How does NFT promote virtual commodity consumption?

Ownership of items may be the most successful concept in the history of human consumption, because it stimulates human possessiveness, and the non-homogenization represented by NFT just caters to this feeling of people. First of all, unique means rarity. There is only one in the world. Its replica may appear on the wall of the home, on the poster of the magazine, on the screen of the TV, etc. And other places, but only, and only the one in the Louvre in Paris is the original and the most valuable.

And this example can also explain why NFT has detonated the upsurge of global digital commodity consumption. The emergence of NFT has successfully broken the embarrassing situation that digital assets can be easily copied and spread in the trading environment.

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Going back to the e-commerce application scenarios we care about, whether it is from the stimulation of consumption desire or from the perspective of providing technical convenience for the confirmation and transaction of unique digital assets, the market potential of NFT in e-commerce sales is Very impressive.

In the past, it was not easy for many digital content creators to sell and monetize their works online, because the uniqueness of the works was greatly backlogged due to the reproducible characteristics, which made it difficult to stimulate consumers’ desire to buy. But due to the uniqueness and liquidity of NFTs, they can get rid of the restrictions of a single platform without worrying about being infringed or copied, leaving their works permanently on the blockchain and getting benefits. Therefore, as a producer and seller of digital assets, any individual artist, brand party, etc.

As an e-commerce seller, how to use NFT to help sell?

At present, major companies at home and abroad have paid attention to the broad sales prospects of NFT, and e-commerce sellers who are interested in this trend, whether they are seeking breakthroughs or transformation , need to combine their own brand positioning and business models, and launch targeted Its own NFT sales strategy to achieve the ultimate goal of combining virtual and reality to help sales.

Digital brand merchants: core IP is the killer, NFT completes the closed sales loop

The first is those merchants who regard the sale of digital goods as their main business. NFT can be said to have brought them a long-lost business model that can be continuously realized . Due to the lack of effective monetization mechanisms and platforms, individuals or companies that have previously practiced content creation can only bring their works to the market in a cheap or free form.

But now it is not only content merchants, but also influential individuals in the market can monetize the digital goods created by themselves, opening the door to consumers who are interested in collecting in the market. At the same time, if we go further, at the beginning of the creation of digital content, the seller has incorporated a royalty mechanism into the underlying code of the NFT, then in any future resale process of the product, the original creator will automatically receive a stable Royalty income, and subsequent long-term benefits will be guaranteed.

However, it is worth noting that because it is a scarce digital commodity, the threshold for consumers to purchase will be higher than that of physical commodities. Only with sufficient cultural significance can consumers impress consumers and generate the desire to buy and collect. This means that mastering enough influence or core IP is the brand barrier to selling digital goods. This barrier can be the endorsement of an artist’s influence, or it can be a trendy cultural element within the cultural circle, or a unique scarcity that is welcomed by the market in a certain aspect, etc.

NFT Works Phantom Bear

A more representative example is that in 2021, the metaverse platform Ezek and Jay Chou’s streetwear brand PHANTACi will launch the first limited-edition NFT project Phanta Bear (phantom bear), with a number of 10,000 issued, each priced at 0.26 ether ( about 6,200 yuan), with a total price of over 62 million yuan. Due to Jay Chou’s influence, a large number of users poured into the platform’s sales channel as soon as it opened. 3,000 units were sold within 5 minutes, and all were sold out in about 40 minutes.

Physical brand merchants: NFT empowers brand value, and virtual peripherals create a circle effect
And those brands whose original main business is the sales of physical goods are also actively embracing the NFT industry after seeing the market potential of virtual goods . For these merchants, they can improve their product matrix by selling NFT digital goods. For example, launching peripheral derivatives related to brand elements is a good way.

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