In what ways can NFTs add value to retail goods?
As the first blockchain-backed clothing brand on Cardano, Origin Thread is a fantastic example of what NFTs can make happen in the real world. Their concept allows buyers to see the video of the creation and the lifecycle information by scanning a tag on a shirt. It is a useful way to check a product's authenticity and view the practicality of how it was made.
Let's take a look at 6 particularly interesting use cases:
#1 Track the origin of goods
NFT can be used to track the journey of the product – from sourcing of materials, production to distribution, and finally, sale to customers. This helps to create transparency around a product's life cycle.
This way, buyers can be confident that they are getting what they paid for and that the goods are genuine and have not been tampered with. Data tracked includes storage data such as the date and location of manufacture and details of any repairs or alterations made to the item.
Moreover, this helps brands to keep better track of their inventory and products. In the event of a product recall, they can quickly identify which batch of products is affected and take appropriate action.
#2 Connecting customers with the makers
NFTs are a great way for brands to support the makers directly, which is often difficult with mass-produced goods. By embedding NFT into a shirt, the buyer can see the information about the people behind its creation; this helps a buyer experience a more personalized connection with the people behind a product and the brand.
Buyers can use the information to contact the makers directly or learn more about their stories, which helps to create a more personal connection between the customer, the product, and the brand.
#3 Track the location of goods from manufacture to sale
NFTs help to ensure that goods are ethically and sustainably sourced by proving they were at a specific place at a specific time. This is achieved by including the exact GPS coordinates (latitude and longitude) in the NFTs metadata serving as proof of authenticity.
The process is beneficial for customers as they can track their goods' location throughout the supply chain, which gives them peace of mind knowing that their products are sourced transparently.
#4 Authenticate autographed items
To prevent forgeries, the artist or creator can add a robust identity meta standard DID (decentralized identifier) to an NFT. A DID ensures collectors and fans that they purchase a genuine physical item linked to an NFT and helps personalize the connection between fans and their favorite artists and creators.
#5 Give customers a voice in product development.
By doing a customer survey that embeds the results into the metadata of an NFT, brands can get feedback from customers about what they want to see in future products by allowing them to vote on the design of a new product or the color of an existing product.
It's a way for brands to crowdsource ideas from their customers and get feedback about what they want, as it helps to build a community around the brand by creating loyalty among customers.
#6 Enable on-demand manufacturing
After confirmed orders from buyers, manufacturing products allows brands to reduce waste and inventory costs. To make this work, when a buyer places an order, the NFT associated with the order signal the manufacturer to produce the item and ship it directly to the buyer.
This is convenient for buyers as they do not have to wait for the product to be shipped from the warehouse – it will be made specifically for them.
This is just the tip of the iceberg because we believe blockchain and NFT technology's real-life applications are endless.
Thank you for reading!
Your NMKR team