Fashion, Beauty Brands Using Web3 to Boost Customer Engagement

Brands mainly depended on Web2 channels such as social media to connect with customers before Web3 became known. Recent data shows that more than 75% of businesses still use social media to reach consumers. However, as the maturation and adoption of new technologies such as artificial intelligence (AI) and blockchain increases, strategies brands use to engage consumers continue to evolve.

In a recent interview, KIKI World’s cofounder, Jana Bobosikova, stated that new technologies ensured that online products weren’t consumed passively. KIKI World, a community commerce company, is focused on empowering passionate consumers and was founded to reward communities and consumers.

To make this a reality, the company uses blockchain infrastructure to connect its products with users who may be interested in them. This network, Bobosikova explained, allowed brands, creators and even curious persons to create campaigns that rewarded their audience’s participation.

In 2023, the company launched some community-created products, including the Pretty Nail Graffiti in Pearl. Since then, it has launched another four product lines, which include a 3D Face and Body Paint, called Play Paint Marker, and the SDK Skin Development Kit.

These recently launched products were all created via voting mechanisms and community input, rewarding any who took part in the above process with digital collectibles (KIKI points). This isn’t the only solution allowing companies to better connect with their consumers either. Near-field communication (NFC)-enabled fashion is affording companies a direct communication channel and touch point for customers.

A good example of NFC-enabled use is its use by CreatedBy, a connected goods ecosystem. The platform’s founder, Tom Wallace, stated that the company was connecting digital tokenized twins to physical goods. Wallace explained that placing tokenized twins on a blockchain network using the company’s NFC tags allowed the company to share the journey and story of every product and, in turn, increased transparency around practices such as sourcing and production.

Wallace believes digital twins on blockchain networks will solve a big problem for brands by addressing the consumer need for supply chain and sustainable sourcing transparency while still engaging with them.

While some platforms are enhancing their consumer-brand connections using Web3, it may take a while before these solutions gain mainstream acceptance. A huge barrier to adoption is education and the stigma linked to anything related to cryptocurrencies. Despite this, it is expected that brands will continue to find ways to include Web3 in consumer engagement, especially when NFC-enabled fashion learns to better communicate with artificial intelligence.

Away from the fashion and beauty industry, Web3 technologies are being to put great use in the financial sector by companies such as Horizon Fintex in ways that are expanding the realms of how capital is mobilized and the ways in which securities trading can be done.

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