How are the customer acquisition and profitability of enterprises and brands adopting Web3?

Original Title: 《The State of Web3 Mass Adoption》

Author: SuperDAO

Compiled by: Baize Research Institute

As "natives" of the Web3 world, we have been able to see individuals and businesses increasingly trying Web3 mechanisms, launching NFTs, crypto assets, and digital goods.

It has become quite interesting for us to understand why they are doing this, what goals they are pursuing, and which mechanisms work best and worst. Therefore, we conducted a large-scale study involving over 500 cases of traditional individuals/businesses adopting Web3. This study is also the subject of this article.

We hope this article can help innovative leaders in brands and institutions try Web3, and that Web3 startups, investors, marketers, and brand managers can also find valuable insights.

1. Industries Adopting Web3

Fashion, Luxury, and Beauty
This group of industries has generated more revenue in Web3 than all other industries, primarily due to the digital goods launched by well-known brands in these sectors.

Brands like Gucci, Nike, Tiffany, Bulgari, Porsche, and Sephora mainly adopt Web3 mechanisms such as digital goods and accompanying access to private events, which are held both offline and in the metaverse.

On this basis, the interaction between customers and brands has reached a new level—wearable virtual clothing in games or the metaverse, digital copyrights, and the connection between physical and digital goods. Tiffany is a great example, as they have proven that with the help of blockchain, there is no difference between a customer's virtual identity and their actual identity.

Key Cases:

• Issuing NFTs: Gucci, Bulgari, Škoda
• Launching "Physical + Digital" combo products: Adidas, Dolce & Gabbana, Tiffany, Porsche, MAC
• Creating digital goods from the most popular physical products: Nars
• Launching digital goods: Nike
• Customer loyalty rewards: Bentley, Sephora
• Creating metaverse experiences: Gucci, Audi
• NFT charity auctions: Countless

Profit Ranking

2. Profit Ranking of Web3 Adoption:

Media, Film, and Television
This group of industries focuses on exclusive access to content and digital collectibles. Individuals or companies include Time Magazine, Forbes, Netflix, The Rolling Stones, singer Shawn Mendes, singer Grimes, and renowned director Quentin Tarantino.

Access to exclusive content or services and digital collectibles is applicable across almost all industries. Nevertheless, the media has adopted this Web3 use case at the fastest pace.
Key Cases:

• NFTs representing lifetime memberships: Time Magazine
• Digital collectible NFTs: Quentin Tarantino, Grimes, Shawn Mendes
• Private meetings: Comedian Bill Murray, writer Ben Mezrich
• Calls and chats: Ben Mezrich
• Unlocking behind-the-scenes content: Quentin Tarantino, Ben Mezrich, FOX Network
• Producing content as NFTs: Quentin Tarantino
• Launching "Physical + Digital" combo products: Rolling Stone Magazine
• NFT membership clubs: FOX Network, Harry Potter
• Granting intellectual property rights to NFTs: Grimes

Profit Ranking

Consumer Products
The food, beverage, and toy industries are among the earliest adopters of Web3 technology. Brands like Coca-Cola, Pepsi, Barbie, and Hennessy have entered the Web3 world, launching NFTs specifically for certain occasions.

This industry group has excellent taste in adopting Web3, combining the sale of real and digital goods, allowing customers to not only purchase real products but also experience or interact with virtual goods in the virtual world, enhancing customer experience.
Key Cases:

• Launching digital collectibles: Pepsi, Johnnie Walker, Glenfiddich, Hennessy
• Offering lifetime discounts: McDonald's, Starbucks
• Launching "Physical + Digital" combo products: Coca-Cola, McDonald's, Johnnie Walker, Glenfiddich, Barbie, Mattel, Procter & Gamble
• Exclusive products: Johnnie Walker, e-commerce platform Shopify, Starbucks
• Token holder communities: Shopify
• Creating metaverse experiences: Unilever, HTC VIVE, Starbucks
• Hosting events for NFT holders: Unilever

Profit Ranking

Sports, Music, and Art
When it comes to fan engagement, brands have long been striving to surprise fans and provide them with unforgettable experiences. Web3 seems to fit this perfectly.

