Maddie Raedts Founder and CCO at i’ve got || Global Head of Social Fashion & Luxury at MediaMonks || Forbes 30 Under 30.
At the end of last year, the market of non-perishable tokens reached a value of 41 billion dollars. Seemingly out of thin air, unique digital objects linked to blockchain technology have exploded. Naturally, the fashion and luxury industry – known for creating innovation and changing culture to speak for the season – decided to do just that. Go inside. In doing so, breaking out of business as usual and into a new playing field was key. Web3 is one of the most popular new kids on the block these days. It’s something we’ve helped clients with at Media.Monks.
Web3 represents the next era of the Internet. It’s about reshaping the inner workings of the web and changing how data is stored, shared and owned with blockchain. “In theory, a blockchain-based web could break the monopoly on who controls data, who makes money, and how networks and corporations operate,” the paper’s author explained. Harvard Business Review.
In practice, many leading brands are relying on Web3 for community-building, which is central to the customer journey in the virtual age. We’re seeing more and more fashion brands adding digital layers to augment existing collector communities by offering NFTs that consumers can use to dress up their avatars in the virtual world or earn exclusive drops in the real world. NFTs target groups of people, large or small, who find value in a particular project or product—essentially creating a new kind of community space for enthusiasts, both online and offline.
After a long hiatus from in-person events, I think it’s safe to say that people are hungry for real-world connections. Many of those working to bring Web3 to life know it. They are focusing on creating experiences that can exist in both the virtual and physical worlds—and the fashion and luxury industry is getting involved in a big way.
Despite setbacks, brands prepare for the digital future.
Despite the crypto gold rush, many people’s excitement, energy, and investments in this space have been dampened by the recent crypto crash. We’re seeing more brands ban stunt-like NFTs, rethink their alternate strategies, and stop employing Web3.
A safe bet? for sure.
It is important to remember that it is a decentralized financial world. Flexibility has a history. For example, Bitcoin has fallen before, but has bounced back. However, I think the crypto crash is different this time because many other industries, like fashion and luxury, are now also involved in the Web3 space.
Industry experts argue that now is the time to simply ride the storm and educate, innovate and build on the road. Don’t quit your efforts cold turkey, but strategize for the future. they are Likening the current situation to the dot-com bust decades ago, it has ultimately made brands that focus on ensuring long-term strategies more effective.
The front runner brands that are experimenting in this space don’t seem to be holding back, rather they are. Looking forward to the future. They are carefully analyzing their investments in NFTs and Web3 and focus on building long-term strategies. This means fewer PR stunts and more meaningful use cases. The NFT community has a short attention span and quickly moves on to the next thing. My advice is to be agile and experimental, but build now when the bull run starts again.
why? Because Web3 and brand community building go hand in hand.
Connecting offline and online life together with Web3
What makes a strong Web3 strategy? Rather than the monetary value of your brand’s NFT assets, community responsiveness is a key indicator of effectiveness. There is great value in growing the NFT community because it helps create a brand culture in the community – which allows brands to focus on this during the current bear market. After all, what brand doesn’t want a loyal and engaged audience of fans who truly love what you do?
Community building can happen online or offline, but it’s even more powerful when it’s a combination of both. Fortunately, two years of temporary lockdowns have not made us forget the possibilities of meeting people in person, quite the contrary, many of us long for. What makes Web3 interesting is the facilitation of online to offline activity. The new web includes more than just keeping followers on Instagram. It focuses on engaging and connecting with your audience. Meetings are critical to making this happen and most importantly successful.
Check out brands like Bored Ape Yacht Club (BAYC) and Dapper Labs that have built thriving NFT communities. Combining excitement with exclusivity, BAYC invites fans to virtual spaces as well as real-life events. Simply calling these events “parties” is an understatement. They are an effective way to activate and strengthen a community.
This transition from offline to offline offers a new sense of feeling, intimacy and inclusion in a group of people. Web3 is unlike anything we’ve seen since the dawn of the Internet. Strengthening the sense of community and being able to develop a sense of belonging – in an age where so many people spend so much time in front of screens, we forget how important these relationships are to us.
Market crisis or not, fashion and luxury are all in.
Despite the current bear market, they are fashionable and luxurious Putting the pedal to the metal To create innovation at digital speed. While Prada is expanding its Web3 offerings and Louis Vuitton is tapping into NFTs, Balmain has teamed up with MINTNFT to create its NFT campaign, and the list goes on.
Never afraid to innovate, the fashion and luxury industry is putting long-term Web 3 strategies into practice. come in Go beyond the claptrap to embrace the future and so will you. Don’t stop or delay your innovation efforts just because the price of an NFT fluctuates. Instead, learn from successful use cases, find inspiring and motivating partners, and start bringing your long-term Web3 strategies to life—your community of supporters is counting on you.
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