How should brands consider practicality when issuing NFTs?

This article comes from MediumThis article comes from

, the original author: Nic Carter, compiled by Odaily translator Katie Koo.Consumer goods, especially luxury goods, look very different with the advent of NFTs. New digital experiences are on the way, and an even better version is only a matter of time.

The "digital twin" model will greatly exceed the conventional luxury consumer experience and is expected to accelerate the mainstreaming of NFTs. More and more NFTs are being bundled with affiliated merchandise. Not only do they track ownership of some scarce digital content, but they also allow you to gain access to services offered by publishers, including access to events, memberships in clubs, participation in future sales or airdrops, and more.

Yet another view is that the value of these purely digital NFTs is a purely speculative premium. The art world, in particular, has strongly resisted NFTs. Many brands are dealing with the fallout from NFT airdrops, which have soured their relationship with fans.

In the following, I describe six advantages of a digital twin model.

secondary title

Digitization of merchandise display

The digitization of merchandise displays is the main reason I think digital twins will catch on. The main place for young people to express themselves is the Internet. After buying a new luxury item, I can't wait to display it on the Internet.

If the Metaverse really catches on, you can walk down the street in tried-and-true Louis Vuitton. The LV brand may want to push the NFT verification method, because they don't want a large number of knockoffs and unauthorized derivatives with their Logo hanging around in the street.

secondary title

Anti-counterfeiting features of digital twins

In a sense, the anti-counterfeiting properties of NFT physical twins mirror the shift from physical cash to cryptocurrencies. Like cash, luxury goods must first differentiate themselves based on physical attributes that are difficult to replicate, making counterfeiting more difficult. But now with embeddable tags attached to persistent digital objects, counterfeiting is much harder.

secondary title

NFT improves the relationship between brands and consumers

A digital twin simplifies all of this, making it simple to identify fans and even determine their record of loyalty to a brand. NFT also opens up a communication channel between sellers and buyers for promotion or payment. Finally, it's easy to add provenance information so that collectors (and future buyers of the item) can learn more about the provenance of the item itself.

secondary title

NFT Offers a Better Auction Model

Buying traditional luxury goods can seem like a game of loyalty (like watches or sports cars), waiting in long lines (like buying sneakers), or dealing with scalpers and volatile secondary markets. With NFT auctions, prices can float in real time, rules can be formalized, and rules around whitelists can be fair and transparent. There is an added advantage to using digital holder assets for payments. The issuer does not need to deal with chargebacks, and sales can be global as long as the issuer is willing to ship globally, independent of the payment system.

secondary title

NFTs for redeemable goods bring new efficiencies to manufacturers

As issuers gain more data on redemption profiles (primarily user-specific data), they will be better able to plan around product performance and redemption rates. Eventually, manufacturers will be able to predict by product how many collectors are likely to redeem, and how many typically redeem each NFT redemption window. There is no doubt that their NFT sales will exceed the number of goods they produce. Inventory management is good for brands.

secondary title

Wearable NFTs Open Up a Whole New Design Field

secondary title

Summarize

SummarizeLast year, most tech-savvy luxury brands probably wanted to try NFTs. Now that the wave has cooled, these brands will start to realize thatThe innovation is not to sell high-priced pictures to fans, but to combine merchandise with long-lasting digital asset rights.