"Hey I have a question for you."
September 27, 2023
Louis Vuitton to Budweiser: 6 Big Brands Breaking into NFTs
"Hey, did you just spend $4,000 on some digital toilet paper?"
"Yes."
This exchange is not a joke. It's a hypothetical conversation that's probably taking place somewhere in the world. The funny part is that the hypothetical owner of this digital toilet paper is making what many consider a savvy investment despite how crazy it may sound.
That's because as NFTs continue to soar in popularity, major brands – like Charmin and their non-fungible toilet paper – are jumping into the Metaverse to create digital versions of their real-world products.
It's not just a few companies doing this; all types of businesses, from soda brands to high-end fashion houses, are creating non-fungible tokens.
Many probably are scratching their heads thinking, "why would any brand do this?"
This is a fair question, and the truth is that there's a continuously growing list of reasons behind brands making a move into the NFT space.
A few reasons why brands are loving NFTs
It's not much of a secret anymore that the future is online. People are spending more hours connected to their digital realities and using their hard-earned money to pay for necessities they'll need in the Metaverse.
Brands have taken notice of this trend, and they smell an opportunity
The rise of NFTs presents a prime marketing opportunity and the next step towards making even deeper connections with new communities. For most companies that want to continue to evolve and thrive, jumping into NFTs is a no-brainer.
So while Cryptopunks, Bored Apes, and other PFP NFTs are breaking banks and popping tags, major companies are taking a more modestly priced approach to their creative spins on NFTs. This should make consumers giddy with excitement because this modern reimagining of marketing and branding is taking on fascinating and fun forms.
Here are some of the more well-known examples of major companies dipping their toes into non-fungible tokens.
1. Charmin and toilet paper tokens
Charmin is usually known for its cute ads featuring a cheeky family of bears in need of a better brand of TP. Their marketing campaigns are adorable, but their first round of NFTs proved that the creative heads at Charmin are also pretty dang clever.
Charmin dropped a limited number of NFTP, otherwise known as "non-fungible toilet paper".
NFT(P) by Charmin
If you're wondering, "will we need TP in the Metaverse?", the answer is probably not. Thankfully, Charmin didn't release these limited NFTs for futuristic bathroom hygiene. Instead, the proceeds of these collectibles images of decorative toilet tissue went to the charitable foundation Direct Relief.
The good cause behind these NFTs highlights another layer of intelligence behind Charmin's NFT strategy. What could have been a shameless cash grab turned out to be a thoughtful marketing campaign that not only benefited those in need but also highlights the modern thinking of a brand looking to stay relevant.
2. McDonald's McNFT
Finally, a McDonald's order that doesn't get your fingers greasy or make your belly bulge! McDonald's busted onto the NFT scene with some calorie-free NFT trading cards featuring their forever popular McRibs.
Fans of McDonald's are probably familiar with the unique ways McDonald's connects with its community. Things like Happy Meals and Monopoly are classics in McDonald's marketing playbook, but their McNFTs were a Metaverse manoeuvre that played on both the current hype of non-fungible tokens and the historical fandom of one of their most popular sandwiches.
The McNFTs, however, wasn't sold on one of the traditional marketplaces. Instead, the international burger chain selected a few lucky winners from a pool of 95,000 who retweeted the image of the stylized McRib.
What was the goal of the McDonald's McNFT? For one, McDonald's is always investing in marketing strategies that reach new communities. Another reason was to create a modern collectible of classic McDonald's nostalgia.
For fans who missed out on the opportunity to snag one of these tasty tokens, don't stress! It wouldn't be surprising to see more of these drops from the fast-food chain.
3. Louis Vuitton Blockchain
In many ways, expensive handbags and designer pieces are kind of like non-fungible tokens: they're often expensive, they're rare, and people will buy fakes to parade around as the real deal.
So why would a fashion house like LVMH want to dive into another form of luxury creation? Again there are multiple reasons here, but LVMH used NFTs in a super unique way.
