Since the Web came into existence, there’s always been a commotion. Through the course of its evolution, many fields and sectors have realized the benefits that the Web can offer. Post the boom of the world wide web, with Web 2, we saw centralized platforms such as Google, Facebook, and Apple entering the picture and systemizing the way consumers interact through various mediums. Now with the introduction of Web 3, the interaction has become closer and more direct. In this blog, let’s discuss how brands have established a space for themselves in Web3 and what the future of brands in Web 3 looks like.
Brands In Web 2 And Web 3
Brands have found a sense of comfort working inside the walls Web2. This is now being questioned by the development of Web3. Brands are slowly moving away from Web2 as it is subjected to many controversies. Compared to the centralized system of Web2, Web 3.0 helps the brands build a direct relationship with the customers.
When the Web came into the picture, many brands missed out on enjoying its essence. For a long time, the skepticism that was surrounding the internet restricted a huge crowd from not exploring it. And today, we know how far we have come. Years later, we do not want to experience the same situation. Hence, it is important for brands to look into the perks and benefits that Web 3 will offer and explore it at the earliest.
What Does Web3 Have To Offer For These Brands?
The early birds of the Web 3 space are experimenting with Web 3 to understand their consumer behavior. It also helps brands to understand their niche. Web 3 is a great way to interact and manage the community. Brands can collaborate with their audience and provide better customer service and beneficiary programs. Web 3 has also enabled brands to add value to real-time assets or objects in the real world.
Brands are adopting different approaches to Web3. Let’s try and understand some of them.
Virtual Products And Hybrid Products
Some brands are creating their own product in Web3.0. Brands partner with various designers and producers to create their own assets in Web3.0.
In some cases, the companies hold full ownership of the avatars and NFTs in a platform. Companies can decide how these avatars will look and the digital assets to be used. This has helped brands to attract the millennial generation.
The entry of luxury brands into the Web3.0 space shows the brands are open-minded to exploring the Web3.0 space. For example, Kerala, a luxury company, has a team exclusively dedicated to Web 3.0. This has enabled its brands, Gucci and Balenciaga, to venture into the Metaverse.
Web3 also has the potential to add value to real-world products with digital information. Information about a certain product is recorded on a blockchain in terms of smart contracts that automatically carry out relevant events and actions based on the terms and conditions. The recorded data will have information regarding the production, supply, design, etc. The information that is recorded on the blockchain is immutable. The physical item can now become a collectible because of its uniqueness and authenticity.
The ownership of any asset in Web3.0 is decentralized. On the other hand, it is also distributed. Yes! The ownership of an asset is distributed and collective. This means that the company cannot give the ownership of an asset to one person; instead, multiple people will be collectively sharing the ownership of an asset. This new concept is called collective ownership. Currently, there are not many brands making use of this idea. But if more brands explore collective ownership, the brands will be able to create a community of like-minded people. Collective ownership also opens avenues for brands to manage their community.
Very similar to the retail industry, we have the gaming industry, which is majorly community oriented. There are high chances for the gaming industry to explore the Web3.0 space.
NFTs and Metaverse are two important elements that enable Web3.0. Web3.0 games have entirely changed the direction of how games are played so far. From being a passive player behind the screen to experiencing immersive games, Web3 has helped gamers change their perceptions and gameplay. In NFT games, gamers can own the in-game assets in a game completely without giving control over it to a third party.
In a traditional gaming setup, this wouldn’t be possible. When the game ends or if the gamer loses interest, the assets in the game go obsolete. But with the NFT gaming platform, the gamers can fully own the assets acquired or purchased.
Brands should be able to leverage the best of the Web3.0 world. As discussed in the blog, Web3.0 can be used by brands to build an image for themselves and market their product better. It also helps brands to provide better services for their customers and build a new community. This will invariably improve the experiences for the consumers.