Successful Strategies for Big Businesses Entering the Web3 Market
According to the latest market reports, the global Web3 market is expected to grow at a compound annual growth rate of over 40% in the next five years. This rapid expansion has attracted the attention of numerous big businesses and startups, making the competition even fiercer.
In this emerging field of Web3, many enterprises hope to get a slice of the pie in this promising market. However, we can observe from recent market trends in Japan that big companies have not been able to dominate the Web3 vertical sectors as much as expected, often due to their neglect of their own advantages. When entering this field, how big businesses utilize their existing strengths to gain a competitive advantage becomes the key factor in determining their success or failure.
The Unsuccessful NTT Scramble Wallet
When NTT (Nippon Telegraph and Telephone Corporation) ventured into the Web3 market, it launched the Scramble Wallet service, but it did not achieve the expected success. As one of Japan’s largest telecommunications companies, NTT has a huge brand influence and hundreds of millions of users. However, when promoting the Scramble Wallet service, NTT failed to fully leverage its existing brand awareness and customer base to promote its new product. As a result, NTT Scramble Wallet had a very low market penetration rate (even less than 10,000 downloads from Google Play), far from the expected number of users and transactions.
One of the main problems NTT faced when entering the Web3 market was the failure to fully integrate its powerful technology and infrastructure resources. For example, NTT has advanced network security technology and massive data center resources, but these resources were not effectively utilized in Scramble Wallet, resulting in poor performance in terms of security and user experience. Additionally, NTT’s marketing strategy proved to be insufficient in effectively attracting and converting its existing telecommunications user base.
Mercari: The Bitcoin Account Leader
In contrast, utilizing existing assets for innovation often leads to success. For example, last year, the company with the highest number of newly opened Bitcoin accounts in the Japanese market was none other than Mercari.
Mercari, founded in 2013, is a Japan-based e-commerce platform that primarily provides a service for buying and selling second-hand goods. Its core business is its application, which allows users to trade various second-hand items. Since its establishment, Mercari has quickly grown into Japan’s largest second-hand goods trading platform and went public on the Tokyo Stock Exchange in 2018 with a market value of billions of dollars. By offering Bitcoin purchasing services within its app and integrating it with its existing payment system, Mercari Pay, Mercari successfully utilized its existing brand and user base to expand into the Web3 market.
Specifically, Mercari added over one million Bitcoin accounts in 2022, making it one of the fastest-growing cryptocurrency service providers in the Japanese market. This success was attributed to Mercari’s full utilization of its existing user base and brand influence, as well as providing a seamless user experience through the integration of its existing payment system.
Comprehensive Analysis
According to IDC data, global blockchain spending is expected to reach $19 billion by 2024. This growth indicates the tremendous potential of the Web3 market but also implies that the competition will be fiercer. For big businesses, standing out in this market will depend on their ability to effectively utilize their existing assets and technological advantages.
The strategy for big businesses entering the Web3 market should not simply involve investing a large amount of money in developing new wallets or blockchain technologies. This strategy has little chance of success when facing mature products like MetaMask or Phantom. Instead, leveraging existing assets for innovation often leads to success, as demonstrated by Mercari’s case. On the other hand, the failure of NTT Scramble Wallet reminds us that without effectively utilizing existing resources and assets, it will be difficult to succeed in the fiercely competitive Web3 market.
To avoid the failure of NTT Scramble Wallet, other big businesses should consider the following strategies when entering the Web3 market: firstly, fully integrate existing technology and infrastructure resources to ensure product security and reliability. Secondly, design products that meet the needs of target users through in-depth market research and user analysis. Additionally, leverage existing brand influence and marketing channels for precise market promotion to attract more potential users.
The key for big businesses entering the Web3 market lies in how they utilize their existing assets and resources, rather than solely relying on financial investments. Only through this approach can they succeed in this competitive emerging market. In the future, we look forward to seeing more big businesses cleverly utilizing their advantages to create new value in the Web3 field, bringing us more innovation and convenience.
