Let’s talk about how companies use NFT for teaching brand stories.

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In recent years, NFT has become a popular topic in the Web3 field. Originally, it was confined to the technology and cryptocurrency communities. However, both businesses and artists have started issuing their own NFTs, bringing the topic to the general public. Although the level of hype surrounding NFTs in 2023 is not as high as it was last year, it is still worth examining how this concept has been used by businesses for marketing purposes.

NFT stands for “Non-Fungible Token”. Unlike “Fungible Tokens” such as Bitcoin, NFTs possess uniqueness and can take various forms, including images, videos, and more. NFTs utilize blockchain technology, where all transaction records are simultaneously written on the blockchain, making them difficult to tamper with and replicate. Thereby, the characteristic of the process ensures the uniqueness and value of NFTs. Nowadays, NFTs are not only regarded as art collectibles but also serve as a gateway for many companies to enter the metaverse, leading to the emergence of various new marketing techniques.

Case 1: Starbucks Leveraging Brand “Scarcity”

Starbucks recently launched the Web3 platform called “Starbucks Odyssey”, which has generated significant buzz. Since last December, they have released four “Journeys”, where users can earn points by completing tasks and exchange them for Stamps on the platform. This March, Starbucks introduced an NFT collection that was quickly sold out. In order to receive a higher number of loyalty points upon purchase, each Stamp was a limited edition. Starbucks Siren and various artworks from the past fifty years of Starbucks' history. Besides receiving a high amount of points upon purchase, each stamp in the Starbucks Odyssey NFT collection features never-before-seen. Stamps were designed by Starbucks Siren, and others originated various artworks from the past fifty years of Starbucks. Starbucks Odyssey, where integrated with its existing rewards program, aims to engage its members and bring consumer loyalty to the virtual world.

Case 2: Nike Invite consumers to participate in design

Nike, a worldwide sportswear brand, acquired shoe startup RTFKT at a high price, then launched the Web3 platform “.SWOOSH” last November.

Nike desires to expand the definition of sports. They want to utilize Web3 to democratize access by allowing everyone to collect, create, and own assets in the digital world. In other words, Nike’s foray into Web3 enables community members to “create” and “trade” their own virtual shoes, disrupting traditional production models. People are no longer passive consumers who simply select shoes; they now participate in the design process. Those well-designed virtual assets are able to stand out in the virtual market and can eventually be translated into real shoes. The new business model is yet to be determined, but if successful, it could bring significant changes to the industry ecosystem.

Case 3: Chain Food Industry Driving Offline Consumption through Online Engagement

Sushi Express, a Japanese sushi chain restaurant, started offering NFT virtual figurines last year. Based on seven characters, these NFTs were uniquely generated through random combinations of elements and sold in blind boxes. They were quickly sold out within three days. Additionally, customers could redeem free sushi by presenting their NFTs at the physical stores.

Another example of a “redeem in-store” promotion strategy is ShiYun Fried Chicken（師園鹹酥雞）, a famous Taiwanese fried chicken store. They were the “world’s first NFT salted crispy chicken” a couple of years ago, and caught a lot of attention.

Apart from its appealing appearance, purchasing and transferring the NFT allowed buyers to exchange it for a serving of fried chicken at the store.

TKK, also a Taiwanese fast-food chain, launched its own fan program, offering the first three individuals who collected all the designated characters a lifetime black card with an 80% discount on all purchases.

To summarize, these examples demonstrate three different marketing approaches, each utilizing the concept of NFTs to engage consumers and drive offline consumption.

• Creating a sense of scarcity to enhance consumer loyalty

Businesses Web3 marketing strategy is by attracting highly loyal and innovative customers to first enter the virtual world. By using the unique characteristics of NFT, it’s easy to meet consumers’ preferences for product uniqueness. Furthermore, the process adds a sense of surprise since that customers never know what they got until they open it.

• Self-expression and consumer participation in the design process

By the decentralized nature of blockchain, brands can delegate a portion of the design process to consumers. Not only allows consumers to have more space for creating their own products and showcasing their style but also enables excellent designs to stand out through market mechanisms.

• Integration of online and offline to enhance interaction with customers.

Chain food businesses generate online buzz by selling NFTs and leverage online NFT purchases to drive offline consumption, thereby increasing foot traffic to their physical stores.

NFTs seemed a distant issue for the general public, and people may not necessarily understand the computational aspects behind blockchain. However, through the marketing strategies employed in our daily lives, NFTs can quickly draw public attention to Web3

The trend is that future consumers desire more autonomy and rarity in the products they purchase (Avoidance of Similarity). Snyder, C.R., and Fromkin, H.L., two renowned American psychologists, published a paper suggesting that individuals have different levels of motivation for uniqueness, seeking to satisfy their need for distinctiveness. Consumers may use their purchasing behavior as a way to showcase their uniqueness. NFT is a new way of brand marketing.

作者：唐友友 Audrey Tang / 編輯：Jojo Kwong, Morris Yang