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    From Digital Gucci To Blockchain Supply Chains: Retail’s Web3 Revolution

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    From the early days of online shopping to the rise of influencer marketing, there’s no doubt that the internet has revolutionized the way we shop and make purchasing decisions. As we enter the next phase of the internet, powered by the Metaverse, blockchain, and NFTs, there are new opportunities for fashion brands and retailers to connect with their audiences and sell their products.

    Here are three opportunities that retail brands simply cannot afford to ignore.

    Opportunity 1: Create a digital-only product

    The trend that started with the purchase of NFT collectibles and in-game accessories is now making its way into the retail sector. For fashion brands in particular, Metaverse and Web3 offer an entirely new way to meet the desires of their customers, customers who will spend more time in virtual worlds. Given that many of us use clothing as a way to express our individuality and individuality in the physical world, why wouldn’t we want to do the same for our digital selves? .

    Several brands are already developing digital-only products. Balenciaga has created a clothing line for the wildly popular Fortnite game. Gucci has created a luxury destination called Gucci Garden on the Roblox Metaverse platform. By the way, there he had one virtual bag sold for more than $4,000. Burberry created a series of NFT pieces for the Blancos Block Party Universe, including armbands, jetpacks, and pool shoes, and the collection generated approximately $400,000 in revenue. And Dolce & Gabbana has sold a nine-piece collection on digital luxury marketplace UNXD for a staggering $5.7 million.

    Clearly, high-end brands are leading this trend. But like most things in the fashion world, trends that start with designer brands generally filter down to high street brands. Therefore, we can certainly expect to see more and more brands across the price spectrum releasing digital-only products, whether the products are for sale or simply to generate marketing buzz. As an example of the latter, Coca-Cola recently launched a virtual drink (called Coca-Cola Zero Sugar Bites) within the Fortnite game.

    When you think about it, there are huge benefits to creating digital products. Designers are free to create without the limitations of physical products. Production costs are minimal, profit margins are huge, and unlike physical products, you don’t have to worry about carrying excess inventory. Meanwhile, as a customer, you can make your digital avatar wear whatever you want without worrying about practicality, comfort, or appearance.

    We’ve talked a lot about fashion, but don’t worry, digital product trends apply to all kinds of brands. In the Metaverse, you will be able to buy digital versions of virtually everything, including clothes, virtual furniture (for your virtual home), virtual cars that move around the Metaverse, virtual pets, and even virtual jewelry.

    Opportunity 2: Set up shop in the Metaverse

    Brands have already begun to move beyond traditional static retail websites to create immersive virtual shopping and branded destinations within the metaverse. Nike has established its own virtual world called Nikeland on the Roblox platform and is a true leader in building a virtual presence in the Metaverse. Inspired by Nike’s actual headquarters in Oregon, Nikeland features Nike buildings and an arena where Nike enthusiasts can participate in games like tag and dodgeball. But there’s also a virtual showroom for Nike products, stocked with the latest digital products and digital versions of Nike classics like the Air Force 1 sneaker. In other words, Nikeland is part game, part brand experience, and part showroom. This is a cool glimpse of what virtual stores will look like in the future. More than just a digital replica of a physical store, it will incorporate immersive and fun activities. By comparison, the current online retail experience looks pretty boring.

    Other brands jumping on the virtual experience trend include Forever 21, Selfridges and beauty brand Charlotte Tilbury. Walmart is also creating metaverse experiences, like his Roblox’s Walmartland, which features an obstacle course of oversized Walmart products and a virtual fitting room with a high-end clothing line. Walmartland also hosted a virtual his concert featuring Madison Beer and other artists.

    Opportunity 3: Adopting blockchain technology

    Blockchain has great potential to disrupt the retail industry, especially when it comes to supply chain. Blockchain brings much-needed transparency to the movement and exchange of goods, providing a secure and complete record of where products and materials come from.

    French retailer Carrefour is already using blockchain to track meat, dairy and fruit from farm to store. Customers simply scan her QR code in-store and receive information about where (and when) the product was harvested and whether pesticides were used during production. As more and more consumers think carefully about the products they purchase and the impact of their purchasing decisions, blockchain’s ability to provide a complete and traceable record of a product’s lifecycle will foster consumer trust. It’s clear that it helps.

    Speaking of confidence, for luxury brands, blockchain-based records can also give customers peace of mind that the products they are purchasing are authentic and not fake. Combining this with the automatic execution of smart contracts, there is even an opportunity for brands to get a piece of the pie when their products are resold in the future. (I’m sure it appeals to luxury brands.)

    And for small businesses, the decentralized nature of blockchain allows brands to connect directly with customers without intermediaries (for example, trying to stock a product at Target). After all, blockchain is great at facilitating secure financial transactions between two parties without the need for a third party to manage the transactions. That alone could be a game-changer for many retail brands.

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