5 Ways NFTs Benefit Retail Brands

Retail brands thrive from having a devoted fanbase. Whether it’s luxury apparel such as Louis Vuitton or Gucci, or athletic wear in the likes of Lululemon, supportive fans are at the core of revenue generation and brand recognition.

Now is the time to enter Web3.

As technology evolves, so do the ways customers interact with their favorite retail brands. NFTs (non-fungible tokens) bring an entirely new dimension to relationships with customers, allowing brands to interact directly with their most valued audience. Web3 is offering new, innovative ways to deliver value online, and joining the space early can be rewarding.

Here are 5 ways retail brands are benefitting from launching NFTs:

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1. Strengthening Customer Loyalty

Those who purchase a brand’s NFTs tend to be its most devoted followers. When Louis Vuitton launched its NFTs, it wasn’t aimed at casual wearers of the French fashion house. It was destined to those who had a true commitment to the brand, and the project was launched primarily through its existing email list. The NFT sold out quickly, and the brand now has a deeper understanding of it’s devoted customers. NFTs allow brands to shortlist their most loyal customers, all while generating extra revenue and delivering a new set of products and exclusive rights.

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2. Create Exclusive Experiences

Part of building a strong fanbase is offering customers exclusive experiences that make a brand memorable. NFTs can allow customers to interact with brands on a personal level. Gap has launched a contest this fall where anyone can redesign their logo, allowing other customers to vote on their favourites. The top winning designs will be turned into NFTs and real hoodies. Gap is offering cash prizes, as well as the NFT and hoodie for purchase. This is a unique engagement experience for customers.

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3. Boost Brand Awareness

NFT campaigns attract considerable media attention. Urban Outfitters collaborated with world renowned graffiti artist André Saraiva, which created a community of UO customers engaged with this campaign. Whether you were an André Saraiva fan, or a UO customer, you were anticipating the campaign as it spanned 4 months in Spring/Summer 2022. The benefits to this NFT campaign were huge to the customer; money to spend at UO, custom art pieces, air drops, and other physical product, the buzz around this campaign was immense.

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4. Verify Ownership of Rare Items

NFTs are a great tool to demonstrate digital proof of ownership. If you own an NFT, nobody can replicate it, and it will be in your possession until you decide to sell it or send it elsewhere. Blockchain technology helps us verify this, without corruption. So, if your brand sells a limited-edition item, or a rare collectible, one way to verify its authenticity is to issue an NFT and match it to the item. This is particularly useful when it comes to luxury goods, since there are lots of counterfeit items circulating and making their way into innocent buyers’ hands. By verifying authenticity via NFTs, retail brands can assure customers that their secondhand item is genuine.

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5. Giving Back to the Community

Something many brands are doing is raising money for charitable foundations through the sale of NFTs. This is a great way to test your customer’s interest in this new technology, while raising money for a cause your brand cares about. A considerable amount of money can be raised through the sale of NFTs. Although Adidas’ “Into the Metaverse” campaign was not for charity, it sold over $22 million. The Gap’s campaign referenced above has all proceeds in their first phase being donated to a nonprofit organization.

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To conclude, NFTs are a great way for retail brands to engage with their consumers on a new level. They offer the chance to enter the new wave of internet commerce, by creating interactive experiences and giving their brand further visibility and exposure. NFTs are also a great tool to expand a brand’s revenue sources through the launch of innovative products and experiences.

If you’d like to find out more about how NFTs can benefit your brand, contact us at hello@ethosnft.com and we’ll be happy to help!