Foreword
In 2021, the NFT craze swept the world, allowing many speculators with the mentality of getting rich overnight to enter the market for speculation. The value of art was re-endowed, but the over-financialization model concealed the real value. The entrants withdrew one after another and soon fell into a cold winter. I believe that the value of blockchain in the future for fields such as art and finance will inevitably exist, and we need to maximize its value under correct supervision. Through the pain point analysis of the previous entrepreneurial experience, I proposed a business system based on the underlying logic of Web3. The core of the platform is to provide an IP incubation mechanism, reconnect the relationship between IP, products and consumers, and construct an open world for Generation Z users. Through the economic system of the full-chain model and the open system gameplay, the traditional logic of product promotion and IP incubation will be changed, and consumption, social interaction and games will be integrated.
Status of IP Market
In 2020, China's authorized merchandise retail market exceeded 100 billion yuan, and in 2021, it still maintained a positive growth trend, including retail sales, the number of authorized IPs, authorized revenue, and the number of authorized brand companies. All these indicators show comprehensive growth. Globally, retail sales of licensed goods exceeded $300 billion. China's IP licensing market is still in its emerging stage. Compared with the largest market in North America (58%), China accounted for less than 5% of global retail sales of licensed goods in 2019.
IP Traditional & New Model
The IP industry chain is long and complex, involving complex production and distribution processes. Only a few major IPs with better opportunities can succeed. Especially in the past decade, successful new IPs are rare. Under the traditional IP creation and operation model, the copyright and most of the income of IP often belong to the head centralized institutions, and the strong will always be strong.
Since 2015, the concept of IP pan-entertainment new ecological industry chain has emerged; in 2021, NFT will usher in a development boom, and the IP operation logic will also change. The authorization process of the traditional IP licensing model is long and the degree of standardization is low. Therefore, the NFTization of old IPs has a certain threshold, which not only requires cross-industry, but also involves a series of links such as standard authorization, IP value assessment, commercial value calculation, and content development; the new digital content in the future, with IP and NFT operation (commercialization), innovated the IP licensing model at the beginning of its birth, with a shorter chain and higher monetization efficiency.
Case Study
At that time, I mainly participated in the domestic market, and I didn’t know enough about the overseas web3 ecosystem, so I also investigated some relevant cases to explore the business possibilities under the web3 model. Based on my research and analysis of the CBBE model, I summarized four key brand components.
Relation Tree Analysis
System Map
MonsterIsland is a platform that provides IP incubation mechanism, reconnecting the relationship between intellectual property, products and consumers, and building an open world for Generation Z users. Through the full blockchain model economic system, open system gameplay to attract users. As shown in the figure, a system that links the three parties is formed. Through the IP's "creation to make money" model, the product part helps users connect to the real world, and the game world helps users experience the virtual world, and finally binds the user's mind to the platform.
User Journey Map
- Monster Square: This is an area where IP parties (intellectual property owners) publish activities for users to choose from. In Monster Square, you can participate in various activities organized by well-known IP parties. These activities may include challenges, competitions, limited-time tasks, etc. Participants have the opportunity to obtain rare NFTs, special rewards, or opportunities to interact with IP parties.
- Archipelago Area: This is an area composed of user-owned plots, where each user can build, create, and develop. In the archipelago area, you can build your own virtual world, interact with other players, and experience social, entertainment, and business activities.
- Forge City: This is a bridge between equity NFT (Non-Fungible Token) and actual products. In Forge City, you can use your NFT to purchase real-world goods and services, which may represent special rights, limited edition goods or unique experiences.
- Future City: This is an area full of creative opportunities and the opportunity to become part of a team. In Future City, you can participate in various projects, meetings, co-creation activities, and build the future of games with other creators, developers, and designers. This area is full of creativity, cooperation, and the possibility of realizing dreams.
Business Canvas and Profit Points
Reflection
This business plan is just a preliminary construction I made based on the market at the time. The formation of the Internet's Web3 ecosystem is still a long way to go. Sometimes I wonder, is it just technology that limits the current development? I don't think so. In the early days, the consensus of "getting rich overnight" was occupied, which also affected the mentality of those who were interested in the market later. New users were considered to be leeks and entered a vicious circle. Moreover, as I have done in my research and analysis, many brands want to use this to empower, but found that many of them are not as strong as the new IP potential in the end. The decentralization proposed by Web3 has also formed a game between capital and new individuals. Forcibly putting Web2 products into the concept of Web3 may not work in many cases.
Some people say, "It is very simple to tell users how to use a wallet, but it is difficult to tell users why to use a blockchain wallet." Perhaps one day, when there is no need to explain to users what blockchain is, everyone will naturally know the value of this thing, and treat blockchain as a part of life like online shopping now, then the value of digital assets can be truly highlighted.
While maintaining my exploration of the industry, I also pay attention to the country's policies. As a person working in the Greater Bay Area, it also provides a rich soil for science and technology business. Regardless of whether the future is called the Internet in the form of Web3, I believe that the industry will slowly develop in a positive direction.