’s first intelligent NFT TV platform, allowing users to “view, display, and interact with NFT” on Samsung’s premium 2022 TVs.
Samsung Electronics recently partnered with Theta Labs to operate the built-in NFT ecosystem for its new Galaxy mobile phones. Its goal is to provide a gateway between the virtual and real worlds that allows users to interact and use NFT from different partners. Through this agreement, Samsung is innovating the user experience and using NFT as a reward for customer loyalty. This could be a feature that leads to the widespread adoption of NFT.
In February 2021, Samsung also announced its first virtual store, a digital version of its flagship store in New York City on decentralized, called Samsung 837X. It’s an immersive experience that customers and fans can discover through quests, NFT prizes, product discounts, even participation, and live performances. To get full access to features, users need to design their avatars, including hairstyles, clothes, and accessories.
In December 2021, Adidas announced its first collection combining digital and physical items sold as NFTs with collaborations from some of the most famous names in the NFT world, such as Bored Ape. Yacht Club, gmoney, and Punks Comic.
The collection, called Into the Metaverse, includes virtual wearables that buyers can use on online platforms and actual clothing to go with it. The NFT Collection goes on sale on December 17 for 0.2 ETH. However, NFT owners’ digital and physical wearables will be available in 2022. adidas buys NFT Bored Ape Yacht Club, Ape #8774, as part of the launch. Besides ownership of the APE usage rights, BAYC offers several other perks to owners that Adidas will have access to.
Adidas has also gained a virtual estate in The Sandbox, where it plans to create “exclusive content and experiences”.
The company is positioning the launch of the NFT to engage with fans and explore “the forefront of creativity.”
In April 2022, NIKE launched its first NFT collection called CryptoKicks. The collection includes 20,000 NFTs, including one designed by artist Takashi Murakami that was purchased for $134 thousand.
Customers can purchase a “skin jar” to customize their Dunk by changing the color of the Swoosh, sole, laces, and tongue. Studio RTFKT designed this collection after Nike gained the company in December. Nike hopes its acquisition of the studio and the NFT collection will help them claim its first forays into the projected industry. They were predicted to be a super-billion dollar economy in the coming years.
Up to now, Lamborghini has launched two NFT collections. The first set is a series of digital postage stamps, and the second is a set of digital space keys. They are preparing to launch the following collection in cooperation with NFT Pro and INVNT.ATOM. This collection will be a much larger project and part of a more significant effort to cement the company’s reputation as the ultimate luxury auto brand among young specialists.
From August 2022 to March 2023, Lamborghini will launch four NFT series each month for four consecutive days and will be available for purchase in just 24 hours. The fourth NFT will be a limited edition of only 63 pieces. It’s an intelligent approach for crypto-savvy fans, as the drop’s theme this time is based on a reasonably popular meme: “wen moon? wen Lambo?”
Other luxury car brands are also starting to heavily advertise the NFT as Bentley will introduce the first NFT kit in September, while McLaren is also planning to make a collection. Audi launched the NFT collection in May 2022, and Porsche auctioned a car sketch as an NFT.
Last year, Gucci teamed up with Superplastic, the world’s leading creator of animated celebrities, vinyl toys, and digital collectibles, to launch SUPERGUCCI. Superplastic also launched the collection with Bored Ape Yacht Club and raised $20 million in a funding round in October 2021.
On the day of its debut with Superplastic, Gucci promoted the digital Vault, an experimental site that combined a historic digital vault with lab-like creativity.
Combining the NFT launch with the sale of vintage items shows the interplay of innovation and tradition adopted by this iconic fashion house. It emphasizes that welcoming new technologies does not require discarding old methods of commerce but rather providing new opportunities to improve the consumer experience.
NFT Louis Vuitton
To celebrate the brand’s biennial birthday in August 2021, Louis Vuitton, the brand of luxury and haute couture lovers, has launched Louis: The Game, which allows users to accompany them. A character named Vivienne travels through the virtual world and rewards NFT players with historical postcards.
Louis: The Game currently has over two million downloads and is available on Android and iOS. Louis Vuitton’s NFT game constantly evolves and expands to add exciting new features, such as celebrity NFTs and recent locations. The brand is targeting new and younger customers with a new approach to its established brand. And with innovative digital applications of its iconic style, Louis Vuitton is doing a great job shaping the art and the NFT gaming scene.
Lacoste has partnered with Minecraft to launch the first NFT project called UNDW3, which is described as “a journey that allows community members (Lacoste) to experience fashion in a new creative way”. The NFT collection features an image of an alligator, connecting the brand’s alligator logo to the web3. The collection of 11,212 NFTs is part of the L1212 polo model, currently listed at a floor price of 0.13 ETH/NFT.
