Start the story: NFT
NFT stands for Non-Fungible Token. It’s a type of digital asset that represents ownership or proof of authenticity of a unique item or piece of content, primarily using blockchain technology. Unlike cryptocurrencies such as Bitcoin or Ethereum, which are fungible and can be exchanged on a one-to-one basis, NFTs are unique and cannot be exchanged on a like-for-like basis. This uniqueness and irreplaceability make them particularly suitable for representing things like art, collectibles, and even real estate in the digital realm. Each NFT has a distinct, non-interchangeable identifier that is recorded in the blockchain, which is a distributed and secure ledger, ensuring the authenticity and ownership of the digital asset.
How NFT can help the Consumers Packaged Goods industry?
NFTs can offer several innovative opportunities for the Consumer Packaged Goods (CPG) industry to engage with consumers, enhance brand loyalty, and create new revenue streams. Here’s how NFTs can be beneficial in the CPG sector:
1. Digital Collectibles and Brand Engagement: NFTs can be used to create digital collectibles offering a new way for brands to engage with their audience. For instance, a brand could issue limited-edition digital artwork or branded virtual items as NFTs. This not only creates exclusivity but also encourages customers to interact more frequently with the brand.
2. Loyalty Programs and Rewards: NFTs can revolutionize traditional loyalty programs. Instead of traditional points, companies can issue NFTs as rewards for certain customer behaviors, like regular purchases or social media engagement. These NFTs could unlock special privileges, discounts, or unique experiences, adding more value than traditional loyalty points.
3. Enhanced Product Transparency and Traceability: By integrating NFTs with supply chain data, CPG companies can offer unparalleled transparency regarding product origin, ingredients, and the journey from production to sale. This can significantly boost consumer trust, especially in sectors like organic food or sustainable products.
4. Innovative Marketing Campaigns: NFTs provide a new medium for creative marketing campaigns. Brands can create interactive, multimedia content as NFTs, offering a unique and immersive experience that goes beyond traditional advertising methods.
5. New Revenue Streams: NFTs open up new avenues for revenue. For example, a portion of secondary sales of an NFT (resales on the market) can be programmed to return to the original issuer (the CPG company), creating a potential continuous revenue stream from a single NFT.
6. Enhanced Customer Insights: The way consumers purchase and interact with NFTs can provide valuable insights into their preferences and behavior. This data can be used to tailor products and marketing strategies more effectively.
7. Counterfeit Prevention: NFTs can serve as a digital certificate of authenticity for high-value goods, helping to combat counterfeiting and ensuring customers that they are purchasing genuine products.
In integrating NFTs, it’s important for CPG companies to consider the alignment with their brand values, customer base, and the legal and environmental implications of blockchain technology. Proper execution can not only enhance customer engagement and brand loyalty but also open up innovative avenues for growth and differentiation in the market.
NTF first 10 comers in CPG and HoReCa
In the Consumer Packaged Goods (CPG) sector, some companies have started to explore and integrate Non-Fungible Tokens (NFTs) as a part of their marketing strategies, customer engagement, and brand building. Here’s a list of companies from the CPG sector that have worked with NFTs:
1. Coca-Cola: Coca-Cola auctioned its first NFT collectibles to celebrate International Friendship Day, with all proceeds going to charity.
2. Budweiser: The beer brand has ventured into NFTs by buying a beer-related domain on the Ethereum blockchain and releasing its own NFT collections.
3. Taco Bell: The fast-food chain released NFT art to support the Live Más Scholarship through the Taco Bell Foundation.
4. Pringles: Known for its potato chips, Pringles created a “CryptoCrisp” virtual flavor NFT.
5. Unilever (Ben & Jerry’s): Although not directly issuing NFTs, Ben & Jerry’s, a subsidiary of Unilever, has shown interest in the blockchain and crypto space.
6. PepsiCo: PepsiCo launched an NFT collection called “Pepsi Mic Drop” which is inspired by the brand’s music heritage.
7. Clinique: The skincare and cosmetics brand from Estée Lauder Companies created NFT campaigns to engage with customers uniquely and innovatively.
8. L’Oréal (NYX Professional Makeup): They offered NFTs linked to tangible products during a promotional event.
9. Ritter Sport, the renowned German chocolate brand, made a significant leap into the digital realm by launching its own NFT collection titled “Art of the Square.”
10. Starbucks has innovatively integrated NFTs into its customer engagement strategy through the Starbucks Odyssey program.
These companies have utilized NFTs for various purposes, including promotional campaigns, customer engagement, and supporting charitable causes. As the NFT space evolves, more CPG companies will likely explore innovative ways to incorporate NFTs into their business strategies.
NFT Market Assessment
According to research by “Research and Markets”, the popularity of NFTs in the Foods and Beverage industry still is growing:
As Food and Beverage is one of the significant markets, we suppose that the share of the whole CPG NFT Market will keep the current proportion NFT/whole market (0.017%). Then NFT in CPG would be about 2.7 Bn by 2028. Our vision is Ordinals technology will develop rapidly and even enhance the classical NFT market in times.
What are Ordinals and how they are connected to NFT
Do you know that Satoshis are the smallest units of Bitcoin? One Bitcoin is made up of 100 million Satoshis. Individual satoshis can be inscribed with special content, creating unique Bitcoin-native digital artifacts (more commonly known as NFTs) that can be held in Bitcoin wallets and transferred using Bitcoin transactions. Inscriptions are as durable, immutable, secure, and decentralized as Bitcoin itself.
Ordinal Theory is a numbering scheme for satoshis that allows tracking and transferring individual sats. These numbers are called ordinal numbers. Satoshis are numbered in the order in which they’re mined.
With this, you can represent all kinds of digital items like NFTs, financial tokens, and even sales orders directly on the Bitcoin network. You don’t need any extra networks or tokens to make this work.
What is on offer for CPG?
The logical way for CPG companies is to start to use Ordinals technology to leverage their efforts with NFT.
As we explained, Ordinals technology allows to enhancement of the basic concept of NFT beyond pictures to “digital artifacts”, allowing storage on blockchain valuable structural information, for example, specific for product subscriptions: # of orders, ordering data, amount, etc.
Ordinals Goods enhanced basic Ordinals technology by protocol implements the Ordinals Theory and adopts original technology for goods-based industrial subscriptions.
Indeed, our proposal for CPG companies is very obvious: Use our OG Protocol to pace their product subscriptions as electronic NFT-based subscriptions on the numbers of worldwide NFT marketplaces. In the future, we provide our own Ordinals Marketplace.
Ordinals Goods solution leveraging Bitcoin Ordinals/NFT technology’s power to create direct peer-to-peer communication with your customers via issuing NFT-based product subscriptions. Simultaneously, it could be used as an investment instrument.
In such a way, the Ordinals Goods solution offers a range of benefits for the CPG industry:
0. New segment of consumers – crypto and Bitcoin community
1. Direct Engagement with Consumers: Our blockchain-based platform lets you publish product subscriptions and collect pre-orders directly from consumers, streamlining the sales process.
2. Innovative Customer Engagement: With NFTs, we offer new ways for customers to interact with your products, enhancing brand loyalty and customer experience.
3. Immediate and Secure Transactions: Implementing smart contracts ensures timely, transparent, and secure transactions, addressing the common issue of delayed payments in the industry.
Thus, our solution can significantly enhance and innovate the classical e-commerce model of CPG companies and simultaneously boost their efficiency.
