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
Is a royalty or commission standard emerging for retailers that in web3?
The feature image was created using MidJourney AI with the prompt: create a North Face ski jacket in high detail, rich colors in art deco.
‘Phygital’ Galeries Lafayette Champs-Élysées exhibition offers digital and made-to-order fashion NFTs.
People could buy some of the digital pieces as physical, which would come with a QR code to show provenance and history, and are made to order. This is another example of identifying products uniquely, but this using a QR code.
But what is interesting is that in this web3 implementation. we see a royalty split to the marketplace or retailer. Common is for 10% to go to the creator. In this case, 10% of the profits are also going to the marketplace, or retailer, with 80% to the holder.
Maybe 10% is emerging as the royalty to retailers in web3.
To see all weekly takeaways published to one document, click here.
Key Tools Changes/Additions
- Blockchains transactions do not natively identify people and who they are and are thus anonymous, but they still reveal everything else about the account, what it owns and its transactions. Privacy is emerging to give users options to hide this information and a sub-section titled “Privacy Protocols” was added to tool Smart Contracts, Minting solutions and on-chain data storage
The above are key updates to consider. Go to the web3 market intelligence database to see all.
Notable Market Intelligence Updates
- Alo Yoga rolls out digital twins to accompany its premium ski collection. This is the second implementation of web3 seen for a brand that qualifies as an outdoor product and active lifestyle brand (The first was Fusalp). This implementation does not appear to have a unique identifier on each apparel item, like an NFT chip. Since this was a luxury collection sold direct-to-consumer, the company knows the buyers and is sending them emails to mint generic NFTs tied to the product collection. The NFTs grant utility through exclusive access, but that is all. The implementation is, however, making it seamless to mint an NFT by providing a wallet to the customer automatically and setting up integrations where it is easy to verify ownership via tokengating on the company’s website.
- Prada offers NFTs retroactively to all Timecapsule customers. Timecapsules are released monthly as new physical product drops, starting June 2022. Customers who bought Timecapsule pieces before they were attached to NFTs now have the chance to purchase an NFT this time around, to join the Prada Crypted community. The physical products have a unique serial number to identify them, so this makes those products web3 enabled because they can now be attached to an NFT. This is the perfect example for how to web3-enable existing inventory.
- Here is an example linking web3 to Google and Apple wallets to store tickets for an event. Lacoste partnered with Ethpass, which provides NFT ownership verification infrastructure, on a community events page. Once verified, Lacoste Undw3 (Underwater) NFT holders get a branded pass in their Apple or Google wallets that acts like a ticket.
- California DMV to digitize car title management system via Tezos. The surprise is that a government agency is moving this fast into blockchain, and their use of the Tezos blockchain. Tezos is a nice chain known for artists, but surprisingly the DMV would pick them for this application. You would think Polygon would have been a better and more likely choice.
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
