Successful Strategies for Large Enterprises Entering the Web3 Market
According to recent market reports, the global Web3 market is projected to grow at a compound annual growth rate of over 40% in the next five years. This rapid expansion has drawn significant attention from numerous large enterprises and startups alike, intensifying competition in the field.
In this emerging realm of Web3, many companies aspire to carve out a share in this promising market. However, insights from Japan’s recent observations in the Web3 market reveal that few large enterprises have managed to surpass existing leaders in Web3 verticals. The key often lies in their oversight of leveraging their own strengths. How large enterprises utilize their existing advantages when entering this field becomes crucial in determining their success.
NTT’s Unsuccessful Venture with Scramble Wallet
When NTT (Nippon Telegraph and Telephone Corporation), one of Japan’s largest telecommunications companies, ventured into the Web3 market with its Scramble Wallet service, the endeavor did not yield the expected success. Despite NTT’s immense brand influence and a user base in the hundreds of millions, they failed to fully capitalize on their existing brand awareness and customer base to promote their new product. As a result, NTT Scramble Wallet saw minimal market penetration (with download numbers from Google Play not exceeding ten thousand downloads), far below anticipated user numbers and transaction volumes.
One of NTT’s primary challenges upon entering the Web3 market was the underutilization of its robust technological and infrastructure resources. For instance, NTT possesses advanced network security technologies and extensive data center resources, but these resources were not effectively integrated into Scramble Wallet, resulting in poor performance in terms of security and user experience. Furthermore, NTT’s marketing strategy proved inadequate, failing to effectively attract and convert its existing telecommunications user base.
Mercari: Leading with Most Bitcoin Accounts
In contrast, leveraging existing assets for innovation often leads to success. For example, in the Japanese market last year, the platform with the highest number of newly opened Bitcoin accounts was unexpectedly Mercari.
Founded in 2013, Mercari is a Japan-based e-commerce platform specializing in the trade of second-hand goods. Its core business is its app, which facilitates buying and selling various second-hand items. Since its inception, Mercari has rapidly grown to become Japan’s largest second-hand goods trading platform and was listed on the Tokyo Stock Exchange in 2018 with a market value reaching billions of dollars. By offering Bitcoin purchase services within its app and integrating them with its existing payment system, Mercari Pay, the company enabled users to easily buy and use Bitcoin. This strategy successfully leveraged its existing brand and user base to expand into the Web3 market.
Specifically, Mercari added over a million Bitcoin accounts in 2022 alone, establishing itself as one of the fastest-growing cryptocurrency service providers in the Japanese market. This success can be attributed to Mercari’s effective utilization of its existing user base and brand influence, combined with seamless user experience integration through existing payment systems.
Comprehensive Analysis
According to IDC data, global blockchain spending is expected to reach $19 billion by 2024. This growth indicates immense potential in the Web3 market, accompanied by intensified competition. For large enterprises, standing out in this market will hinge on their ability to effectively leverage existing assets and technological advantages.
Strategies for large enterprises entering the Web3 market should not merely rely on substantial financial investments, such as developing new wallets or blockchain technologies. Such strategies face slim chances of success against mature products like MetaMask or Phantom. Instead, leveraging existing assets for innovation often proves more successful. Mercari’s case illustrates how integrating existing assets and technologies can expand market reach, whereas NTT Scramble Wallet’s failure serves as a reminder that neglecting effective utilization of existing resources and assets makes success challenging in the fiercely competitive Web3 market.
To avoid the pitfalls experienced by NTT Scramble Wallet, other large enterprises entering the Web3 market should consider the following strategies: first, fully integrate existing technological and infrastructure resources to ensure product security and reliability. Second, conduct thorough market research and user analysis to design products that meet target user needs. Additionally, leverage existing brand influence and marketing channels for precise market outreach to attract more potential users.
The key for large enterprises entering the Web3 market lies in how they leverage their existing assets and resources, rather than solely relying on financial investments. Only through this approach can they achieve success in this competitive emerging market. Looking ahead, we anticipate more large enterprises to cleverly leverage their advantages, creating new value in the Web3 domain, and bringing us further innovation and convenience.