Web3 may not sound like a buzzword to the general public, and you've probably never even heard of it! But the web3 trend is fast approaching, so it's worth understanding what it is and why e-tailers are affected by this new web evolution.
The web3 is defined around 3 main axes:
Thanks to web3, companies no longer have direct access to individual user data. Now users surf on their own device and on their own connection. No data can be disseminated without the consent of that user.
Users' data is hosted on their own computer and not by a single server. This means that no one giant controls or regulates the internet. All users will now have control over their personal data and privacy. Indeed, unlike web2, web3 is entrusted to a network of only users who operate according to rules.
- Data control
Users have power over their personal data. Thanks to the web3, they have the ability to decide who can see their data and on which platforms or applications it is distributed. This data is valuable to the marketing department. The web3 thus contributes to the increase in acquisition costs for companies that want to implement relevant strategies using their data.
This next internet revolution is set to revolutionise fashion, beauty and retail in general. Here's what this new web promises for e-commerce in 2023 and beyond, but first things first: are the web and the internet the same thing?
The web, the internet: what's the difference?
Unlike the web, the internet is a platform for exchanging information between multiple devices. The web, on the other hand, is a means of viewing pages from a site from a browser on the device of your choice. Web3 thus revisits the internet, succeeding web1 and web2.
Remember web 1: it was a simple information portal where you could browse through different pages. In the 2000s, web2 appeared and with it, platforms and social networks were born, which allowed us to create content. All the exchanges between people from all over the world were centralised on the big platforms such as Google, Apple, Facebook, Amazon and Microsoft, the GAFAMs.
Web3 is more secure and faster than web2, allowing all businesses to control all their data without the need for the tech giants.
But beyond that, web3 is totally revolutionising the way information is stored and transmitted.
What is Web3 ?
The web3 refers to all decentralised platforms operating on public blockchains, i.e. data storage areas sometimes supported by NFTs.
According to the CNIL, blockchain is :
"a technology for storing and transmitting information that is transparent, secure and operates without a central control body. It constitutes a database that contains the history of all exchanges made between its users since its creation, secure and distributed: it is shared by its various users, without intermediaries, which allows everyone to verify the validity of the chain."
NFTs certify the uniqueness of a digital asset: they are Non Fungible Tokens, i.e. they cannot be exchanged for goods of the same value. Clearly, an NFT is unique and the object to which it refers is also unique. In addition to certifying the uniqueness of the object, the NFT also makes it possible to trace it throughout its life as an object that can be transferred from person to person. NFTs are therefore useful in the art market, in particular for these reasons, but also in the video game market, the film industry and even in politics.
These new references for value attribution and traceability qualify the web3.
How does web3 impact e-commerce?
For e-commerce, web3 marks a revolution, both for brands and consumers. As web3 is more secure, it will allow e-retailers to reduce the risk of fraud and to secure online transactions and exchanges through blockchain technology.
The web3 will also allow retailers to offer a new experience to their customers: the opportunities in the metaverse are multiple (virtual shops, immersive experiences during an event...), and will allow the brand to enlarge its audience, acquire new customers and reinforce loyalty.
Consumers will have the chance to participate in spectacular events and acquire unique products.
This new way of doing business will help to reduce the bounce rate on the website and reduce shopping cart abandonment.
3 major fashion brands that have reinvented themselves through the web3
Lacoste at the heart of the metaverse
The famous French brand Lacoste has made a collaboration with the game Minecraft. This association has allowed its video game enthusiasts to be immersed in a brand new experience. In a wardrobe for women, men and children, the ready-to-wear set and accessories are covered with Minecraft graphics and landscapes. The products have a pixelated Lacoste logo like in the Minecraft universe. This idea offered a unique moment to gamers in a playful space.
Le Printemps: the new Live Shopping and NFT stores
Printemps' objective was to create a new identity and brand repositioning to bring more customers into the shop. The multi-brand retailer began by implementing a Live Shopping strategy that takes shape on social networks in partnership with other brands.
Live shopping has been a real eye-opener, a great marketing tool to generate connection and customer engagement. Printemps uses live shopping as a complementary brick to its other marketing levers. Its strategy was to use personal shoppers to animate its live shopping events and it works! Now, the brand engages its community with one live event per week.
To go even further, Le Printemps wanted to offer its first virtual shop to immerse its customers in a unique and attractive experience. Moreover, this experience could appeal to all customer targets, even those who are more wary of new technologies. For your customers, this new trend does not require any knowledge in the field but only immerses them in a new universe.
Adidas x Prada: The New NFT Obsession
Blockchain technology is well known in the fashion and luxury industry. Like the collaboration between Adidas and Prada using web3 technology. The first NFT collection consisted of compiling photos from members of their community to create a mosaic in the form of NFT. A total of 3,000 photos were collected! Each of them will keep the rights to their NFT and will receive royalties if they resell it.
What strategy should be put in place for small and medium-sized enterprises?
Web3 seems to be reserved for big brands, so what is the application for smaller brands?
Web3 will breathe new life into the internet by breaking down the hierarchy of information and empowering users. The implementation of web3 will encourage companies to focus on the customer experience.
Above all, it is important for companies to create a strong community around the brand before implementing a large-scale web3 project.
Your company must constantly evolve with its audience by responding to new consumer habits. It is therefore necessary to reinforce this bond of trust that unites you by proposing personalized content on your social networks and on your website to increase your visibility:
- Online catalogue
- Previously viewed item
- Personalised discount vouchers
- Complementary products
The website is one of the essential tools to exploit and you will gradually adopt the logic of web3 by switching to live shopping!
Indeed, live shopping has allowed several brands to boost their business by offering a new customer experience.
Live me up offers a live shopping solution that allows you to present your products in a live setting and gives your customers the opportunity to buy live. With Live me up, it's not just any live show, it's broadcast directly on your website and then generates a replay that can be consulted at any time of the day.
Live shopping will allow you to build customer loyalty but also to create an engaged community.
Today, some companies do not wish to invest in web3 but rather seek to understand its interest before launching into this new dimension!
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