How are Major Brands Tapping into the NFT Market?

Key Insights

• Major brands from various industries have launched NFT collections as a source of continued marketing or to supplement their existing business infrastructure.
• Players in the collectibles industry quickly found an apparent product-market fit in pairing NFTs with unique physical collectibles. Emerging e-commerce technologies, like NFT marketplaces, are expected to increase the overall sector revenue by 50% over the next 10 years.
• Brands in other product sectors have tested incentivization tactics like physical merchandise, charitable donations, and unique experiences to generate a sustainable community for their current and future consumers.

The NFT market has seen better days. Since the recent market downturn, investors have hardly been opting to buy liquid assets, let alone relatively illiquid NFTs. While many digital art-based collections have faced the harsh realities of the current bear market, certain consumer brands have seen the market downturn as a time to build something with real utility. In the current market, many brands are incorporating NFTs into their existing business framework or issuing collections to promote brand awareness. But what separates a project's moment in the spotlight from a long-term strategy?

NFTs & Physical Collectibles