The internet is changing and evolving entering a new era of infinite possibilities with the introduction of concepts like “Ownership” & “Trustless Verification” through the utilisation of blockchain technology. In the previous article where we discuss the power of Web3 in brand activation & digital transformation with NFTs, we share some examples of enterprises that are adapting Web3 solutions like Adidas, Nike, Twitter, and more. This technology is now making its way toward small brands SMEs and startups that are looking to pivot and utilise innovative technologies to embed new ways of sharing value within the ecosystem.

Journey from Web1 to Web2 to Web3

The leap from Web1 to Web2 came with many challenges, but the outcome was a totally new way for people to interact with the internet and share content. Web1 offered a read-only model allowing people to receive information through a one-way stream. This model worked great initially, but it was missing a key element of interactions and original content generated by individuals on the internet. A two-way stream had to be created allowing people to read & write introducing new concepts like social media platforms where everyone connects with one another to share and receive information. Now we are on the precipice of a new era of Web3, introducing a way for people to read, write, & own. This is achieved through trustless verifications enabled by blockchain technology.

Web2 companies are entering the Web3 Space

Entreprises, SMEs, and startups are exploring Web3 by creating concepts that would act as a proof-of-concept (POC) to them and their community allowing a seamless transition from Web2 to Web3 without impacting the existing business models and business as usual practices. This is a key point to understand for all the companies that are looking to enter the Web3 space, as most of them are afraid of negatively impacting their business by implementing a new solution that naturally has inherited risks. The common factor between successful Web2 to Web3 stories is how they conceptualize, plan, and execute the project which ultimately acts as an MVP allowing them to iterate, whilst keeping the expectations low.

In this article, we will be highlighting some of the Web2 to Web3 successful stories and understanding more about their offerings and what makes them unique.

Gucci – The Next 100 Years of Gucci

Gucci released an NFT collection that sold for $25,000. They announced a partnership with SuperRare to launch Vault Art Space. Gucci plans on using the Vault Art Space to hold exhibitions by NFT artists called “The Next 100 Years of Gucci,” presenting a selection of NFT artwork, “each a collectible fragment of Gucci’s kaleidoscopic heritage.”

What did they do right?

• Gucci focused on creating an NFT that doesn’t impact their day-to-day business but allows them to enter the Web3 space with minimal risk

• The story behind the NFTs is attractive and holds intrinsic value to loyal customers

• Partnering with SuperRare is an excellent way for Gucci to enter the NFT space and tap into NFT communities

FC Barcelona – In a Way, Immortal

FC Barcelona created ‘In a Way, Immortal’ unique 1/1 NFT, which is the first NFT in the club’s history. It celebrates Johan Cruyff and sold for $693,000 at an auction. The animated digital art NFT aesthetically recreates a goal scored by Cruyff, who later became the club’s coach in 1973. The future owner of this NFT will be labeled Barça Digital Ambassador and enjoy unique Club-based benefits and experiences such as access to training sessions among other utilities.

What did they do right?

• FC Barcelona focused on an iconic moment that is engraved in the minds of the loyal fans and created a piece of history into an NFT

• By focusing on a unique 1/1 NFT they created scarcity and tapped into the mindset of die-hard fans that would love to be part of the journey

• Adding utility to the NFT was a key factor enabling the holder to own a ticket to a lifetime membership as Barça Digital Ambassador granting them access to real-life use cases such as access to training sessions and meeting the players

Charles & Keith – Cryptocurrency Payment 

Charles & Keith is one of the first retailers to add a cryptocurrency payment mode on their e-commerce website. They accept both Bitcoin (BTC) and Ethereum (ETH). They have also dived into the metaverse as they participated in Decentraland’s Metaverse Fashion Week with an exhibition meant for brand storytelling.

What did they do right?

• By adding a new way for people to pay through their e-commerce platform doesn’t affect their day-to-day business and allows them to generate large PR and marketing campaigns

• Adding a use case for crypto holders to spend their Bitcoin & Ethereum and purchase goods open up opportunities for growth and showcasing real-life use cases of crypto and blockchain

• Entering the Metaverse in partnership with Decentraland is an effective way to tap into an existing community while creating a positive buzz around the brand showcasing progressive and innovative thinking

NIVEA – The Value of Touch

Skincare brand NIVEA’s ‘The Value of Touch’ campaign features Clarissa Baldassarri, an artist who experienced a temporary loss of sight at the very start of her career. The project includes 15,000 NFTs for free to mint with a landing page that helps onboard users with a branded Web3 wallet. NIVEA aims to spread awareness and educate people about the Web3 space using the NFT drops. By keeping the NFTs free of cost, they allow any users to experience Web3 and learn about the ecosystem without the risk of losing money, this also acts as a proof-of-concept (POC) for NIVEA to understand their customer base and takes them through this journey.

What did they do right?

• Create an interesting story around the NFT drop that everyone can connect with

• Make the NFT drop free to mint allowing anyone to be part of this journey spreading education and awareness about Web3 and onboarding their users to Web3 for future projects

• Keep the NFT collection limited making it scarce and potentially opening up a secondary market trade as they add utilities to the NFTs

What makes a successful Web3 brand transformation

To gauge the success of a Web3 brand transformation we have to look at different aspects of the business and understand the impact of Web3 on the core business. As we have seen in the previous example of successful Web2 to Web3 stories we find a common factor between all of the companies, which is that all of the use cases implemented have a low risk for the brand and do not meddle with the core business, in contrary the activations supplement the brand, whilst working in parallel to enhance the user experience. This tells us that going from Web2 to Web3 doesn’t necessarily mean a drastic change in the business model, taking baby steps has been the preferred method of larger brands.

Furthermore, we are seeing a strong culture built around Web3 with communities growing and catering to different industries. For brands to be successful it’s mandatory to talk the same language as the communities and be part of the whole ecosystem, this required specific Web3 and NFT marketing which works completely differently than the traditional marketing that is usually executed by these brands.

Conclusion

Majority of Fortune 500 executives see a massive future in the Web3 space and are looking to enter the space one way or another. This directly reflects the fact that big conglomerates and enterprises see potential in Web3, but they are cautious about the steps they are taking to experience Web3 and take their users on a new journey. 

Most of the successful Web2 to Web3 brand stories all have a single thing in common, they never interfere with their day-to-day business model that would disrupt their business and income streams. Companies are creating sub-projects that go in parallel with their business adding value to the brand and most importantly the customers.