Starbucks vs Amazon 'NFT War'... Who's the winner?
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Starbucks, the world's No. 1 coffee brand, and Amazon, the world's No. 1 e-commerce company, have entered the NFT market, respectively. The goal is the same as to increase loyalty by providing consumers with a different digital experience, but the detailed strategy is very different. Depending on which of the two strong players' strategies leading the global retail market will dominate, it is expected to affect other companies preparing to enter the NFT.
Travel with Starbucks NFT
Starbucks unveiled Odyssey, a new reward program based on NFTs, in September last year. It is a program that allows Starbucks Rewards members to acquire and purchase digital collections by utilizing newly attracting web3 and NFT technologies. Until now, Starbucks Rewards have been provided under the name of FREQUENCY, but this Odyssey has the concept of becoming travelers who experience Starbucks with tickets called NFTs under the theme of "Travel (Journey)."
NFTs are offered under the name of travel stamps. If you buy a stamp NFT, you can also receive points to raise your rating. Raising the rating to points offers several rewards depending on the stage. It is designed to gain a sense of immersion and achievement by applying concepts such as raising levels to rewards. The reward consists of a variety of forms, from the right to taste new coffee before market, invitations to Starbucks Reserve Roastery store events that roast and serve coffee beans directly, and opportunities to tour Starbucks farms in Costa Rica.
The goal is to strengthen the connection between brands and consumers by building a journey to enjoy coffee better with Starbucks brands and providing three-dimensional experiences through quizzes and puzzles. It is not just a reward such as one star per cup of coffee or a free drink upgrade, but it provides more skin-friendly VIP benefits. Brady Brewer, Starbucks' chief marketing officer (CMO), said at an Odyssey presentation, "We are using Web3 technology to provide a new digital community. Through an immersive experience that combines both physical and digital, we will be able to connect consumers and provide new rewards," he said.
Starbucks first sold 2000 Odyssey Travel Stamps NFTs for $100 each in March. Sales were completed in 18 minutes and prices soared to $2,000 per unit in the secondary trading market. If Starbucks enthusiasts' participation increases and journey rewards that meet their preferences continue to be provided, there is a possibility that travel stamp NFTs will become digital assets with high investment returns.
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"Buy NFTs on Amazon, too"
Amazon announced its entry into the NFT in January. It is about entering the marketplace market that buys and sells NFTs to match the world's No. 1 e-commerce company. Initially, it was planned to establish an NFT marketplace last year, but it is known that the launch date was postponed to this year due to a series of unfavorable factors such as the collapse of Terra and the bankruptcy of FTX.
The NFT marketplace, named "Amazon Digital Marketplace," is scheduled to be launched on the 24th. Initially, it plans to start with a collection of 15 NFTs and gradually expand its items. For NFT purchases, credit cards, Amazon's existing payment method, are used without using virtual currency such as Bitcoin.
First of all, existing NFTs such as CryptoPunk and BAYC are not expected to be able to trade on Amazon's digital marketplace. NFTs that are traded using Amazon's own private blockchain network will also be newly created in cooperation with writers specializing in NFTs on Amazon. To this end, it is known that it has signed a cooperative relationship with famous writers such as Biffle and Fuzzy Penguin with the NFT project.
In particular, the early collection is expected to include NFTs in the form of combining physical and digital, which have recently drawn attention. If you purchase NFTs containing digital images of clothing in connection with clothing companies, it is the same form as delivering actual products. Digital fashion NFT project The Fabricant is expected to become a major NFT partner. Amazon's subsidiary, Internet streaming platform Twitch, is also expected to join the NFT ranks. Connecting with P2E game companies is being discussed as a likely way. It is a way to sell the rights to broadcast the game live on Twitch as an NFT.
Amazon is expected to strengthen compensation for Amazon Prime subscribers, a paid subscription model, through this NFT entry. Amazon also attached a message about digital tokens in an email to some Prime Video subscribers. The plan is to add NFTs to the list of special products offered to nearly 200 million Prime members.
As such, Starbucks Odyssey and Amazon Digital Marketplace are aiming for different goals while using NFT. Starbucks weighs on strengthening consumer loyalty, but Amazon prioritizes revenue growth per subscriber. Depending on the success or failure of the two companies' NFT businesses, it is expected to leave many implications for other companies that hope to enter the NFT business in the future.
Maeil Business Newspaper publishes related articles once a month in the "Money & Rich" section to broaden readers' understanding of the virtual asset market such as blockchain, virtual currency, and non-replaceable tokens (NFT). The Money & Rich blockchain paper is written by M-block, a blockchain subsidiary of Maekyung Media Group. M-Block is a blockchain-based virtual asset and NFT service technology company that provides reliable information and serves as a bridge between Maekyung Media Group readers, Blockchain, and Web3.