With the release of the UNDW3 project, Lacoste aims to be the bridge between physical and digital retail. In addition to owning an amazing NFT, UNDW3 holders will join an exclusive community of Lacoste fans with access to material and digital benefits. Holders will also have a say in the future of the brand. UNDW3 proved to be a success when the collection was sold out.
McDonald’s released its first NFT collection to celebrate McRib’s 40th anniversary. While McRib is undoubtedly a popular product among official McDonald’s products, celebrating MCrib’s return with an NFT rewards campaign is unprecedented for the food giant.
McDonald’s broadcast the NFT to fans on Twitter through a lottery draw–10 lucky winners received exclusive McRib NFTs to add to their NFT collection.
The campaign can be a test to see how the NFT affects a company’s social media following and engagement. If the results are positive, the movement may consider expanding the campaign, using NFT in marketing strategies.
The release of McRibs NFT is not a surprising move, as the McDonald’s marketing team has been following the movements of the NFT space as they have previously posted trolls of crypto accounts on Twitter.
NFT Burger King
The fast food giant has partnered with NFT marketplace Sweet to launch the Keep It Real Meals NFT project in September 2021. The campaign featured celebrities like Cornell Haynes Jr, Chase Hudson, and Larrissa Macado. NFT holders can call or chat with stars and get a burger for a year.
To collect NFTs, users can scan a QR code attached to six million food boxes, one of the game’s three NFTs. When all three NFTs are collected, the customer receives the fourth NFT to create a digital collection. In addition, users can exchange these game pieces with others on the Sweet platform.
NFT Taco Bell
Taco Bell launched a series of 25 taco-themed NFTs in early March 2021. The original NFTs, priced at 0.001 ETH, were sold out in thirty minutes. Resale prices have skyrocketed in some NFT markets, with an NFT selling for $180,000.
According to Taco Bell’s announcement on Rarible:
“100% of the profits from this sale will be donated to the Taco Bell Foundation, Inc. to help young people discover and pursue their careers and education.”
In January 2022, LVMH-owned Hennessy released the first NFT representing physical and digital ownership of the first and last bottles of wine (1 and 250, respectively) of Hennessy 8, a limited edition of the Cognac house. NFT is sold on BlockBar’s marketplace for 70.47 ETH.
NFT buyers also own the actual bottle of wine, which Hennessy will send to them upon request. Owners can also engrave a personal message on the carafes and visit the Hennessy estate in Cognac, France.
The NFT sale combines the sale of custom-made physical chests with brass keys designed by artist Arik Levy. There is also a commemorative sculpture, a Baccarat engraved and blown carafe, a pipette, a cork case, and four wine-tasting glasses.
Hennessy has another IRL NFT digital initiative called Cafe 11, a partnership with leading DAO organization Friends With Benefits ($FWB). The DAO approved the partnership proposal through an off-chain vote on June 8. Collaborations between big brands and DAOs are likely to become more and more popular as brands look to break into decentralized communities.
In September 2021, Bacardi announced the launch of its 5-year Cask Finish Series with the limited edition Reserva Ocho Sherry Cask Finish. This is also the first NFT product in a series of 5 NFTs that Bacardi plans to release by 2025.
Designed by photographer Cam Kirk, the first Bacardi NFT was launched in partnership with the NAACP to assist black-owned establishments in applying for liquor licenses.
In October 2021, Bacardi released another NFT designed to support the brand’s Music Liberates Music program, launched in 2017 to help to aspire artists gain exposure and build their careers.
The new NFT was created in collaboration with Caribbean producer Boi-1da. Together they selected musicians Bambii, Denise De’ion, and Perfxn to create Caribbean-inspired soundtracks and then minted NFT mixtapes for auction.
Snoop Dog x Eminem
Bored Ape Yacht Club made its global television debut last week at the MTV Video Music Awards in a virtual performance performed by rap icon Eminem and Snoop Dogg on the song “From the D 2 the LBC”. Eminem and Snoop Dogg use the IP of Bored Ape Yacht Club at VMA when Yuga Labs, the company behind BAYC, provides them with an NFT ownership license to use images of the NFTs they own. This year’s award also has a metaverse category, although no blockchain platform was nominated.
The NFT offers many valuable benefits as a unique representation of physical and digital goods on the blockchain. NFT’s use cases are still in their infancy, but not only games will benefit from this, but businesses and casual players as well.
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