A 10,000-word research report on traditional brands' Web3 practices: Exploring long-term value differentiation in Web3 – a dead end or an opportunity? A panoramic analysis of its development background, typical cases, business models, compliance paths, and future prospects.
In December 2024, two events occurred almost simultaneously: Nike announced it would close its virtual sneaker studio RTFKT in January 2025; Adidas officially released its ALTS digital avatar series, three years in the making. The two world's largest sportswear brands made diametrically opposed choices at the same time.
Similar divergences have spread across the industry. Over the past four years, almost all leading consumer brands have experimented with Web3: Starbucks launched the NFT membership program Odyssey, which closed after about 22 months; Louis Vuitton released the VIA Treasure Trunk, a digital collectible priced at €39,000, which continues to operate and expand its product line; Gucci opened a virtual store at Roblox; H&M experimented with a metaverse showroom; and LVMH even used a metaverse approach to present content at its 2023 shareholders' meeting.
Both are leading brands, both have made high investments, and both claim to be optimistic about the long-term value of Web3—why are the outcomes so different?
This report attempts to answer the questions above. We analyzed four landmark cases (Nike RTFKT, Starbucks Odyssey, Louis Vuitton VIA, and Adidas ALTS) not to simply label them as "successful" or "failed," but to understand: What problem did these projects actually solve? What was their design logic? Which assumptions were proven correct, and which were proven wrong?
This report will evaluate brands’ potential strategies in the Web3 scenario based on four dimensions: technology, compliance, user acceptance, and business returns—including which models are feasible, under what conditions they are feasible, and which solutions do not yet have a basis for implementation.
It should be noted that this report has clear limitations. The information we can obtain mainly comes from public reports and corporate disclosures, and we cannot access the internal decision-making processes and financial data of the projects. For some cases (such as LV and VIA), there is no publicly available data on user scale and repurchase rate; we can only infer from product iteration cycles and media reports. However, we will clearly indicate in the report what is fact and what is speculation, allowing readers to judge the reliability of the information.
A comparison chart of the outcomes of four cases, created by Clare Yang, a researcher at Web3caff Research.
Author : Clare Yang , Researcher at Web3Caff Research
Cover: Photo by Unsplash+
Word count: 12,700+ words in total
Table of contents
What exactly do brands want to solve by using Web3?
A question that needs to be answered first
Three business pain points
Different application scenarios
Four cases, three outcomes
Case Overview
Nike RTFKT: Lessons Learned About "Collaboration"
Basic facts
Reasons for shutdown
Noteworthy details
Starbucks Odyssey: How “Complexity” Kills a Good Idea
Basic facts
Analysis of reasons for shutdown
Case Insights
Louis Vuitton VIA: How does high-end positioning define the rules of the game?
Basic facts
Reasons for continued operation
Boundaries of the pattern's applicability
Adidas ALTS: Another Path to Long-Termism
Basic facts
Adidas's strategy choices
Option 1: Build your own team instead of acquiring one
Option 2: Long-cycle development
Holder's rights
Current Status and Future Outlook
What can we learn from these cases?
The difference between gimmick-driven growth and infrastructure-driven growth
Complexity is the enemy of user experience.
The project's lifecycle is determined by its relevance to the core business.
Customer positioning determines business model selection
Summary of patterns
Compliance Path of the Digital Collectibles Market
Policy framework
Practices in the Digital Collectibles Market
Feasible directions
Technology Selection
Directions requiring careful evaluation
Considerations for the present
Define the core issues
Integrate with existing systems
Lower the barrier to user participation
Evaluate input and output
In summary
Key Points Structure Diagram
Reference source
What exactly do brands want to solve by using Web3?
A question that needs to be answered first
Before discussing specific cases, we need to return to a question: Why should traditional brands engage with Web3?
In the wave of enthusiasm in 2021, many brands entered the market because "everyone else is doing it" or "it seems innovative." This lack of clear motivation sowed the seeds of failure—without figuring out what problem to solve, any technological attempt becomes an expensive public relations campaign.
According to Statista , global sales of NFTs in the art and collectibles category reached approximately $17.8 billion in 2022; by 2023, this figure had fallen to approximately $7.5 billion, a drop of over 57%. CoinGecko's annual report shows that total NFT transaction volume in 2023 decreased by approximately 63% compared to 2022. The decline in market enthusiasm is an objective fact, but attributing all project failures to a "cooling market" is clearly an oversimplification.
The real questions to ask are: During periods of market prosperity, did the relevant projects truly generate sustainable value? If they did, why were they unable to continue operating after the hype died down? If they failed to generate value, how should their legitimacy be defined?
Three business pain points
Putting aside the motivation of "chasing trends," there are indeed some real business pain points that will make some brands seriously consider the value of Web3 tools.
First, user assets are locked by the platform.
For example, a consumer may have accumulated a large number of points and purchase records by shopping at a certain brand for five years, but the data is entirely stored in the brand's database or the e-commerce platform's database. The user cannot prove that they are a "high-value customer," and the brand cannot continue to identify them after they change their phone number or move to a different city.
