What: NFTs are often seen as a significant new technology allowing to protect and very ownership of digital assets. Coresight explores their application in retail.

Why it is important: Even though some might consider it as too early, many brands and retailers have already launched trials with NFTs, often with financial success. Coresight explores their meaning and implication, including in the coming retail in the metaverse activities.

NFTs are non-exchangeable units of data stored on an indelible record of transaction (the blockchain). External events (Covid-19 pandemic) and industry developments (the metaverse being increasingly pushed forward by Silicon Valley) have made NFTs visible to the general public and increasingly popular. According to Coresight, the NFT market represents $35 bn in 2022 and is expected to grow to $80 bn by 2025.

NFTs are central in the metaverse, as users are increasingly interested in equipping their avatars with unique features. The metaverse being in reality a collection of various platforms, NFTs allow for interoperability, allowing users to bring their assets and avatars between virtual worlds. They also allow a very strong individualization per se, as shown by the Ready Player Me initiative, which allowed owners of the CryptoPunks NFTs to have their avatars represented by these NFTs on various virtual word platforms.

Coresight reviews in this report the various technologies available to retailers who want to venture into NFT initiatives, and makes a balance between Solana, Ethereum, Solanart and AtomicMarket.

Notable examples of successful NFT initiatives in retail include Nike, Clinique, or Hot Wheels (toys).

NFTs and retail metaverse