Before the rise of Web3, brands primarily relied on Web2 channels, such as social media, to connect with consumers. In fact, Recent statistics show this 77 percent of companies use social media to reach customers.
However, consumer engagement strategies are evolving. With the maturation of new technologies such as blockchain and artificial intelligence, progressive brands have started to integrate these elements to better connect with consumers.
Web3 technology enables co-creation of beauty products
Jana Bobosikova, co-founder of community commerce company KIKI World, told Cryptonews that while the internet provides a platform for brands to be seen, new technologies can ensure that online products are not just consumed passively.
“KIKI is on a mission to empower passionate consumers,” said Bobosikova. “We founded the company with the simple vision that customers and communities should be rewarded and able to participate in the success of what they stand for.”
To ensure this, Bobosikova explained that KIKI uses blockchain infrastructure to connect its community with products that may interest them.
Known as the “KIKI platform,” Bobosikova said about this permissionless network allows creators, brands, or curious individuals to create campaigns that reward their audience for participating.
“Our blockchain infrastructure unlocks connectivity between communities, products and interests, building a curable network of data that can be used to build new experiences, connections and products,” she explained.
Today we’re excited to share the phased rollout of a permissionless community commerce platform and @a16zcrypto and @EsteeLauder Companies as our initial funding round partners.
KIKI sees the internet and the communities it connects as the engine that creates and innovates,… pic.twitter.com/sxXgKUllox
— KIKI World (@kikiworld_) April 9, 2024
To put this into perspective, Bobosikova shared that the KIKI platform recently launched a number of “multiplayer brands.”
“This refers to products that allow thousands of customers to participate in what we build next,” she said.
For example, Bobosikova noted that in May 2023 KIKI launched a campaign that resulted in the first co-creation product.
“The ‘Pretty Nail Graffiti in Pearl’ was KIKI’s first community-made product. Since then, we have launched four additional product lines, including the SDK Skin Development Kit and Play Paint Marker, a 3D Face and Body Paint,” said Bobosikova.
According to Bobosikova, all of these products were created through community input and voting mechanisms. She added that participants will be rewarded for their actions with “KIKI points,” or digital collectibles.
Digital collectibles are a crucial part of KIKI’s infrastructure. Bobosikova explained that KIKI’s on-chain collectibles and the metadata they represent enable engagement logic around user interest.
“Bringing together on- and off-chain campaign interaction data tied to user preferences and intent allows our ecosystem to build rich profiles to better understand and create products our audiences really want,” she said. “Our smart contracts enable the seamless integration of abstracted on-chain intent records into easy-to-use, trusted user experiences. This means we can leverage verifiable on-chain records while maximizing utility for a broader consumer base.”
Although this concept may be new to most brands, KIKI recently announced a $7 million funding round was led Through a16z crypto and the NIV of the Estée Lauder Companies.
Shana Randhava, Senior Vice President at NIV, said: “Consumers are at the heart of what we do at The Estée Lauder Companies.”
“That’s why we’re excited about the KIKI team’s vision to find new ways to put the customer first,” she added.
NFC-compatible mode allows connection with customers
Mode suitable for Near Field Communication (NFC). also ensures that brands can better connect with customers.
Cathy Hackl, CEO of spatial computing and artificial intelligence company Spatial Dynamics, told Cryptonews that she believes NFC-connected fashion can provide a direct point of contact and communication channel for consumers.
Early use cases with NFC have already begun to demonstrate this. For example, Tom Wallace, founder of connected goods ecosystem CreatedBy, told Cryptonews that his brand connects physical goods with digital “tokenized twins.”
“Tokenized twins are placed on a blockchain network using CreatedBy NFC tags, allowing brands to share the full story and journey of each product,” said Wallace. “This increases transparency around purchasing, production and ethical practices.”
According to Wallace, digital twins living on blockchain networks solve a critical problem for brands.
“Consumers are increasingly demanding more information and insight into the products they buy,” he says. “Blockchain-based authentication and storytelling capabilities directly address this need for sustainable sourcing and supply chain transparency, while also providing the opportunity for ongoing customer engagement.”
Wallace explained that CreatedBy recently conducted a case study with Wonder Raw, a sustainable clothing brand that uses trace-certified organic cotton and vegan inks.
Wallace shared that CreatedBy was able to anchor Wonder Raw’s sustainable journey and validation of the materials used by encoding data into NFC tags affixed to it. to individual garments.
Source: CreatedBy_“The second half of this is the ongoing engagement between the brand and the owner(s) in programming activations throughout the life cycle of the garment,” Wallace added. “This includes end-of-life upcycling into a ‘new’ product, retaining the on-chain data of the original product.”
Wallace further pointed out that CreatedBy’s “Tech Layer” encrypts all product information and activations. He noted that physical goods can be coded with
applied NFC tags – and these can be activated by any mobile phone to launch authentication, validation, brand storytelling and product engagement experiences for consumers.
Will more brands use Web3 technology to connect with consumers?
While platforms like KIKI and CreatedBy enable better connections between consumers and brands, mainstream adoption may take some time.
For example, Hackl pointed out that many brands have halted their Web3 initiatives.
“This has become especially true as brands focus on their AI efforts,” she added.
Wallace further noted that education is one of the biggest barriers to adoption.
“This has always been a problem for many brands using Web3 technology,” he says. “I also think Web3 has become a victim of its own hype. There is currently a stigma attached to Web3 and anything related to crypto, even though crypto is making a huge comeback.”
Challenges aside, Hackl noted that major brands like Louis Vuitton remain committed to their Web3 efforts. Vogue Business reported that Louis Vuitton opened last September a Discord server designed to make connections with the brand’s online community and NFT holders.
Hackl mentioned that too blockchain use cases for provenance tracking will likely emerge as AI continues to develop.
“Once NFC-enabled fashion can communicate with the AI being put into new devices, much of that fashion will be early prototypes and early examples of items that can transcend the physical and virtual,” she said.