This problem is particularly pronounced in markets with highly developed multi-platform e-commerce and content ecosystems. Brands' user data is often scattered across different channels—whether e-commerce platforms, social media, offline stores, or proprietary applications—lacking a unified identity and behavioral record across these systems. As a result, the same consumer might be considered a high-value member on one platform but identified as a completely new user on another. Brands aspire to achieve omnichannel operations and lifecycle management, but data fragmentation makes unified insights and continuous activation difficult.
On-chain identity can theoretically solve the above problems: users' consumption behavior becomes verifiable and portable credentials, independent of any single platform. However, there is still a long way to go between "theoretically" and "in practice".
The problem with traditional points systems lies in their lack of perceived value. For example, a user might hold 5,000 points but often cannot determine their corresponding benefits or consider them as an "asset" with lasting value. Furthermore, the expiration date and periodic clearing of points further diminishes users' incentive to accumulate them—since they will eventually expire, long-term accumulation becomes meaningless.
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Institutional-level closed-door communication meetings (once per quarter, to obtain first-hand information and resources on industry trends).
Exclusive community for institutions (collaborating with Web3 executives, institutions, funds, etc. for collaborative research and improvement)
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Database product CSV download (available upon request in "full" format, 3 times/year)
Web3 thesaurus (supports floating definitions for terms within reports)
Daily internal news push
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Infographic push notifications (hot data, featured images)
Research Reports section (unlocks all project, narrative, and sector-specific research reports, updated weekly; reports cover 80+ Web3 sectors; user reviews say "I wish I'd discovered this sooner")
Our market pulse analysis and financing project decryption columns (updated 2-4 times per week, easily capturing market hotspots and popular financing projects)
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Strengthen research frequency and response capabilities
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Exclusive community for institutions (collaborating with Web3 executives, institutions, funds, etc. for collaborative research and improvement)
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Database product CSV download (available upon request in "partial" format, once per year)
Web3 thesaurus (supports floating definitions for terms within reports)
Daily internal news push
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Institutional Professional Edition Annual Membership
Customized research + analyst support
$14300
Multiple accounts for enterprises (3 seats)
Research Reports section (unlocks all project, narrative, and sector-specific research reports, updated weekly; reports cover 80+ Web3 sectors; user reviews say "I wish I'd discovered this sooner")
Our market pulse analysis and financing project decryption columns (updated 2-4 times per week, easily capturing market hotspots and popular financing projects)
Web3 Project Financing Database
Web3 Event Tracking Database
Member Weekly Report (Effective Absorption of Weekly Highlights)
Unlock the history of this member's access to certain sections.
Customized research report (1 copy, topic selection requires review, let a reputable research team in the industry conduct specialized research for you and produce results)
Access to research reports in advance (unlimited access; upon request, reports can be unlocked ahead of the market after the official release of research report previews).
One-on-one consultation with an analyst (1 hour, topic subject to review)
Analyst-sponsored Q&A service (8 questions, topics subject to review)
Browse the analyst Q&A summary section (a curated selection of high-value, insightful content).
Institutional-level closed-door communication meetings (once per quarter, to obtain first-hand information and resources on industry trends).
Exclusive community for institutions (for collaborative research and improvement with Web3 executives, institutions, funds, etc.)
Downloadable PDF report
Database product CSV download (available upon request for "full" data, 2 times/year)
Web3 thesaurus (supports floating definitions for terms within reports)
Daily internal news push
Daily Featured Push
Infographic push notifications (hot data, featured images)
Research Reports section (unlocks all project, narrative, and sector-specific research reports, updated weekly; reports cover 80+ Web3 sectors; user reviews say "I wish I'd discovered this sooner")
Our market pulse analysis and financing project decryption columns (updated 2-4 times per week, easily capturing market hotspots and popular financing projects)
Web3 Project Financing Database
Web3 Event Tracking Database
Member Weekly Report (Effective Absorption of Weekly Highlights)
Unlock the history of this member's access to certain content.
Customized research report (1 copy, topic selection requires review, let a reputable research team in the industry conduct specialized research for you and produce results)
Access to research reports in advance (unlimited access; upon request, reports can be unlocked ahead of the market after the official release of research report previews).
One-on-one consultation with an analyst (1 hour, topic subject to review)
Analyst-exclusive Q&A service (12 questions, topics subject to review)
Browse the analyst Q&A summary section (a curated selection of high-value, insightful content).
Institutional-level closed-door communication meetings (once per quarter, to obtain first-hand information and resources on industry trends).
Exclusive community for institutions (collaborating with Web3 executives, institutions, funds, etc. for collaborative research and improvement)
Downloadable PDF report
Database product CSV download (available upon request in "full" format, 3 times/year)
Web3 thesaurus (supports floating definitions for terms within reports)
Daily internal news push
Daily Featured Push
Infographic push notifications (hot data, featured images)
Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
