If you’ve worked in the licensing industry for some time, you probably feel as if you’ve seen it all. From licensed apparel to toys, KFC kid's meal toys and games to beauty and cosmetics, licensed products have almost always been physical, tangible and relatively predictable.
Now, with a growing digital marketplace, technology innovations and a pandemic shifting multiple companies’ focus to digital offerings, it was the perfect time for an all-new licensed product to hit the market: the NFT, or non-fungible token.
Digital ownership of intellectual properties allows consumers to be involved in their fandoms like never before. NFTs give companies and individual the option of giving consumers a level of exclusivity to likenesses and properties that has never been seen in the market before.
Every business is going to have a strategy revolved around NFTs, the same way they now have social media strategies. It's an adjusted extension of the brand. So, everyone needs to have a strategy for the long term. With this explosion in digitization across the globe, and now the introduction of NFTs across the licensing industry, it begs the question of what that means for physical licensed goods and how they will fare in the future.
It is of course arguable that digital goods could eventually outweigh physical goods in the licensing industry, especially if the trend of exclusivity continues. However, the one thing that NFTs currently lack is the ability to do is fill the gap of activity-based physical products. Sure, an NFT could easily be produced in the form of a movie, a video game or a television show. Those can be exchanged digitally. Physical collectibles like makeup, toys, apparel and more have the added benefit of real-world use and décor options.
The new way of 'ownership' and owning a digital asset… that is new and interesting and the foundation for NFTs and their existence, and the most intriguing potential for licensing is the idea of a recurring royalty. Imagine a physical action figure or collectible sells today, and then sells on eBay ten years later for $10,000. The brand does not participate in that secondary transaction. Thanks to NFTs and the blockchain, this is now possible. The brand can participate in the recurring transaction, every time an item sells – forever. Imagine the same for a comic book, or a ticket to the Super Bowl. Imagine if the brand could participate in the re-sell, every time – forever.
Licensed goods, therefore, hold value in both digital and physical forms, and companies involved in licensing should balance their focus between the two to implement strategies that will bring in the benefits – and the revenue – from both.
Fans are loyal to the IP that they relate to, regardless of its form, but giving fans the ability to show off their fandom externally through physical products while giving them the internal satisfaction of exclusivity through digital products is a guaranteed recipe to keep consumers coming back for more.
MERCURY is glad to joint venture with PPW to provide a Smart Contract platform using blockchain technology.
About MERCURY
Licensing digital assets and establishing new monetization opportunities for the future is our mission. We redefine license trading and traceability as a platform you can trust. All our solutions aim to make licensing simple, fair and digital, for you and your customers. Whether in the real world or in a metaverse.
About PPW
With almost 30 years’ experience in strategy formulation in sales and promotion, PPW is a brand facilitator with traces all over the world. Its headquarter is located in Hongkong, and branch offices in all major cities, Shanghai, Beijing, Guangzhou and Shenzhen. The brands we carry are all reputable and enviable: Animation images like Peppa Pig, Hey Duggee, Moomin, Mr. Men Little Miss, Masha and the Bear, The Smurfs; life style IPs including BE@RBRICK, Me to You, Booto, Discovery Channel, Bear Grylls, BMW, Pantone and OUTDOOR PRODUCTS. PPW is the licensing agency of the top level European football clubs such as FC Barcelona, Atlético Madrid, FC Internazionale Milano etc.
PPW's mission is to deliver to clients a hassle free one-stop shop solution via our innovative and holistic services. Besides our experienced brand management and business development teams, our supporting teams, creative, legal and finance, are always ready to provide value-added services. In addition to the appreciation given by brand owners, PPW has been highly recognised in the licensing industry as PPW has received from the International Licensing Industry Merchandisers' Association the awards of Best Licensing Agency and Best Licensed Promotion.