"Louis: The Game" by Beeple and Louis Vuitton
This past August, Louis Vuitton teamed up with legendary digital artist Beeple to create a game app in celebration of the 200th anniversary the founder Louis Vuitton. The game follows Vivienne, Louis Vuitton's mascot, who is on a NFT treasure hunt through the magical city of Paris. While players collect 30 tokens scattered throughout the virtual landscape, this game also offers a chance to learn about the history of the brand through the wild visual lens of Beeple.
But it doesn't stop there! Parent company LVMH uses NFTs to verify the authenticity of the products. More specifically, Louis Vuitton – which falls under the LVMH umbrella – paired up with Microsoft to create their own blockchain. This novel blockchain proves to owners that their luxury items are the real deal and not some knockoff sold on a street corner.
This was a genius example of using the digital ledgers of NFTs to validate physical goods, and it's a method that's likely to be replicated by other high-end brands.
4. Budweiser Heritage Collection
When Budweiser drops the latest NFT terminology with Pepsi over Twitter, it's a clear sign that things are going crypto in the beverage industry. In getting with the times of the Metaverse, the beer conglomerate teamed up with VaynerNFT to create The Heritage Can NFT Collection – a set of 1,936 unique digital tokens.
36 NFT heritage beer cans by Budweiser
Like other companies exploring the realms of NFTs, Budweiser's collection is a move to engage with consumers in a forward-thinking way. As Spencer Gordon, Vice President of Digital + draftLine at Anheuser-Busch, puts it, “The launch of this NFT Collection is yet another example of our innovative and consumer-first approach to further strengthen our iconic brands.”
Budweiser's strategy shows that the head honchos of Anheuser-Busch know there's more to the brand than just getting buzzed on a cold can of brew. With NFTs, the company now has a new avenue for creating modern and meaningful experiences.
5. NBA Top Shots
Owning a verified piece of basketball history is a real possibility for the ultimate basketball fans out there, thanks to NBA Top Shots. Built on the Flow Blockchain, the NBA offers consumers the chance to buy NFTs of plays and highlights known as "Moments."
Officially licensed NBA & WNBA NFTs
Moments are sold in both packs and individually, and in true NFT fashion, some Moments are rarer than others. To differentiate the value of Moments, NBA Top Shots breaks these collectibles up into tiers: Common Tier, Fandom Tier, Rare Tier, and Legendary Tier.
By opting into NFTs and the blockchain, the NBA jumped ahead of other professional sports leagues in terms of leveraging technology to connect with fans. It's likely just a matter of time before the rest of the leagues take a crack at non-fungible tokens.
6. Nike's digital footprint
Nike knows a thing or two about hype and rarity, which is why the acquisition of RTFKT makes sense for the world-renowned shoe giant. RTFKT – a creative-led organization born in 2020 – creates digital sneakers and collectibles that focus on culture and gaming. Under the Nike banner, RTFKT will help accelerate Nike's goal of delivering NFTs and next-generation collectibles to creators.
President and CEO of Nike Inc., John Donahoe, said, "Our plan is to invest in the RTFKT brand, serve and grow their innovative and creative community and extend Nike's digital footprint and capabilities."
With RTFKTS's ability to influence online communities, and Nike's position as an iconic and globally recognized brand, there's sure to be plenty of news and exclusive drops coming from this new partnership.
A marketing trend or the future of branding?
No one can say for sure, but by the looks of things, NFTs are here to stay. With the likelihood that NFTs will stick around, the chances are that more brands will see the enormous potential in creating NFTs.
Only time will tell how brands will create and use NFTs to their advantage in the future. There are an enormous amount of possibilities, and whether brands pursue financial gains or community connections with their digital assets is anyone's guess.
There's a lot of exciting uncertainty, which makes the potential of this space even more intriguing.
Did we miss any name brands that are breaking in the NFT space? Tag @buenonft so we can see who is making frens!
