"Closer to Users"... Distribution Companies Fully Launching NFT Businesses

Shinsegae Department Store Sells NFTs Using Own Characters... Provides Benefits to Holders
Hyundai and Lotte Department Stores Launch NFT Business... Focus on Developing NFT Content
Experts Say "Create Content People Want to Own"

Shinsegae Department Store Puvilla Character. Photo by Shinsegae Department Store

[Asia Economy Reporter Kang Wooseok] The distribution industry is diving into the non-fungible token (NFT) business. They are either collaborating on NFT-related projects or creating characters to approach customers in a friendly manner. Experts suggest that to sustain NFT marketing, the focus should be on improving the quality of the content.

On the 13th, Shinsegae Department Store announced that all 10,000 NFTs created using its own brand character 'Poovilla' were sold out. The Poovilla NFTs were sold in three rounds through an NFT trading platform on the 11th. All transactions were conducted using cryptocurrency, with prices set at cryptocurrency equivalent to 110,000 KRW for the first and second sales, and 130,000 KRW for the third sale.

The NFT sales were also linked to customer benefits at the department store. Owners of the NFTs can receive perks such as access to the Shinsegae Department Store lounge and shopping discounts, depending on the ownership duration and tier.

On the 9th, Hyundai Department Store signed an official business agreement with BlueberryNFT. Photo by Hyundai Department Store

On the 9th, Hyundai Department Store announced its entry into the NFT business by signing an official business agreement with BlueberryNFT. Last month, it also revealed plans to develop and introduce its own electronic wallet service called 'H.NFT' for storing and managing NFTs.

Hyundai Department Store plans to convert award-winning works from its recent 'Hyundai Children's Drawing Contest' into NFTs and provide them to the winning customers' families via H.NFT. They also intend to create personalized NFTs by collaborating with artists to produce NFTs featuring customers' desired quotes or phrases, showcasing a unique and customized approach.

Lotte Homeshopping is also putting effort into the NFT business, having opened 'NFT SHOP' on its own mobile shopping app on the 2nd of last month, becoming the first in the distribution industry to do so.

Lotte Homeshopping has consecutively released NFTs based on its own brand characters like 'Belligom' and content such as the movie 'The Witch: Part 2'. They plan to introduce new NFTs through collaborations with famous brands in the future.

NFT marketing has the advantage of sharing monetary value with customers and providing usage benefits during the process, allowing companies to get closer to their customers. It is particularly notable for attracting younger generations who focus on the non-fungibility and scarcity of NFTs.

Additionally, the freshness of the NFT technology itself can be expected to enhance brand image and other effects.

Experts suggest that for NFT marketing in the distribution industry not to be a one-off event, it is important to offer NFT products that customers genuinely want to own, rather than just simple marketing gimmicks.

Professor Lee Eunhee of Inha University's Department of Consumer Studies said, "When distribution companies promote NFTs, it definitely creates expectations among consumers," emphasizing, "What matters most is what the distribution companies have and how they create NFTs." She added, "For example, if they make characters, they need to continuously develop attractive factors such as various poses, costumes, and facial expressions of the characters," and continued, "The character seals of Pok?mon bread, which recently became a hot topic, are in the same context. They need to create content that makes people want to own and proudly show off their NFTs."