There is a “big disconnect” between the NFT launches of some brands and their traditional customer bases, the former innovation director at Farfetch has said.

At the Retail Technology Show, Nina Patel, Farfetch’s ex-director of innovation, retail and Web3, said that she has “struggled” with some of the NFT drops that have been rolled out by brands.

“By dropping these you managed to get Web3 enthusiasts onto your brand, but you also have your real customers that shop with you,” she told attendees. “There’s a big disconnect between the launches we’ve seen that are trying to tap into new customer bases, but [they’re] not the people actually consuming and buying with [them].”

However, she did point to some examples where retailers have delivered effective alignment between their existing consumers and new ones.

She said that Nike, adidas, and Superplastic had created “strong alignment” between who’s already shopping with them and the “Web3 crowd”.

“There’s longevity there as there is a cross over,” she explained.

In the height of the hype around NFTs, a high percentage were bought on a speculative basis, she said.

“Now [retailers] have to decide [if they are] going to continually invest in this if the people investing aren’t [their] core people,” added Patel.

The Retail Technology Show is taking place at Kensington Olympia, London on 26 and 27 April 2023.

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