NFTs are just a cool new trend that took over the online world for a while, and then they disappeared.
At least, that’s what everyone thought until big brands entered the digital asset world and leveraged them.
Owning a one-of-a-kind digital collectible by paying money didn’t make sense to many considering that they can save the image for free or listen to that music NFT without having to own it.
But that’s not the case now. At least, not when there is a amazing utility aka one-of-a-kind experience attached to that NFT.
And big brands like Nike, Tiffany & Co., and Gucci have figured out how to make digital ownership a blast.
And in this article we are gonna talk about a few of these big brands out of many that have embraced non-fungible tokens. Before that..
Why Brands Are Using NFTs
Firstly, NFTs offer a unique way to create digital assets tied to their brand, which can be bought, sold, or traded by customers, forging stronger connections.
Secondly, NFTs generate excitement and interest around a brand, much like the impact of social media a decade ago. They can incentivize audience engagement and build buzz.
Thirdly, NFTs provide exclusive rewards and experiences for customers, making them feel special and valued. Moreover, companies can track customer behavior, offering valuable insights to enhance the customer experience and gain a competitive edge in the evolving digital landscape.
Now, all of this might not make sense…
“Why would anyone pay for something that is digital?” – Well, most of the times, it’s the feeling of owning something exclusive (that gets the attention and status) and many other times, it’s the utility that comes with these NFTs.
If you don’t own one, you can’t have access to the experience these brands create. Let’s look at how brands are using these NFTs to create that experiences, starting from Nike.
Nike, just like their motto ‘just do it’ has done some amazing things in the web3 space.
Instead of directly launching their NFT collection, they made their web3 entry with a virtual land in the Roblox Universe (which people also refer to as a metaverse).
And that move gathered millions of visitors to their land. I mean, Roblox is already quite popular, and Nike is already a big brand, so, it worked pretty well.
In December 2021, Nike acquired RTFKT Studios, which is well known for it’s expertise when it comes to creating one of a kind sneakers and digital artifacts.
Do you know? Since December 2021, Nike has earned $185M dollars in NFT sales revenue and generated $1.3B in NFT sales volume.
And since the acquisition, we’ve seen a few collections from them including MNLTH (Nike’s first ever NFT collection) and Nike AR Genesis hoodie. MNLTH is a collection of black boxes that unlock unique experiences when collectors complete a series of quests.
RTFKT Cryptokicks iRL is the Phygital experience from Nike, where the HODLers will have the physical and digital version (NFT) of the sneakers. Yup, an exclusive item from Nike, where in you can prove the ownership (or signal status) digitally, and even in the real world.
Adidas sold 30,000 Into The Metaverse NFTs (made these NFTs in partnership with Bored Ape Yacht Club, Punks Comics, and GMoney – a pseudonymous crypto enthusiast) and made around $22M with each NFT priced at 0.2 $ETH during the sale.
Ok, but what will the buyers get from that? Physical and digital perks!!
Each of these NFTs give the owners access to special physical goods, like a hoodie and the tracksuit worn by the Bored Ape that Adidas owns, and upcoming digital experiences.
Budweiser launched an NFT collection called ‘The Heritage Collection‘ which featured 1,936 unique digital cans — a reference to 1936, the year the first Budweiser can was created. The collection was sold out in less than one hour.
A total of 1900 Core Heritage NFTs were minted and priced at $499. The other 36 NFTs were part of the Gold Heritage set and sold for $999 each.
What can they do with these NFTs?
According to this beer company, each NFT will act as an entry key to the Budverse, unlocking exclusive benefits, rewards and surprises for all 21+ (or legal drinking age) NFT holders.
This is basically nothing but using NFTs as part of rewards schemes to promote loyalty among customers, aka NFT loyalty programs.
Important: Budweiser added an option to buy their NFTs with credit card, making it easy to onboard their customers who are new to NFTs.
In January 2022, Budweiser partnered with 22 emerging artists and dropped a collection of 11,00 NFTs, with a mint price of $499 per NFT. These NFTs come with utilities like video call with their featured artist and more..
They didn’t stop with that!
Bud Light took a step into the physical world by airing a Super Bowl commercial featuring Nouns NFT. Additionally, it released 12,000 NFTs in conjunction with its new beer brand, N3XT, which were sold for $399 each. Notably, every NFT holder had the privilege of claiming a pair of Nouns-inspired glasses.
Fun Fact: Budweiser bought the beer.eth domain for 30 ETH ($95,000 at the time).
If you go to the Virtual Marketplace of Mattel, you’ll find a series of Hot Wheels NFT Collections they’ve released. The marketplace powered by Flow Blockchain doesn’t require crypto to buy NFTs from their marketplace (which I believe is an amazing purchase experience considering that not may know how to use wallets, and buy crypto).
In case you don’t know, Mattel is a global toy company who owns IP rights to brands like Barbie, Hot Wheels, Matchbox, UNO and Fisher-Price, among others.
All of these NFTs are just collectibles that doesn’t have any utility, and are made for the purpose of converting iconic Mattel IP into digital art. They also released Barbie NFTs.
Just a collectable to flex to your friends, similar to owning Pokemon or Baseball cards.
Nickelodeon NFTs, officially licensed digital profile picture collectibles, have made their debut on the Recur NFT marketplace. This collection features 10,000 unique portrayals of beloved Rugrats and Hey Arnold! characters from the iconic moments of the shows.
Similar to Crypto Punks, these are just PFPs that owners can flex in the online world.
Paramount Global and Recur collaborated to launch these NFTs, offering fans a chance to enter the metaverse with dedicated branded experiences.
To mint a Rugrats or Hey Arnold! NFT, one had to acquite a Nickelodeon TV Pack NFT, containing a random PFP NFT of one of 12 popular characters.
In a nutshell, NFTs started as a trendy but puzzling digital phenomenon. However, big brands have hopped on the NFT train, giving it new life and purpose.
Brands and businesses are using NFTs to forge stronger connections with customers, create excitement, and provide exclusive experiences. These NFTs offer a blend of digital and physical perks, from unique virtual quests to real-world merchandise.
NFTs have evolved beyond just digital ownership, offering a unique and valuable way for brands to engage with their audience in the ever-evolving digital landscape.