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When I first introduced myself to the concept of Web3, through NBA Top Shot, which solved the problems of collecting and exchanging sports cards, I immediately saw the parallel to my first days of how to surf basketball and design forums. where my shared interests (and writing) led to faster connections than my unrefined verbal skills could ever.
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With the power of decentralization, transparency, and ownership, Web3 has the potential to solve problems in the sneaker industry, which in recent years has faced growing consumer frustration over issues such as affordability and lack of accessibility. Brands like Nike and Adidas are immersing themselves through mergers and acquisitions and partnerships, but Web3 offers opportunities for industry players of all sizes.
Here’s how to put one together for use with your shoe market.
Related: Here’s a guide for beginners in Crypto, NFTs, and Metaverse
Accessibility issues can be virtually fixed
The world of sneakers is full of challenges from the supply chains to the debt culture from which it operates, but the biggest problem affecting the industry is accessibility: enthusiasts find it harder than ever to access in the shoes they want to wear.
As sneakers have become their own asset class, brands like Nike have become increasingly aware that they are in danger of losing their most obsessed customers. The faithful can only suffer so many losses to robots that monopolize product launches before they get frustrated and leave the community altogether.
This is where Web3 can be used to make sneakers more accessible to consumers who really want to wear their shoes, not just take advantage of them. Web3 is giving brands more transparency to know who their best customers are.
The Know Your Customer (KYC) technology, for example, can be built into blockchain to create digital IDs that give brands a way to authenticate who is buying from your site. While NFTs and social fact sheets give brands a more detailed view of what consumers are loyally investing in them.
Right now, if Nike launches 50 Jordan 1 in a year, it is possible that a dealer with access to effective robots can buy a substantial part of these releases and resell each pair for twice the sale price. However, if shoppers were to have digital IDs directly linked to a real person, brands like Nike could choose to distribute their limited-edition sneakers more evenly. Understanding who your end customers are and their success rate is important to distributing your products in the most equitable way possible.
Creating value beyond the point of sale
For too long Sneaker enthusiasts have shown loyalty to the brands they love without much profit. Web3 has the potential to change that. Consumers can now have traceable ownership of a brand’s assets and with that companies are setting a baseline on who their loyal ones are and exploring ways to reward them beyond the point of sale.
The traditional consumer experience is that you buy your sneakers, they are shipped and delivered. The end. Through metavers, brands can offer virtual experiences that have tangible real-life benefits that occur after delivering a product.
Slipper space service brands are also taking note. Sneaker News has recently launched the Sneaker News Collector Club, a Web3 community that allows its Discord members opportunities to get closer to the brand by chatting with its editorial staff and readers while offering internal access to new releases. In short, Web3 has the ability to help brands quantify with data who their best customers are and take care of how they engage them.
Related: for goal or for worse?
New sources of income will emerge
As Web3 helps brands create virtual worlds with new experiences, companies, both old and new, are forced to reevaluate how they work.
That is, Nike recently acquired RTFKT, the largest NFT player in the sneakers space, which allowed the veteran brand to reach a new virtual audience, one that may not even want physical footwear (let’s talk about margins).
Adidas followed the collaborative route and there have been different responses from the community about who did it right, but the reality is very similar in the early 90’s: there is no definitive answer.
One thing’s for sure, if you’re not researching Web3 for your business right now, you’re really waiting for another player to come and do it better.
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