Did you know? One of the most influential dictionaries coined “NFT” as its Word of the Year.

It’s one of the hottest topics that many entrepreneurs and marketers seem to feel FOMO about not learning about.

And it’s for good reason. Here’s why:

The first half of 2021 saw NFT sales surge to $2.5 billion

2021 saw a $40 billion market for NFTs

In Q3/2021, NFT trading volume increased by 704% reaching $10.67 billion

As our society becomes more accustomed to NFTs in everyday life, the use and adoption rate of NFTs has rapidly increased in recent years–and merchants must continue to innovate or risk falling behind.

And if you’re feeling lost about how to get started, we got you.

In this blog post, we’ll explore potential use cases, which you can get inspiration from.

Plus, you’ll get an NFT guide in using these tokens to market your eCommerce business. So if you’re curious about this new investment opportunity, read on!

NFTs, the future of retail merchants

When NFT madness began in 2021, merchants realized that they had nothing to lose by trying out the technology on their own.

Big names in the retail industry dipped their toes in the water– and remained to bask in all its glory.

Some of these big retailers were: Mcdonald’s, Samsung, Pepsi, Warner Bros, NBA, Under Armour and Gucci, among others. This section can go on for hours.

It was also the year that The Merge by Pak sold for $91.8 million, the most expensive piece ever sold. The term “NFT” won’t be coined Word of the Year without reason.

It’s understandable that the concept of NFT can be daunting, but take a look at it at this angle: NFT beginners can learn from the big brands’ NFT strategies.

As we evaluate how the big dogs approached NFT, we’ll teach you how to apply it on your own business.

5 NFT strategies: a cheatsheet for retailers

If you are looking for proven NFT strategy for merchants, this NFT for beginners cheatsheet will help you get the ball rolling. We’ve broken down the strategies into business models that you and I already know of.

1.Partnerships: Adidas & Prada

The pairing of German superbrand Adidas and Italian luxury brand Prada shows the increasing prominence of high-fashion merchants on the NFT landscape.

Their goal is to engage fans into buying from their high-end athletic collection wear.

adidas for Prada re-source | A co-created digital art project with Zach Lieberman

In this open-Metaverse NFT project, fashion retail giants invited audiences to submit anonymous photographs. In an effort to generate a single mass-patchwork NFT, Zach Lieberman, a distinguished digital artist, designed a mass-patchwork NFT compiled from 3,000 art pieces donated by the community.

Seems like the participants had fun.

Why does this strategy work?

A co-branding strategy is a good way for brands to collaborate and get their name out there.

As a result of the convergence between their products, they both gain valuable advertising opportunities and profit. As for their NFT alliance, community collaboration, community accessibility, and community ownership distinguish the two giant fashion retailers’ NFT project from the others.

2. Involve your core product: Budweiser

Imagine a world where your beer is more than just something to enjoy, but instead an immersive experience that you can’t get anywhere else.

This is the idea behind Budweiser’s new line of NFTs.This top American beer brand is getting in on the crypto craze.

Budweiser announced their first ever Non-Fungible Token (NFT) last November 2021, and it’s already a hit with avid drinkers.

The Budverse Cans Heritage Edition represents a unique digital asset based on designs from the beer company’s history.

A total of 1,900 Core Heritage Tokens priced at $499 each and 36 gold tokens priced at $999 each are included in the first NFT collection which were sold out in an hour.

Budweiser involving their core product is a smart move as it’s a “new frontier where your NFT can unlock exclusive benefits, rewards & much more.”

Why does this strategy work?

The new Budweiser initiative is a savvy choice, as it reinvents the brand and offers exclusive benefits to loyal customers.

The Budverse is unlocked through the NFT, which acts as an entry key, which in return will make avid drinkers look forward to purchasing their product.

To heat it up, you can even partner with an influencer to expand your product’s reach. In Budweiser’s case, it’s NBA legendary Dwyane Wade.

3. Tap a community: Lonely Listeners Club

A Canadian NFT & Blockchain Services company, Lonely Listeners Club launches and supports independent artists with the goal of disrupting the music industry.

The LLC DAO (Lonely Listeners Club – Decentralized Autonomous Organization) was formed by LLC NFT holders. It funds itself through 30% royalties from secondary markets, and the funds collected serve as a major tool in the community’s efforts to invest across all of their projects.

It allows easy investment into different ventures via approved proposals & voting systems by the members.

The members of the community believe that in order for NFTs to thrive, it needs to disrupt the traditional business model.This goal can be achieved by tokenizing and democratizing record deals. They also offer lifelong access to concerts, merch, VIP access, etc. and music ownership.

Why does this strategy work?

Tapping into a thriving community is one of the best ways to go about it. Plus, communities are HUGE in the NFT space.

In the NFT for beginners’ handy guide, this one is the most doable. NFTs are all about connecting with people, so it only makes sense that you would want your token in circulation as well. The more supported and active the holders of these tokens are, the better chance they have at success for themselves and their future endeavors.

4. Tie NFTs with physical product: Nike

Nike has been looking for innovative ways to break into the virtual world. Their purchase of RTFKT Studios, a company that creates metaverse sneakers and NFTs.

Doing so allowed them to create next-generation NFT collectibles that will be a perfect complement to this new marketplace. It only took six minutes before 600 NFT sneaker pairs were sold at $3.1 million each.

And of course, Nike digital’s sneakers are also available in physical versions. This means you can hybridize virtual shoes to create original designs to wear them around in the real world. Woah, right?

Why does this strategy work?

The popularity of virtual goods is growing rapidly. Non-fungible tokens that are being created and sold by retail companies create buzz and garner attention for their brands. And with advancements in technology making things easier all of sudden — you can find buyers for your NFTs anywhere, day or night.

5. Connect it with your product usage

Technology and innovation have always been Starbucks’ strong points.

Starbucks’ goal was never simply to make a better coffee house. Their aim was to create an experience that engaged customers at scale through innovative ideas like mobile ordering, mobile payments, and loyalty rewards.

Recently, interim CEO Howard Schultz had an announcement about their Web3 project, stating that, “We believe this new digital Web3-enabled initiative will allow us to build on the current Starbucks Rewards engagement model with its powerful spend-to-earn Stars approach while also introducing new methods of emotionally engaging customers, expanding our digital third place community, and offering a broader set of rewards.“

It was also revealed that NFTs are now part of the Starbucks Rewards program, meaning customers may earn rewards for purchasing them or, conversely, may receive them as a benefit.

In addition to serving as digital collectibles, Starbucks NFTs would also provide exclusive content and other perks to their owners.

Why does this strategy work?

By introducing crypto collectibles, your business will took a step forward among other competitors. As well as offering loyalty programs for customers, this is also the start for Web3’s ecosystem.

NFT is no longer a hype — it’s the next marketing frontier.

The big brands are cashing on it. And soon, the smaller brands will follow.

Take the first step towards NFT Strategy for Merchants

So there you have it, the NFT for beginners cheatsheet.

NFT is definitely a word on the rise, with some impressive successes to back it up. If you’re looking for a way to jumpstart your own cryptocurrency marketing efforts, look no further than Rectangle.ai and our suite of comprehensive NFT marketing tools.

If you need a little help getting started, Rectangle.ai is here to provide support so that you can create successful NFT campaigns and NFT strategy for merchants in no time.

Go ahead and install Rectangle.ai and access expert-led NFT marketing tools today.

No need to understand blockchains, tokengating, or NFT minting. Rectangle.ai will do all the work for you.

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