How shopping centre owners and retailers can prepare for Web3 and coming transformation of retail
- As more shopping centre owners and retailers hop on the bandwagon, it is vital to carefully plan out Web3 marketing campaigns to succeed
- Brands should focus on aligning with their unique identities and remaining consistent with their own guidelines
By embracing Web3, brands can tap into the all-important Gen Z and Millennial segments and reach their targeted audiences more effectively. By using NFTs, meanwhile, they can create a more strategic customer relationship management (CRM) programme and enhance customers’ experience and relationship with the brand.
As we move towards a cookie-less internet, in which data becomes more scarce, brands’ ability to identify and understand their targeted consumer segments will be disrupted. NFTs provide an excellent opportunity to understand and expand on their owners’ behaviour and preferences. Think of them as cookies for Web3.
Now, as more shopping centre owners and retailers hop on the bandwagon, it is vital to carefully plan out your Web3 marketing campaign to succeed. First and foremost is the need to partner with professional and reliable blockchain or Web3 solutions providers. To transition smoothly to Web3 and unlock its unlimited possibilities, brands should work with firms capable of providing total solutions, from the design and development of metaverses or NFTs to the launch of token ecosystems, or even their own blockchain.
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They are also advised to enhance their Web3 and smart contract design, focus on security to mitigate risk, set up and integrate different fiat payment methods to enhance ease of use and reach a wide audience base. Otherwise, brands can fall victim to security or technological issues, leading to a loss in revenue or even PR crises.
One of the biggest challenges facing shopping centre owners and retailers is how not to be drowned out by the content tsunami in Web3. When brainstorming Web3 campaigns, brands should focus on aligning with their unique identities and remaining consistent with their own guidelines.
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For example, K11 Musea launched Hong Kong’s first and most diverse NFT art exhibition, Metavision, which captured the eyeballs of Gen Z and Millennial consumers while also encapsulating and amplifying its brand positioning as a “cultural-retail landmark”. The showcase had the support of HSBC as title sponsor, and it opened the door to additional revenue streams by demonstrating the possibility of transforming the offline retail space into a culture and technology incubator.
This kind of community building and management is crucial in the Web3 world as people crave the feeling of belonging. Shopping centre owners and retailers should, therefore, focus on creating a space in which their customers can stay engaged. This digital community can be coupled with offline events to forge an even deeper connection. A real-life example will be Tuen Mun Town Plaza’s NFT-enabled membership programme, which aims to establish an NFT beauty community and boost brand loyalty through its CRM programmes.
Brands can also transform active and loyal customers in their communities into ambassadors. With their social presence and authentic sharing, these KOCs (key opinion consumers) can help maximise brand exposure, raise awareness and increase reach. Retailers can also provide more personalised and unique NFT pieces with customised utilities based on consumer profiles. This could build brand stickiness and promote the exclusivity of the brand’s products and its spin-off communities.
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To ensure the highest relevance and the broadest audience reach, brands should combine their Web2 and Web3 marketing strategies. For example, leveraging KOL (key opinion leader) marketing and offline retail spaces in shopping centres to promote their campaigns through omni channels. Hardware such as augmented reality devices can be used to create an immersive in-store experience. With so many options, it is easy to differentiate yourself in the metaverse.
Although Web3 is still in its early stages, digital reality is set to transform every aspect of our lives. To prepare, retailers should gradually build up their own first-party data and customer profiles and, most importantly, work on deepening the emotional relationship with their customers. The road to success in Web3 may be full of challenges, but like many other things, there is always a process of trial and error before you can reap the benefits.
David Lee is the CFO of EternityX, an AI-empowered open-to-connect marketing technology platform that connects regional and international brands with the Chinese market
