Web3 strategies for brands
Three approaches: virtual products, hybrid products, and distributed ownership
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Depending on whom you ask, Web3, a new iteration of the internet based on blockchain technology, is a form of monetization, the future of organizing, or a get-rich-quick scheme. But amid this debate, many companies are already testing a range of ways to create value — from increasing brand awareness to experimenting with new models of product ownership — using Web3 tools. These initiatives mark both a technological advancement and a new approach to corporate strategy.
Early adopters of Web3 tools are using them to get a better understanding of consumer behavior so that they can more accurately — and competitively — chart customer journeys and participate in customer communities. These efforts help build companies’ brands and power transparency around supply, production, and distribution, boosting corporate governance and sustainability credentials.
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I met Daniella Kallmeyer in 2017 and was instantly struck by her passion, beauty and intelligence. Daniella’s label, Kallmeyer, focuses on elevated, versatile items produced responsibly and equitably. Daniella carefully chooses which suppliers, manufacturers and distributors she works with - and her values are visible in everything from her supply chain to her Lower East Side store that doubles as a community space, a styling hub and a core brand expression. We talked about all of this - and about her design philosophy back in 2020 - and you can watch our conversation here. Kallmeyer Instagram can be found here.
I examine here how three different approaches to Web3 — virtual products, hybrid products, and decentralized ownership — can deliver immediate business value. By experimenting with each, brands can take advantage of this new era of the internet to amplify and diversify their digital footprint.
Many brands are creating their own Web3 products, often in partnership with established producers of and platforms for virtual assets. Think non-fungible tokens (NFTs), Roblox avatars, Fortnite skins, or property in Decentraland. Companies retain full control over the assets they create, including how they look and work in virtual environments and digital wallets. These experiments both attract the attention of younger audiences and yield useful insights on their behavior.
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