For example, the American rock band Kings of Leon produced their first NFT album, which also serves as a ticket for front-row benefits at any of their concerts. Another example is former professional boxer Mike Tyson's collaboration with artist Cory van Lew to launch an NFT series, where owning the NFT allows fans to train with Mike Tyson and spend a day with him.
Key Cases:

• Producing albums as NFTs: Kings of Leon
• NFT ownership of songs, art, moments, etc.: NFTs, NBA, basketball player Stephen Curry, rapper Snoop Dogg
• Increasing fan engagement: Serie A, Super Bowl, McLaren, Red Bull Racing
• Art collectibles in NFT form: British Museum, Vatican Museums, Museum of Modern Art, New York

Profit Ranking

3. Most Popular Web3 Use Cases

Collectibles and Virtual Goods

• Nike sneakers for the Roblox virtual world, as well as Nike's own RTFKT virtual sneakers
• Gucci Town, a virtual plaza built in the Roblox virtual world, along with wearable virtual clothing
• Adidas launched virtual sneakers and hoodies integrated with Bored Ape elements
• Tiffany launched virtual jewelry integrated with CryptoPunk elements

Selling "Physical + Digital" Combo Products

• Chipotle opened a virtual restaurant
• Metamall Group created a metaverse "shopping mall" to make online shopping more immersive, enhancing the shopping experience

NFT Charity Auctions

• L'Oréal Paris donated 50% of the "resale income" of NFTs in the secondary market to charity
• Porsche collaborated with a Web3 company for a charity auction of NFTs

Event Rewards and Tickets

• Sephora's metaverse event was held in the form of a virtual party, where attendees could receive NFT prizes for free
• McLaren launched 2,012 NFTs through the MCO LAB event, available only for McLaren owners to purchase.
• Red Bull Racing auctioned passes as NFTs, with winners able to attend live esports events
• Coachella music festival auctioned two NFTs representing lifetime tickets

Social Media Engagement

• Retweeting a tweet can earn a McDonald's rib NFT, which can be redeemed for a free rib at physical stores

Loyalty Programs

• ShopNEXT partnered with Visa to launch a Web3 loyalty platform. Users holding Visa cards can not only shop conveniently but also earn token rewards.
• Singapore Airlines launched the NFT wallet Loyalty, which unlocks exclusive physical product purchasing rights

Education

• Korea's Hwasung University issued 2,830 NFT diplomas
• Accepting crypto asset payments
• Some physical stores began accepting crypto asset payments in addition to fiat currency
• McDonald's in Switzerland
• Atlas Cafe in San Francisco
• Konzum supermarket chain in Croatia
• Varus supermarket chain in Ukraine

4. Brands Successfully Adopting Web3

We have seen different outcomes from Web3 adoption cases—some brands are driven by revenue, while others aim to enhance audience engagement.

Revenue

Nike—$185 million in revenue + 67,200 transactions
Gucci—$11.6 million in revenue + $31 million in secondary market sales
Prada—$191 million in revenue
Tiffany—$12.6 million in revenue

Engagement (Participation, Downloads, etc.)

Louis Vuitton—2 million downloads
Sephora's metaverse event—over 16,000 participants

"Capturing" Potential Customers

Fashion brand Balmain—over 10,000 members joined

Social Media Engagement

Fashion brand Lacoste—12.12 million social media mentions in September

Creativity (Community Participation in Design)

Actor Tom Felton—submitted over 500 fan art pieces for charity

Failure Cases
Despite the countless success stories of individuals or businesses adopting Web3, we must not forget the lessons from corporate failures.

• CNN—The company shut down its NFT marketplace Valut just a year after launch
• Lil Nas X—The NFT project in collaboration with TikTok and Lil Nas X has been completely canceled

Is the Sustainability of Web3 Use Cases in Question?
Some cases seem to be one-off events, primarily due to the rapid growth in customer demand for NFTs over the past few years.

Some companies target Web3 customers who are willing to spend big bucks on digital goods related to their idols. Another model involves an IP that has decades of accumulated audience waiting for that IP to launch NFTs.

For example, the launch of the NFT series for Harry Potter excited fans, as they had long wanted to own digital goods of their favorite characters.

However, if the project decides to create a similar NFT series a year later, will fans buy again? Where will the demand come from if there are no new fans joining Harry Potter?

5. Looking Ahead

What expectations do we have for future Web3 demand in traditional markets?

Here are some trends that will impact future demand.

Faster Experimentation Cycles

Web3 advocates and leaders need to continue making it easier for Web2 companies to adopt blockchain by providing relevant tools and strategic consulting.

Advanced NFT Mechanisms

NFT collections will feature more complex mechanisms, such as blind boxes, QR codes, and more intricate metadata behind each NFT.

Collaborative Culture

More collaborations between brands and influential celebrities will lead to more Web3 activities.

Adopting Web3 presents both opportunities and risks, so how will you choose in the wave of Web3?