A quick look at the past:
The Web3 “Gold Rush” of 2021-2022

If you have been in the Web3 space for a few years, you certainly remember that the late 2021 and early 2022 period saw an unprecedented surge of interest in Web3 from global brands - In other words, sh*t was crazy.

Fueled by the meteoric rise of cryptocurrencies and the explosive growth of NFTs, companies rushed to launch their “Web3 activations” - in many cases without really understanding what they were doing…

From luxury fashion houses to fast food giants, everyone wanted a piece of the Web3 action.

However, not all ventures were successful. Many projects backed by global brands failed to maintain long-term engagement - and in Web3 terms, “long term” often translates to “few months”.

But on the bright side, this whole thing highlighted a common pitfall: underestimating the complexities and unique culture of the Web3 space.

From the specific vocabulary to understanding the “vibes” and people’s expectations, it was (and still is) a very complex space to dive into.

That rapid entry into Web3 was often driven by FOMO (fear of missing out), leading to projects that lacked strategic depth and understanding of the new, unexplored space.
Many companies jumped in just because “they had to”.

The result? Many initiatives either underperformed or were quietly shelved.
This period serves as a reminder that Web3, while full of potential, requires more than just a high-profile name to succeed.

Yet, some brands have shown resilience and adaptability. Or, at the very least, willingness to learn and adapt.
Some companies are still building upon their first entry in Web3. Several names from the 2021-22 class keep pushing their activations and truly understanding (and thriving) in this new environment.

Yes, Starbucks’ Web3 experience/trial was closed, but brands like Gucci and Louis Vuitton, have continued to explore it with innovative projects, maintaining a steady presence in the space.

What I’m trying to say is that the initial “hype” may have scared a few brands, but for those willing to learn and adapt, Web3 offers endless opportunities for growth and engagement.

And let’s be honest: any new industry or technology needs time for its players to understand what works, how to do things, etc. And Web3 is no different.

Beyond the Hype:
Web3 and its current landscape

As said a few lines above, just like any new industry, Web3 needed time to mature.

The initial rush was wild, but now, a few years down the line, we're seeing a more measured, strategic approach. Web3 has moved from the “get in quick” mentality to “build something meaningful” and that's a game-changer.

(This obviously does not mean that hype-driven projects are out of conversation)

Based on everything I have learned from my experiences working alongside Fortune 500 brands for the last few years, I believe these changes fit with something I have been saying for a while (so there’s a big chance you’ve already seen this 😅):

So once again I repeat: 

Much more than “How do we ‘use Web3’ in our company”, the question should be:
“What can Web3 do to help you fix Engagement, Loyalty, and Growth problems?”

And around seven months ago, I posted this on my LinkedIn:

(That post also contains a quick video that you can watch by clicking here)

In practical terms, I see this current moment in Web3 as brands no longer just “forcing” their ways into Web3, but rather integrating Web3 technologies into their operations with clear goals in mind.

This shift is evident in the way companies are leveraging blockchain for transparency, NFTs for brand engagement, and decentralized platforms for community building for example.

Another important thing that must be highlighted is that the infrastructure has matured significantly. Advances in blockchain scalability and security have made it possible for brands to execute large-scale projects confidently.

Regulatory clarity has also improved - yes, there’s a lot of room for improvement and there’s also a constant “fight” between governments, companies, the crypto community, etc, but we have certainly advanced since 2021.
And whether we like it or not, this “stability” is crucial for big brands looking to make long-term investments in Web3, which tends to translate into mass adoption.

But it’s still Web3! ✊ 

Despite these advancements, the essence of Web3 remains rooted in decentralization and user empowerment.

Brands are more aware of the community-driven ethos of Web3, ensuring their projects align with the values and expectations of their audience.
Successful initiatives now often involve extensive collaboration with Web3 communities, creating more authentic and engaging experiences.

Today, the focus is on creating long-term value rather than chasing quick wins. Brands that prioritize authenticity, innovation, and meaningful engagement are the ones that will thrive in this space.

Web3 is no longer just about being part of the latest trend; it's about building something that lasts and resonates deeply with users.

So before we jump into a really interesting practical case, let’s break down the key changes and the current landscape of Web3 for brands:

• Shift from hype to strategy: Brands now focus on sustainable growth and real-world applications.

• Technological advancements: Improved blockchain scalability and security support larger projects.

