The year 2021 will be remembered as a ground-breaking year for NFTs to gain the brand's trust. Everyone from Disney to Coca-Cola to Ticketmaster to the NBA released NFTs this year. European eyewear conglomerate EssilorLuxottica, Ray-Ban's parent company, made this revolutionizing move that will further the process of popularising NFTs for conservative business people as well as artists. This year Ray-Ban and digital artist Oliver Latta (@extraweg) collaborated to create the first-ever pair of NFT Ray-Ban Aviators to raise charity funds for the Italian art trust. With Ray-Ban's entry into NFT, the future of fashion looks extraordinary while also opening doors for other brands to follow the course.
NFT, i.e., "non-fungible token," is used to describe products or goods that are not interchangeable with others due to their distinct qualities. Dollars, for example, are fungible because you can always swap ten one-dollar bills for ten dollars. Similarly, collectibles are "non-fungible," which implies that each object has a distinct value.
NFTs have some distinctive characteristics:
1. Each non-fungible token has a unique owner who can be easily identified.
2. It cannot be manipulated in any way.
In a nutshell, NFTs tap into a deep desire in humans to belong, be a part of a society and express themselves through their goods. The Ethereum blockchain has NFTs. With a market value second only to Bitcoin, Ethereum is the most commonly utilized blockchain on the planet. Ethereum accounts for the majority of the NFTs market. Although we haven't seen the full scope of what can be converted into an NFT, a few key industries are quickly adopting NFTs.
Ray-Ban's entry into NFT has opened the virtual doors to connect its customers with metaverse. Created in 1936 by Bausch & Lomb, it is famous for its Wayfarer and Aviator sunglasses lines. Oliver Latta, popularly known for his unique 3D motion designs and thoughtful artistry, is the right man to collaborate with Ray-Ban.
The proceeds from the NFT auction were intended to benefit trusts, whereas buyers who participate in the auction could use the proceeds to invest in cryptocurrency at any time. With the success of this collaboration, Depicting a perfect example of innovation that's accessible, Ray-Ban is gearing to release more NFTs in the future.
Other Brands have begun to experiment with NFTs as well. To commemorate the year of its inception, 1893, Pepsi has released the Mic Drop Genesis NFT, a collection of 1,893 pieces of NFT art. Many more brands are entering the NFT market, and by 2022, there will be an explosion of brand-related NFTs.Looking into a few industries and brands that ventured into NFTs in 2021,
1. Virtual land plots - Decentraland provides virtual land plots for investors to develop. Play-to-earn NFT game concepts, such as digital horse racing, have evolved.
2. NFTs for the affluent – Gucci and Jacob & Co are among the luxury companies that have entered the NFT industry.
3. NBA Top Shot and DraftKings are both cashing in on digital sports collectibles.
4. NFTs as proof of ownership in the real world – Nike plans to build NFTs that serve as proof-of-ownership over real-world sneakers as counterfeit shoes flood the market.
5. Musicians ranging from Snoop Dogg to Kings of Leon sell NFTs of their music and art.
The success and lessons learned by brands who got in early will only benefit them in the future. There are many more possible uses for the NFT collectible, which brands recognize. More firms will utilize NFTs to develop brand loyalty in 2022 by providing fans with special discounts and promotions that aren't available through standard distribution methods.
Industries that experienced revenue losses due to the pandemic (and some still do) will rely on digital opportunities such as NFTs to generate new revenue and raise brand recognition. Brands can pave the way by employing the right specialists in the industry to expand knowledge of NFTs, what they are, and how to use them so that their customers can understand.
Perhaps—or perhaps not.
Here's what you need to know about NTFs as a brand enthusiast, including how to use them to build your business.
Through NFTs, brands can make better interactions with customers and market their brands digitally.
For example, Marriott's Marriott Bonvoy travel program takes advantage of NFTs. Three artists collaborated to produce three different NFTs inspired by travel experiences.
For example: If you want to broaden your audience and tap into new markets, lookalike audiences on Facebook aren't your only choice. Brands are targetting a younger audience who are interested in innovative technologies like NFTs.
NFTs thrive on identity, traceability, and ownership. So combining it with the brand value is a one-of-a-kind offering and a natural progression. It opens up new possibilities and foreshadows the future of collecting, where blockchain technology will set the standard for provenance.
Consumers want to patronize businesses that give back. In fact, 84 percent of millennials say they prefer to support brands that are open about their principles and have a trustworthy culture. They aren't looking for promises; they are looking for results.
Because NFTs are still in their early stages, now is the most significant time for marketers to get in. It's a great way to catch people's attention and build a fan base. You can make limited-edition memorabilia to remember important events and holidays and use it in your holiday marketing campaigns. You can give them out to the first X number of customers or auction them off separately.
Cookies are no longer alive. In a few months, the way we advertise and the market will be irrevocably transformed. The transition to the new online era entails increased privacy and a reduced ability to reach clients in the same way we do now. Google, Facebook, Instagram, and TikTok will most likely cease to exist in their current form. It reduces our need for extensive marketing channels to attract clients, which we've relied on for years. We'll have to look for new opportunities instead. How can we do that?
1. By creating first-party customer communities and experiences (likely inside the metaverse).
2. By identifying ad potential within games and metaverse real estate.
3. Via collaborations and partnerships with creators to utilize their audience.
This is going to be a major, massive shakeup, and it'll happen sooner than you think.
While you can make NFTs for free, you'll most likely need to spend money on promoting them. The price of collaborating with a well-known artist might run into the hundreds of thousands or even millions of dollars. You do not, however, have to spend so much money. Expect to pay between a few hundred and a few thousand dollars depending on the magnitude of the campaign.
To conclude, NFTs give brands a new opportunity to communicate with their customers, raise awareness, and even promote new product lines. The year is marked with innovations and collaborations. From Crocs that would introduce bio-based material croslite footwear to Ray-Ban's entry into NFT, 2021 has successfully created a buzz in the market. Are they, however, here to stay, or are they merely another marketing blip? Only time will tell!. According to what we've seen, big brands are utilizing NFTs in novel ways, so it's worth paying attention to.
We at OpenGrowth, are committed to keeping you updated with the best content on the latest trendy topics from any major field. Also, both your feedback and suggestions are valuable to us. So, do share them in the comment section below.
*Note: The content published above was made in collaboration with our members.
A believer of good things and pursuer of diverse avocation, she is a fiction lover and a simple writer. Supriti has a number of professions to her list and she feels challenges are the only answers to failures.