🕐 3-min recap - Consumer Brands in Web3 Weekly

🟣 Germany's loyalty programs market projected to reach $9 billion (about $108 per person) by 2028 with integration of Web3 & NFTs driving innovation - link 

🟣 Hugo Boss joins Roblox as ‘Planet Hugo,’ generating 100k visitors in the first day - link 

🟣 Animoca Brands and Blockpass partner to build more secure and regulatory compliant Web3 - link 

🟣 Alipay collaborates with Avalanche for Web3-powered voucher program - link 

🟣 Starbucks concludes the Odyssey Beta program 'to prepare for what comes next’ - link 

🟣 Gucci prepares to launch AR experience on Apple Vision Pro - link 

🟣 Farfetch’s Wanna (a provider of AR for the luxury industry) has announced the launch of ‘virtual try-ons' for its bags - link 

Wanna is expanding the luxury shopping experience with their groundbreaking 'virtual try-ons' for bags.  

By leveraging AR technology, Wanna offers shoppers a chance to preview high-end bags on themselves, anytime, anywhere, with just their smartphones. 

The biggest problem with online luxury shopping was not being sure if your new piece would fit. 

If it doesn’t, product replacement and return processes take a lot of time and effort for customers and are extremely expensive for brands. 

This tool allows consumers to: 

👜 Try on luxury items in a virtual setting before purchasing, increasing confidence in their purchase 

👜 Experience the latest in luxury fashion without the need to visit a store, saving time and adding convenience 

👜 Share their virtual try-on experiences on social media, enhancing brand visibility and engagement 

Introducing AR try-ons can give luxury brands an innovative edge, making them stand out in a competitive market.  

It provides a unique shopping experience that can attract tech-savvy consumers and generate buzz around new collections. 

Brands that embrace AR can gain valuable insights from consumer interactions, tailor their offerings, improve customer satisfaction, and reduce returns due to increased purchase confidence.

Launched on December 8, 2022, Starbucks Odyssey was a bold approach at testing a new type of loyalty program, leveraging Web3 technology at its core.  

Starbucks has concluded its Odyssey Beta program with a comment indicating readiness to innovate further in enriching the experience for customers.  

While the Beta program is over, many Starbucks fans had a fun time and are looking forward to what’s next. 

Some of the superfans already created an unofficial server to keep the community alive. 

Starbucks Odyssey has had some great success since its launch: 

🟣 Volume: $3,4 million 

🟣 Participants: 58,000 

🟣 Collections: 27 

🟣 Discord members: 15,000 

This initiative not only highlighted the feasibility of Web3 integration into loyalty programs but also carved a path that many in the industry are watching.  

The program’s operational success has set a prime example of how traditional loyalty mechanisms can grow through blockchain and NFTs. 

🔑 Reward appropriately within your brand’s culture.  

The program gave out rewards that made sense for coffee lovers, like free drinks, special items or even trips to farms.  

🔑 Monetize the secondary market for collectibles.  

Starbucks was earning a 7.5% fee from all trades between users. 

🔑 Remember that AR & Web3 technologies are early 

The challenges of adopting these technologies at scale, emphasizing the need for iterative testing and learning phases. 

Starbucks stands at a strong position where they can: 

🪻 Harness the strong following & data to tailor future customer-centric experiences that resonate on both personal and digital fronts. 

🪻 Further its reputation as an innovator by exploring how to embed Web3 features more seamlessly into its existing business model for enhanced customer engagement and loyalty. 

Learnings from Odyssey’s Web3 loyalty should prompt other brands to consider: 

🟣 Exploring new revenue streams through digital collectibles and tokenized rewards. 

🟣 Dedicating efforts to forge direct community bonds and enabling conversations among customers. 

🟣 Acknowledging the growing appetite for digital-first experiences reflected in the active and responsive audience of the Odyssey program. 

🟣 Implementing loyalty programs at a scale requires a cohesive approach & leadership commitment. 

W3A Tip: Other brands can take on this opportunity and create a highly customized airdrop campaign for Starbucks Odyssey holders, as they're proven to show interest in digital collectibles and eager for digital brand experiences. 

Wanna’s implementation of virtual try-ons could allow brands to innovate further with AR to reduce costs and enhance user experience. 

Starbucks hints at a further activation of its Web3 loyalty scheme with key learnings from the beta. 

As we look further, it’s clear that these innovative technologies will create many opportunities which brands can capitalize on but there will certainly be challenges to solve along the way. 

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