You can tokenize everything through NFTs. Therefore new opportunities for brands of all branches arise to enter the futuristic digital world. It gives brands the possibility to engage, connect and create value with brand loyalists, collectors and investors in a modernized way.1
Beside digital videos, songs and collectible cards from sports and music brands, other branches gained interest for all sorts of creative NFTs as from the fashion, luxury, charity, real estate industry1. Besides that they can become co-creators of their business, especially through new incentive systems through their customers.
Nike Use Case:
Nike is the world's leading sporting goods company - now the corporation is trying to gain a foothold in virtual worlds and is pushing into two key crypto areas in a big way: NFTs and the Metaverse. The strategy: Nike works on digital transformation, aims to combine sports, crypto tech, gaming and culture. To get one step closer to its goal, Nike acquired sneaker NFT platform RTFKT in late 2021.2
This strategy seems to be paying off - of all the brands active in the NFT sector, the sporting goods manufacturer has raised the most money so far. Accordingly, Nike has earned a whole 185.27 million US dollars from a total of 67,251 NFT transactions, according to data from Dune Analytics. Apparently Nike was able to score particularly well in resales, earning a whole 92.1 million euro in this area.3
Another source of revenue this year in particular was CryptoKicks, which Nike launched in April 2022 on its recently acquired RTFKT Studios platform. CryptoKicks are a collection of customizable NFT sneakers, which generated 3,100 Ethereum ($8,720,000) in trade volume in just three days.4
NFTs work hand in hand with authenticity and rarity, which fits perfectly with the world of trainers. The process of collecting unique sneakers as virtual assets is similar to the physical one. The goal: to create excitement around the pair and a feeling of exclusivity when acquiring it. While physical sneakers can be copied and therefore minimize the exclusivity of the product, digital assets are unique and traceable.5
3Ledger Insights (August 23, 2022): Nike leads other brands in revenues from NFTs https://www.google.com/url?q=https://www.ledgerinsights.com/nike-brands-revenues-nfts/&sa=D&source=docs&ust=1663186074150410&usg=AOvVaw2b7priqMG83sxZXet1yZmG