1/ In the early 2010s, retail brands missed out on DTC because:
- the market was too small
- too big of a paradigm shift
The digitally native brands who "got it" won big time.
The same thing will happen with Web3 and ecommerce 🧵
- the market was too small
- too big of a paradigm shift
The digitally native brands who "got it" won big time.
The same thing will happen with Web3 and ecommerce 🧵
2/ The "crypto-native" ecommerce playbook will be as novel to DTC brands, as DTC was to traditional retail.
Here's what it might look like:
Here's what it might look like:
3/ Crowdfunding will be in vogue again.
A pre-launch brand will raise capital from a community of enthusiasts who want to see the project come to life.
A pre-launch brand will raise capital from a community of enthusiasts who want to see the project come to life.
4/ Backers will receive NFTs based on the amount they pledge.
The NFTs serve as a social proof badge but they also have interesting mechanics.
The NFTs serve as a social proof badge but they also have interesting mechanics.
5/ When the brand launches, a smart contract is integrated into their checkout flow.
This allows NFT holders to receive a small % of all future sales.
This allows NFT holders to receive a small % of all future sales.
6/ The more successful the brand gets, the more money NFT holders will make.
The incentivization model is sound, no ponzi scheme required.
The incentivization model is sound, no ponzi scheme required.
7/ This creates a turbo charged community that helps the brand spread like wildfire.
8/ There will also be a secondary market for the NFTs themselves.
In part because they have a real cashflow stream but also because the digital asset itself will accrue value.
In part because they have a real cashflow stream but also because the digital asset itself will accrue value.
9/ Why will they accrue value?
The NFTs might give you access to exclusive product drops, the ability to participate in shaping a new product launch, etc.
The NFTs might give you access to exclusive product drops, the ability to participate in shaping a new product launch, etc.
10/ And as the metaverse starts to assemble, digital assets will have more utility.
So the crypto native brand will provide a digital equivalent for every physical product.
So the crypto native brand will provide a digital equivalent for every physical product.
11/ You might buy a pair of shoes and get the digital copy as an NFT receipt.
So now your digital wardrobe matches your physical one.
So now your digital wardrobe matches your physical one.
12/ If executed well, these novel dynamics can lead to the vertical growth curves brands enjoyed with paid social in the 2010s.
13/ Only after the success of the crypto-native brands becomes obvious will the rest of the industry start to follow.
14/ All that said, it's still VERY early. So don't feel compelled to drop everything you're doing and jump in.
But it is certainly worth your time to pay attention.
But it is certainly worth your time to pay attention.
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