Maddie Raedts is Founder and CCO at have || Global Head of Social for Fashion and Luxury at MediaMonks || Forbes 30 under 30.
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At the end of last year, the market for non-fungible tokens reached a value of $41 billion. Seemingly endless, unique digital objects that are linked to blockchain technology exploded. Of course, the fashion and luxury industry – known for innovation to speak to the moment and changes in culture – has decided to To do this, breaking out of business as usual and into new playing fields has been key. At the moment, Web3 is one of the most prominent new kids on the block. It’s something we’ve helped clients with at Media.Monks.
Web3 represents the next era of the Internet. It’s about reconnecting the inner workings of the web and changing the way information is stored, shared and owned using blockchain. “In theory, a blockchain-based web could destroy the monopolies of who controls information, who makes money, and even how networks and corporations operate,” according to a writer for Harvard Business Review.
In practice, many leading brands are relying on Web3 to build their community, which is central to the customer journey in the virtual age. We’re seeing more and more fashion brands adding digital layers to elevate their existing collector communities, offering NFTs that consumers can use to either wear their avatar in the virtual world or access exclusive outlets in the real world. NFTs target a group of people, whether large or small, who find value in a specific project or product – essentially creating a new kind of community space for fans, online and offline.
After a long hiatus from in-person events, I think it’s safe to say that people are hungry for connections in the real world. Many of those working to bring Web3 to life know it, so they’re focusing on creating experiences that can exist in both the virtual and physical worlds—and the fashion and luxury industries are getting very involved.
Despite the setbacks, brands prepare for the future of digital
Despite the crypto gold rush, many people’s excitement, energy and investment in this space is fading due to the recent crypto crash. We are seeing many brands curbing gimmick-like NFTs, rethinking their metaverse strategies and stopping their employment on Web3.
A safe bet? Of course.
It is important to keep in mind that the world of decentralized finance has a history of volatility. For example, bitcoin has fallen sharply before, but then crawled back. However, I think the crypto crash is different this time because many other industries, such as fashion and luxury, are now also involved in the Web3 space.
Industry experts argue that now is the right time to simply ride out the storm and educate, innovate and build along the way. Don’t give up on your efforts, but strategize for the future. They are comparing the current situation to the dot-com bust decades ago, which ultimately made brands that focused on providing long-term strategies more viable.
The first brands experimenting in this space do not seem to be retreating, but on the contrary they are looking forward to the future. They are scrutinizing their investments in NFT and Web3 and focusing on building long-term strategies. That means fewer PR stunts and more meaningful use cases. The NFT community has a fairly short attention span and moves on to the next thing very quickly. My advice is to be nimble and experimental, but build now when the bull run starts again.
Why? Because Web3 and building a brand’s community go hand in hand.
Connecting offline and online life together through Web3
What makes a solid Web3 strategy? Rather than the mere monetary value of your brand’s NFT assets, community feedback is a key indicator of effectiveness. There is great value in fostering an NFT community because it can help create a brand’s community culture – for now, the bear market allows brands to focus on that. After all, what brand doesn’t want a loyal, engaged audience of fans who truly love what you do?
Community building can happen online or offline, but it is much more powerful when it results from a combination of the two. Fortunately, two years of intermittent isolations have not made us forget the possibilities of meeting people in person – on the contrary, many of us crave it. What makes Web3 exciting is that it facilitates mobility between online and offline. The new network involves much more than just keeping followers on Instagram; it revolves around engaging and connecting with your audience. Meetings are vital to make this possible and above all successful.
Just look at brands like Bored Ape Yacht Club (BAYC) and Dapper Labs, which have built thriving NFT communities. Combining advertising with exclusivity, BAYC invites fans to virtual spaces as well as real-life events. To simply call these events a “party” would be an understatement; they are an effective way to activate and strengthen a community.
This move from online to offline offers new levels of excitement, intimacy and involvement in a group of people. Unlike anything we’ve seen before since the rise of the Internet, Web3 is able to strengthen a sense of community and foster a sense of belonging – at a time when most people spend most of their time in front of screens, we tend to forget how much these connections nourish us.
Market problems or not, fashion and luxury are getting into everyone
Despite the current bear market, fashion and luxury are putting the pedal to the metal to innovate at the speed of digital. While Prada is expanding its Web3 offering and Louis Vuitton is also using NFTs, Balmain has teamed up with MINTNFT to create its own NFT campaign – the list goes on.
Never afraid to innovate, the fashion and luxury industry is putting Web3’s long-term strategies into practice. Purpose? To move beyond the hype and embrace the future, and so should you. Don’t stop or slow down your efforts to innovate just because NFT prices fluctuate. Instead, start learning from successful use cases, seek out inspiring and disruptive partners, and implement your long-term Web3 strategies—your community of fans is counting on you.
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