Great article and the data components are spot on. Thank you for writing this. The potential of phygital for web2 consumer product companies (durable products) is incredible. Nike/RTFKT is the leader modeling all this for us, and is killing it with creativity and application of not just web3 but now the phygital component. I don't know what they paid for RTFKT but just looking at P&L metrics for web3 efforts and I think Nike is way in the black on this with serious profitability, even though the revenue is not yet material.
Agree! I know there are some critiques (which are fair and needed IMO) on the value extraction of RTFKT/Nike considering how profitable these efforts are. But at the same time Nike is a public company (profit is the goal) and they are creating that model everyone else can emulate.
And over time I hope RTFKT will reward its early supporters with giving back benefits that will be primarily value-add and no additional capital needed to support as the larger ecosystem that they and Nike build matures :)
TL;DR: The intersection between physical and digital is becoming a reality through RTFKT Projects, with great focus on the Ownership Experience, Multi-layer Token Gating, and Phygital (Physical Digital) Authentication.
Thanks Justin! After writing the piece as a whole, I feel pretty strongly about all those predictions even on an industry level, even if it's not Nike.
Prediction 1: Scarcity x Customization (cultural trend of self-expression being is self-evident)
Prediction 2: Value-capture post-sale (Happening for creators with NFTs, Pearson with textbooks, next will be retail. Companies like RealReal, StockX, GOAT, etc. will need to adapt quickly for Web3, or the largest brands will create their own secondary marketplaces)
Prediction 3: On-chain + Off-chain data play (I'm less familiar with brick and mortar retail, but I imagine this would be a Golden Goose for that industry)
Great article and the data components are spot on. Thank you for writing this. The potential of phygital for web2 consumer product companies (durable products) is incredible. Nike/RTFKT is the leader modeling all this for us, and is killing it with creativity and application of not just web3 but now the phygital component. I don't know what they paid for RTFKT but just looking at P&L metrics for web3 efforts and I think Nike is way in the black on this with serious profitability, even though the revenue is not yet material.
Agree! I know there are some critiques (which are fair and needed IMO) on the value extraction of RTFKT/Nike considering how profitable these efforts are. But at the same time Nike is a public company (profit is the goal) and they are creating that model everyone else can emulate.
And over time I hope RTFKT will reward its early supporters with giving back benefits that will be primarily value-add and no additional capital needed to support as the larger ecosystem that they and Nike build matures :)
TL;DR: The intersection between physical and digital is becoming a reality through RTFKT Projects, with great focus on the Ownership Experience, Multi-layer Token Gating, and Phygital (Physical Digital) Authentication.
LOVE IT
😉
The video of all the Supreme suitcases almost made me laugh out loud.
But more than that - love your prediction of a Nike Authentication Platform and the data play that is to follow. Thanks.
Thanks Justin! After writing the piece as a whole, I feel pretty strongly about all those predictions even on an industry level, even if it's not Nike.
Prediction 1: Scarcity x Customization (cultural trend of self-expression being is self-evident)
Prediction 2: Value-capture post-sale (Happening for creators with NFTs, Pearson with textbooks, next will be retail. Companies like RealReal, StockX, GOAT, etc. will need to adapt quickly for Web3, or the largest brands will create their own secondary marketplaces)
Prediction 3: On-chain + Off-chain data play (I'm less familiar with brick and mortar retail, but I imagine this would be a Golden Goose for that industry)