This post includes updates to the web3 for consumer brands/Open3 Collective knowledgebase and sent via email to members.
The one takeaway for this week’s update
Learnings from Porsche’s recent entry in web3 – the good, the bad, market expectations and the takeaway
Cover image created using generative AI.
Porsche recently came out with a vanilla NFT collectible.
The Good:
- They sold 2363 NFTs;
- It was their first foray into web3 and was easy to do without many complexities behind the NFT or the process;
- They got a lot of learnings that they can, and are, building on.
The Bad:
- It was a vanilla collectible NFT that was circa 2021 and not at all interesting for 2023.
Market Expectations:
- There were some voices that said the mint price was too high, supply to large, and not enough benefits for owning the NFT;
- The original collection number was 7500, and Porsche only sold 2363 when it stopped the minting process, so it was a failure.
Takeaway:
It was a success because they sold products (NFTs in this case), got feedback, and can build on that. Doing it the way they leaves them open to many directions in which to go from here.
Right now, web3 is not about meeting market expectations as much as it is just getting out there, trying things, getting data, learning, adjusting, and repeating the process, over and over.
As long as a brand is not trying to consciously rug its user base and what the company tries does not irreparably hurt their brand, there are no failures.
If we’re in the future and look back, is the story here about how Porsche failed in its first NFT launch, or how they learned from it to create what its customer base wants in web3.
Given its the Porsche brand and the enduring legacy they want to protect, I think it will be the later, which is what we will remember.
To see all weekly takeaways published to one document, click here.
Key Tools Changes/Additions
- Added new a subsection titled “Breathing New Life Into Marketing, Sales, Branding and Distribution” to the tool What is Web3 and Why It Is Important For Consumer Brands.
The above are key updates to consider. Go to the web3 market intelligence database to see all.
Notable Market Intelligence Updates
- Nike has opened up .SWOOSH Studio to allow people to submit creative for chance to get selected to co-create virtual creations and earn royalties. Its a small step, pretty tightly controlled but the era of co-creation using a brand’s IP with royalty potential has started.
- Hermès v Metabirkins trial. Hemes filed a claim that its intellectual property was infringed by the artist who created a series of NFT artwork using potentially Hermes likeness and copyrights. The artist claims its art as creative commentary protected by the first amendment. If Hermès win, this might be perceived as a win for those building digital assets and branded NFTs, as it would place significant value on digital goods. In other words, a metaverse-ready depiction of a handbag might be treated as valuable as a physical one (this is already happening). On the other hand, a Metabirkins win would be a warning sign to brands to continue to file to protect their marks in the digital realm — even if they don’t have plans to enter the space. If you are a brand that is slow and has no plans to be in the digital space, how do you control someone taking your brand and putting it in a digital space?
- CHA CHA MATCHA UNVEILS NFT-BASED LOYALTY PROGRAM. The brand is dramatically reducing friction by just requiring an email address and credit card. The brand handles all the backend machinations that make crypto very poor UX at present. Interesting that the article also notes about the interoperability of NFTs to coordinate benefits and collaboration with other brands. First time I am actually seeing that written by someone else besides me.
- 2022 sets digital fashion records on Roblox: 569.8 million people updated their avatars in 2022 with new outfits and purchases, leading to a collective 176.8 billion avatar updates (up from 165 billion in 2021). This is astounding the numbers here for digital fashion and on just one metaverse platform and just one year when the metaverse is still in its infancy.
- Burberry, Louis Vuitton and Hugo Boss are using 3D design on physical products. Not just is this faster, cheaper, but imagine taking designs to the metaverse market as digital products to test, taking pre-orders, then producing via 3D printing or some variation of it to meet the orders. This is an example of exponential technologies converging to create exponential growth and potential across an entire company’s operations.
The above are key updates to consider. Go to the web3 market intelligence database to see all.
Forward Guidance
- None this week
See all forward guidance published to one document here
