How beauty and fashion brands use Web3 to their advantage
According to CBInsights, Web3 provides huge branding and monetization opportunities to retailers across the beauty and fashion spaces. To date, leading brands have already earned more than $250M in revenue from NFTs. Let’s see how some well-known brands are embracing Web3 and how Cappasity NFTs can help you approach the next iteration of the internet.
In December 2021, L’Oréal commissioned five female artists to create NFT art inspired by the brand’s new lipstick, Reds of Worth, and its six red hues. The NFTs were auctioned on the OpenSea marketplace, with artists retaining 100% of primary sales. Fifty percent of up to one year of the secondary market sales were donated to support Women of Worth, L‘Oréal Paris’ initiative that honors women making extraordinary differences in their communities. This is a great example of how NFTs help retailers not only raise money but also communicate their brand values to consumers.
Nike has always been at the forefront of digital transformation and in the past few years they’ve moved to capitalize on the excitement around new concepts such as NFTs and Web3. The brand demonstrated how keen it was on the idea of NFTs back in 2021 when it acquired RTFKT Studios, a company that makes digital sneakers. RTFKT first shook the world when it sold $3.1 million worth of NFT sneakers in just seven minutes in February 2021. Since its acquisition by Nike, the studio has helped propel the American sportswear giant into a front-runner in Web3.
LVMH, the world’s largest luxury group by revenue, is also exploring Web3 technology to enter virtual worlds. Last year, LVMH’s luggage brand Rimowa partnered with Nike’s RTFKT to feature NFTs backed by limited edition physical suitcases. The collaboration was interactive, requiring consumers to solve a variety of challenges together to uncover the “hacked” Rimowa x RTFKT Space Station — which required reactivation in order to mint one of the rare NFTs. Those who managed to attain the limited supply of NFTs were able to forge the token for a redeemable physical version of the suitcase.
How to dive into Web3 with Cappasity NFTs
As you see, Web3 and NFTs bring limitless opportunities to beauty and fashion brands. They have the power to help retailers communicate their brand values, raise money for charity, attract younger tech-savvy audiences, and build a strong community around a brand. As the company bringing innovation to customer experiences, Cappasity is now working on a solution that will allow brands to create NFT-based loyalty programs and add extra value to their products.
Unlike other digital assets, a Cappasity NFT can contain not only photos and videos, but also text (e.g. a brand’s history); immersive content (3D/3D View visualization, AR holograms, virtual try-on); and VIP perks and benefits, like personalized discounts, invitations to events, priority access to new product launches, and more. Brands can add new content to NFTs even after their customer gets the token, which allows them to use Cappasity NFTs as a new customer communication channel.
To create an NFT-based customer loyalty program, contact our team at email@example.com.
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