German Giants Adopt NFTs: Bridging Traditional Business with the Digital World
Summary:
Traditional German companies such as Deutsche Post, Lufthansa, and Adidas are embracing the utilization of nonfungible tokens (NFTs) for various purposes including selling digital products, building digital communities, and enhancing customer engagement. Deutsche Post will be releasing a collectible stamp series with each stamp represented as an NFT, while Lufthansa has developed the Uptrip mobile application turning travel experiences into NFT-based rewards. Fashion brands Adidas and Hugo Boss are exploring NFTs by creating digital collectibles and virtual fashion items, and even German confectionery brands like Ritter Sport and Haribo are crafting NFT collections to connect with a tech-savvy audience. The article underscores how NFTs are moving beyond being just an investment opportunity, transitioning to a mainstream marketing tool for businesses.
In general, nonfungible tokens (NFTs) serve two main functions: acting as a medium of exchange for digital assets (such as digital artwork or virtual fashion) and cultivating digital communities (exclusive membership groups, event admission). Fashion labels can sell digital versions of their products, firms can offer membership via NFTs, and musicians can organize exclusive gigs for fans. Established German companies are now recognizing the prospective benefits NFT technology can offer to enhance and promote their business.
German postal service Deutsche Post, blends NFTs with AI, planning to issue its first limited-edition collectible stamp on November 2, 2023. This classic adhesive stamp will be accompanied by a digital piece — an NFT communicating ownership of the corresponding stamp. The introductory stamp in the series will feature an AI-generated pixelated image of the iconic Brandenburg Gate, with future stamps depicting other German landmarks. It's uncertain whether the NFT stamp collection will be a commercial hit, still, it's an important stride for Deutsche Post to transition into the boundaries of the digital universe.
Lufthansa, employs NFT art for its various loyalty schemes, allowing a more rewarding and engaging experience for customers, and offering a fresh way for businesses to interact and build brand loyalty. An illustration of such a program is Lufthansa’s NFT loyalty initiative on the Polygon network. In joint venture with Lufthansa Innovation Hub and Miles & More, its frequent flyer program, Lufthansa has devised the Uptrip mobile application that allows passengers to turn their travel experiences into NFTs. These NFTs can then be exchanged for rewards such as bonus miles and business lounge vouchers.
Christopher Siegloch, head of program development and services at Miles & More, mentions the app has garnered considerable attention among Lufthansa customers. Since its initiation, over 20,000 users have registered, and in excess of 200,000 collectible cards have been issued. Siegloch emphasizes the importance of gamification elements in familiarizing participants with Web3 technologies such as NFTs, and the app effectively brings the enthusiasm for collecting into the digital sphere.
Moreover, in the latter half of 2023, the app will introduce a digital marketplace where users can trade and sell their NFTs, with special NFT reward deals scheduled for the future.
NFTs are also engaging with fashion brands. German clothing company Adidas continues to refine its Web3 strategy by utilizing NFTs to devise new ways to engage with its community of athletes, sneaker enthusiasts, and sports fans. Adidas recently launched a limited-edition series of NFT sneakers modeled on their iconic footwear designs. These digital sneakers can be exhibited in virtual environments, enabling users to show off their affinity for the brand in the metaverse.
Adidas also continues to find novel ways of using the full potential of NFTs to stimulate its community. The last example is The Adidas /// Studio, or Triple Stripes Studio, which initiated a Web3-based digital artist-in-residency program to showcase and aid emerging creators in the NFT space.
Another German fashion leader, Hugo Boss, has also forayed into the NFT sector focusing on fashion in the metaverse domain. The company collaborated with notable digital fashion designers to produce a series of exclusive NFT clothing items. The digital avatar's users can don these digital fashion pieces in the virtual universe, permitting users to showcase style even in the digital world.
Mercedes-Benz shares its rich history of over 130 years with a committed fanbase of nostalgia enthusiasts and collectors. The brand's iconic models, classic cars and related artifacts, whether in their original form or as miniature models and toys, continue to retain appeal. Commensurate with its strategic path, the German automaker is exploring the Web3 space, launching Mercedes-Benz NXT to enhance its engagement with the community.
Several German food labels are utilizing innovative marketing strategies to connect with a tech-savvy audience by releasing their own NFT collections. For instance, confectioner Katjes issued an NFT collection of three unicorn infants named Dash, Willow and Sparkles in April 2023. Another German confectionery firm Haribo, known for its gummy bear sweets, has also delved into the NFT universe. In April 2023, the company applied for NFT trademarks in the United States, signaling its plans to expand its brand into the digital universe.
Adidas, Haribo, Lufthansa, Deutsche Post, and other traditional German brands have joined the expanding list of companies venturing into the NFT sector. This development signifies a profound shift in the perception of NFTs, as they're no longer seen merely as a unique investment opportunity. As a result, NFTs are gradually being viewed as a mainstream marketing tool and a way to experiment with new ideas that link the virtual and physical universes and form new communities.
Published At
10/27/2023 1:07:00 PM
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