"Double 11", also known as "Singles' Day", is the largest online shopping festival in the world, bigger than Black Friday and Cyber Monday combined. Value (GMV) records.
As the actual promotion period is getting longer and longer, and the 2021 "Double Eleven" pre-sale date has been advanced from November 1 to October 20, it seems that the larger GMV is not difficult to understand. But what will be really intriguing is how retailers and brands will push further to showcase new initiatives, business models and technological innovations.
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"Double Eleven", Alibaba is hyping up "NFT"
Before the Double Eleven shopping festival, many foreign luxury brands have entered the Chinese shopping field through NFT products.
Initially, the NFT products of Singles’ Day were scheduled to take place from October 20 to November 11, but many of them sold out in the days leading up to the event. While the western world is watching Facebook's efforts to bring the metaverse to life, e-commerce giant Alibaba has moved fast to jump on the bandwagon by launching a "Double Eleven Metaverse Art Exhibition" on its Tmall/Taobao mobile app . Tmall wrote on its Weibo that the event showcased eight brand collaborations including Burberry, Kiehl's, Coach and Swiss watchmaker Longines, all of which created NFT limited-edition collections for the event.
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Screenshot of special edition Burberry scarf with Xiaolu NFT sold in China / Tmall
Meanwhile, Longines launched a limited edition of 45 NFTs priced at 17,300 yuan ($2,700).
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An Alienware laptop packaged as an NFT/Tmall on Alibaba's Tmall platform
Another similar event is the Singles' Day "Metaverse Symphony," conducted by a digital avatar of Beethoven. Musicians are playing virtual instruments (in the form of NFTs) featuring brands like Bobbi Brown trumpets or Coca-Cola drums, which consumers can purchase individually through Alipay.
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New model: NFT+beauty
Similarly, our domestic brands are not far behind. The "natural hall" of the light of domestic products and Tmall also jointly created an NFT product called "Himalayan Ice Sundial", becoming the first domestic cosmetics brand to create online virtual digital products with Tmall. The cosmic gameplay, the pioneering concept is one step ahead, and the new trend of NFT beauty makeup is not to be missed. What new inspiration can the new model of "NFT+beauty makeup" bring to the entire industry?
Ice muscle water and the blockchain do not seem to be products of the same dimension, but they have formed a CP. It is reported that the natural Tang Thangka ice muscle water + NFT version of the ice muscle water collection is only limited to 100 copies. AYAYI, a surreal digital human and the hottest virtual character, is the digital helper of Tmall super brand.
However, although the "NFT+beauty makeup" model is quite innovative, Nature Hall is not the first company to eat crabs.
Not long ago, Givenchy Beauty announced that it would launch a series of NFT artworks, becoming the first fashion beauty brand to launch an NFT project. The NFT art series will be jointly completed by Givenchy, London gallery owner Amar Singh and artists from Rewind Collective.
There are also some niche beauty brands that are also eager to try. For example, after Michelle Phan restarted EM Cosmetics, the platform adopted blockchain technology; online cosmetics retailer Cult beauty is using blockchain to combat the greenwashing phenomenon in the beauty industry; Look Labs is Combine fragrance and NFT.
Many beauty brands have become enthusiastic embracers of NFT, mainly for the following three reasons: First, the blockchain technology behind NFT does have a certain role in promoting the development of the beauty industry. Just like EM, Cult beauty and Look Labs mentioned above, the blockchain has changed the way they handle money, data and logistics to a certain extent.
Second, from the perspective of value and image, entering NFT is an important manifestation of innovation and catching up with new technologies. It can not only convey brand values, carry brand value, but also shape a high-end corporate image.
Third, from a marketing perspective, the popularity of NFT continues to rise. According to Coin Gecko data, in 2021H1, the overall market value of NFT reached 12.7 billion US dollars, an increase of nearly 310 times compared to 2018. According to Non Fungible data, the 2021Q2 NFT transaction scale reached 754 million US dollars, a year-on-year increase of 3453%, and a month-on-month increase of 39%, and the transaction volume achieved explosive growth.
Can NFT stimulate the vitality of the beauty market for a long time?
After brands such as Nature Hall and Givenchy launch NFT artworks, the popularity of NFT will also help brand marketing, so as to achieve better marketing effects. So the question is, can NFT empower the beauty market for a long time?
Although the "NFT+beauty makeup" model has merits, there are still smogs that have not yet cleared up. On the one hand, there are certain risks in bundling with NFT.
The reason for saying this is because NFT is an unregulated virtual asset, and the world has not yet issued NFT laws and regulations. turmoil.
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It is reported that the total market capitalization of cryptocurrencies has dropped from the historical high of 2.5 trillion U.S. dollars in May this year to the current 1.3 trillion U.S. dollars, while the overall sales of the NFT track have plummeted from a high of 176 million U.S. dollars to 8.6 million U.S. dollars, a sharp drop. 95%. Based on this factor, whether it is a blind box, beauty makeup or luxury goods, before you want to form a CP with NFT, you still need to evaluate whether you can bear the risks that it may bring in the future.
In addition to the risks that the policy may bring, the NFT mania has also spawned some industry chaos, including but not limited to Ponzi schemes, hackers, money laundering crimes, contraband transactions, and even packaging works of low artistic value on the chain. A new technology scam that combines concepts such as art investment and equity crowdfunding.
Of course, hype and price gouging are the most common. Where there is a market, there are "scalpers". According to screenshots provided by netizens, a scalper posted on Xianyu: "Recover Alipay Dunhuang Fine Arts Research Institute NFT number 0001 or 6666 at a high price, one hundred thousand pieces, and other numbers 500 pieces." On a second-hand trading platform, " The original price of the NFT art collection launched by "Magic Core" is 18 yuan. The auction price has risen to 100,000-200,000 yuan, and the price of the special limited edition NFT has risen to 260,000 yuan.
Therefore, under the background that the NFT ecology is not perfect and healthy enough, and the industry is not yet compliant, beauty companies need to take a more cautious attitude when entering the market.
It has to be admitted that for beauty brands, entering NFT is more like an innovative behavior of exporting brand culture in the digital economy. Showing the brand itself is more valuable than getting money.
NFTs — known in China as “digital collectibles” — are often packaged with physical objects, and digital products are limited-edition items. NFTs, or non-fungible tokens, are digital assets that tie ownership to a unique physical or digital item such as artwork, music, or video. They are securely recorded on the blockchain, making them difficult to alter or counterfeit. But whether the new model of "NFT+beauty makeup" is desirable, and whether it can bring vitality to the industry for a long time, this proposition may take more time for the market to give us an answer.
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