Industry insights predict the Non-fungible token industry could reach $80 billion by 2025 by net sales. While this is only a look through the bigger picture, it is possible the market could exceed the prediction.
2021 saw the market grow by 21,000% and hit a capitalization of $25 billion within one year. But, most traditional investors are still hesitant to invest in NFTs, primarily because of a lack of knowledge and experience.
NFT collections started to be a popular marketing tool for brands. Numerous leading brands have already launched their first NFT collection. For example, just a few months ago Coca Cola sold several original NFTs including, digital jacket, a cooler and a unique sound experience. A Coke fan bought the collection for $575,000.
The italian luxury Fashion house Dolce & Gabbana, launched their NFTsitems that were designed by the two co-founders of the brand D&Cshowcased their collection during the Venice world runaway in a bid to appeal to more buyers. NFTs also offer advantages for the entertainment market today ising NFT as event tickets and collectibles. Other top brands launching their unique digital collections include Visa, Marvel, LV, MAC cossmetis, Coachella Music & Arts Festival and the NBA.
Can the smaller brands use NFT collections? And for what?
NFTs have been around since 2015. However, their popularity soared in 2021. Initially, artists used NFTs as a way of controlling the sharing of their digital art. Some of these artists went on to make millions from trading their art as non-fungible tokens. Good examples include FEWOCIOUS and Beeple. It is not that difficult to infuse the technology into your business. Even though it seems that only the top shot brands have an upper hand in NFTs. But why would a brand want to invest in NFTs? Big or small. Let’s look at the facts:
- Community building & exclusive events
- NFTs for launch promos
- NFTs can be used for giveaways
- Promoting brand awareness and recognition
- Help brands connect to the younger generation
- NFTS as event tickets to prevent fraud and use as collectibles
Here are some examples:
The First #Nftbar from BCN.
30 limited edition 💎 for the true members of the Pack.
Each NFT is customized by a local artist for the highest unique quality.
Owning a Kiltro Original grants its token holders the following benefits:
- Become Kiltro Pack founding member.
- Free airdrop for the next collection.
- Get access to benefits and events to be announced for the community members through @Kiltro_NFT Twitter account.
Play in Colors restores through art disadvantaged urban spaces. Each work has exclusive characteristics, customized for each place. We trust in colours.
- Get a real Basketball, customized according to the NFT piece and signed by the artist
- Participation in a raffle to attend a future play in colours events
- NFT piece of next collection (Basketball collection)
Both of those collections were made in support of InvestingNFT
InvestingNFT collaborates with brands, athletes, and artists to potentiate their exposure through NFTs, improving their connection with the community.
As part of their services, they guide collectors through the NFT purchasing process and find trustable opportunities depending on their capital.
But what is a good blueprint for infusing Non-fungible tokens with your business. The best way is to build NFTs that are tied to a physical product or services Imagine a Reebok shoe asking customers to purchase either the physical product or the NFT version. Sometimes the digital version could be a discount given to the customer after they purchase the actual products. Another way is to showcase the virtual products to a virtual audience.
For instance, people could buy anything they want in their virtual form on the metaverse. These could be Lamborghinis, branded clothes to sneakers. Finally, brands could counter the counterfeiting of products by using their unique digital versions. This way, they can validate ownership and perhaps even trace the supply chain.
It is important for brands to learn about the potential of NFTs, as well as the risks. A brand is supposed to conduct extensive research and assess all associated risks. Some of these risks could be plummeting economic value, security issues, environmental impact, declining demand, and unpredictability.
You could improve brand recognition with an NFT, and it all depends on how customers perceive it. To make something drip, you need to understand your customers, their interests, and what drives them daily. With good research, creative strategy and quality NFT design, nothing will stop your customers from buying your NFTs and join your community.