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Last month, there were rumors circulating that Nike might shut down RTFKT, the innovative digital sneaker brand it acquired for a staggering $1 billion in 2021. Although these rumors turned out to be false, it led to a deeper examination of whether web3, with its promises of decentralization and digital ownership, has truly delivered for consumer brands. In my opinion, it has not.
Large consumer brands are simply too rigid and risk-averse to effectively innovate within this new paradigm. They have only superficially adopted web3 mechanics, driven by short-term financial gains rather than genuine technological integration. As a result, they have failed to find meaningful product-market fit.
The failure of large brands to innovate is not a new phenomenon. Kodak, a pioneer in digital photography, clung to its film business and missed the digital revolution. Blockbuster ignored the rise of online streaming and paid the ultimate price. Similarly, today’s big brands are repeating these mistakes with web3. They dabble in NFTs and blockchain not out of a genuine desire to innovate, but as a reactionary move to market trends. This superficial adoption lacks the depth and understanding necessary to leverage web3’s full potential.
From a philosophical perspective, this failure to innovate stems from the very nature of large corporations. They are hierarchical and centralized structures that prioritize stability and predictability over experimentation and risk-taking. In contrast, web3 represents a realm of decentralization and fluidity. It’s not surprising that large brands struggle to navigate this space; it goes against their very essence.
Nike’s acquisition of RTFKT was seen as a bold move into the digital realm. However, despite the initial excitement, Nike has struggled to integrate its innovative spirit into its broader strategy. The recent shutdown rumors highlight the broader issue: large brands adopt web3 technologies for their financial potential, not for genuine innovation. The result is a series of half-hearted projects that fail to resonate with consumers.
This superficiality extends beyond Nike. Louis Vuitton’s foray into blockchain for product authentication, while aligning with the brand’s emphasis on luxury and authenticity, has not significantly impacted consumer engagement. The use of blockchain here is more of a marketing gimmick than a transformative tool. It’s a hollow signifier devoid of true meaning.
Louis Vuitton has also launched several notable NFT initiatives, such as the “Louis: The Game” mobile app, which celebrated the brand’s 200th anniversary. Despite achieving over two million downloads, the impact on consumer engagement remains questionable, as the NFTs are non-transferable and primarily serve as collectibles without broader utility. In a more recent venture, Louis Vuitton introduced the “VIA Treasure Trunk” NFTs, targeting the brand’s elite clientele. However, this approach highlights the brand’s focus on exclusivity rather than democratizing access to digital ownership.
The true potential of web3 lies in its ability to democratize digital interactions and ownership. However, big brands have largely failed to tap into this potential. It is the smaller, more agile companies that are at the forefront of web3 innovation. These companies, like 9dcc and the original form of RTFKT, are experimenting with new models of ownership, community engagement, and digital experiences that large brands can’t or won’t pursue.
In a sense, these smaller players are the nomads of the digital realm, traversing the smooth space of web3 with ease. They are not bound by the rigid structures of corporate hierarchies and can explore the full potential of this new frontier. They embody the concept of the rhizome, a decentralized, non-hierarchical system that can grow and adapt in any direction.
For web3 to reach its full potential in consumer applications, it must be led by these smaller innovators. They are the ones pushing the boundaries, experimenting with new technologies, and finding genuine ways to engage with consumers. Large brands need to recognize their limitations and perhaps look to these smaller players for inspiration.
Web3 is not just about adding an NFT to a product and calling it a day. It requires a complete rethinking of the consumer experience, from ownership to engagement to value creation. Until large brands understand this, they will continue to miss the mark, and the true potential of web3 will remain unrealized.
The philosophical implications are clear: the future belongs to those who can navigate the smooth space of web3, not those who cling to the rigid structures of the past. It belongs to the nomads, the rhizomes, and the innovators who are not afraid to experiment and fail. True innovation is not about financial gain, but about pushing the boundaries of what’s possible.
In conclusion, the failure of large consumer brands to drive web3 adoption highlights a fundamental truth: innovation requires more than just financial investment. It requires a willingness to take risks, experiment, and truly understand the technology. Until big brands embrace this mindset, the future of web3 will be shaped by the bold, nimble, and genuinely innovative.
The question is not whether web3 will transform consumer experiences, but who will be at the forefront of this transformation. I believe the answer lies in the decentralized, fluid, and endlessly creative realm of the small and agile. The future is theirs to seize.
Read more: Beyond the hype: Web3 is in dire need of a rebrand | Opinion