• Regulatory clarity: More defined regulations in key markets reduce uncertainty and promote adoption.

• Community collaboration: Successful projects involve collaboration with Web3 communities and respect Web3 ethos.

• Long-term value creation: The emphasis is on creating user-centric, innovative, and authentic projects.

Spotlight: Hugo Boss

Web3 in fashion for loyalty and customer engagement

Hugo Boss, renowned for its high-quality fashion and innovative designs, took a step into the Web3 space with its latest initiative.

Recognizing the potential of blockchain technology to enhance customer engagement and loyalty, the brand has launched the "Hugo Boss XP" program.

This program merges the digital and physical worlds, providing a new level of engagement for its customers. It leverages blockchain to offer unique experiences and rewards, blending fashion with cutting-edge digital tools.

The program introduces NFTs as part of its loyalty rewards, allowing customers to collect, trade, and showcase their digital assets. These NFTs can be earned through various interactions with the brand, such as purchases, event participation, and online engagement.

Each NFT offers exclusive benefits, such as early access to new collections, special discounts, and invitations to VIP events, which means interaction and brand engagement in innovative ways.

One of the great features of Hugo Boss XP is its focus on creating a seamless experience for customers, as the program integrates with existing customer accounts, making it easy for users to track their rewards and NFTs.

The company seems to also be aiming at fostering a sense of community among its customers: Members will be able to use their NFTs to access exclusive content and experiences.

Here are the key points in Hugo Boss's initiative:

• NFT integration: Customers can earn and trade NFTs as part of their loyalty rewards.

• Exclusive benefits: NFTs offer perks like early access to collections, special discounts, and VIP event invitations.

• Seamless experience: Integration with existing customer accounts for easy tracking of rewards and NFTs.

• Community building: Virtual events and fashion shows enhance customer engagement.

• Transparency and security: Blockchain technology ensures trust and security in the loyalty program.

(If Web3 for loyalty is something that grabs your attention, I recommend you check our editions #10 and #23)

“I don’t know, Diego... Don’t see many brands really exploring Web3…”

If you need more (recent) examples, here are some of the ones we discussed in past editions:

• Nike (Edition #23)

• Lacoste (Edition #24)

• Louis Vuitton (Edition #25)

• Lufthansa (Edition #34)

• IBM (Edition #36)

Not to mention Visa’s Web3 Solution (Edition #27) which can impact different brands and industries.

So YES, big brands are exploring, investing, learning, and building in the Web3 space.
Not all projects will be a huge success (but that’s normal, right?) but the space is growing.

“Brands amplify identities digitally while fostering diverse customer interactions”

100% this!

Web3 is an AMAZING way for brands to amplify their presence and over diverse customer interactions.

As I said in many past editions, it’s not about “destroying” strategies that work, but rather enhancing them, while preparing the brand for what’s coming (even more digital interactions, new generations of consumers, etc.).

“Active participation”

Spot on!

That’s what Web3 is about. Brands are starting to understand that users/consumers/clients can also be co-creators and help them strengthen their products and ideas.

Correct, Ouseke!

Brands have so many interesting ways to explore Web3… And you listed some really cool ones.

As we saw in the Hugo Boss example, it’s about time for brands to take the engagement and community-building game to the next level.

We are just getting started!

Despite all the turbulence and bumps in the road, big brands entering (or re-entering) the Web3 space is just natural.

This dynamic environment offers immense potential for improving core areas like consumer engagement, branded experiences, and transparency (just to name a few).

The essence of Web3, with its collaborative and user-centric approach, aligns perfectly with the evolving needs of modern businesses and their customers.

From my perspective, one of the most compelling reasons for brands to dive into Web3 is the opportunity to create more personalized and engaging consumer experiences. By leveraging blockchain, AI, collectibles, and other related tech, brands can offer unique digital assets and experiences that resonate deeply with their audience.

Moreover, the transparency and security provided by blockchain technology are invaluable. Consumers today demand greater accountability and trust from the brands they support.
Web3's very nature ensures that transactions and interactions are transparent and secure, enhancing consumer trust and fostering long-term relationships.

(and here I mean “long-term” in real-world metrics 😅)

Looking ahead, it's clear that the integration of Web3 into brand strategies is already past the “hype” cycle.

But what do you think? Is the space mature enough?
Do you see more global brands stepping into Web3 soon?

See you soon.

#LFGrow
Diego Borgo