Successful Strategies for Big Corporations Entering the Web3 Market
According to the latest market report, the global Web3 market is expected to grow at a compound annual growth rate of over 40% in the next five years. The rapid expansion of this market has attracted the attention of numerous big corporations and startups, making the competition even more intense.
In this emerging field of Web3, many companies hope to get a slice of the pie in this promising market. However, we can observe from the recent market in Japan that large corporations entering this field have not been able to dominate the existing Web3 vertical leaders, often due to their neglect of their own advantages. When big corporations enter this field, the key factor that determines their success or failure is how they can leverage their existing strengths to gain a competitive advantage.
The Unsuccessful NTT Scramble Wallet
When NTT (Nippon Telegraph and Telephone Corporation) entered the Web3 market, it launched the Scramble Wallet service, but this attempt did not achieve the expected success. NTT, as one of Japan’s largest telecommunications companies, has a huge brand influence and hundreds of millions of users. However, when promoting the Scramble Wallet service, NTT failed to fully utilize its existing brand awareness and customer base to promote its new product. As a result, the market penetration rate of NTT Scramble Wallet is extremely low (from the download count on Google Play, it has not even exceeded 10,000 downloads), far from reaching the expected number of users and transaction volume.
One of the main issues when NTT entered the Web3 market was its 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. In addition, NTT’s marketing strategy was also insufficient, failing to effectively attract and convert its existing telecommunications user base.
Mercari, with the Highest Number of Bitcoin Accounts
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 surprisingly Mercari.
Founded in 2013, Mercari is a Japanese 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 to become 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. Mercari successfully expanded into the Web3 market by offering Bitcoin purchase services within its application and integrating it with its existing payment system, Mercari Pay. This strategy effectively utilized its existing brand and user base.
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 can be attributed to Mercari fully utilizing 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’s data, global blockchain spending is expected to reach $19 billion in 2024. This growth indicates the enormous potential of the Web3 market but also means that the competition will become even fiercer. For big corporations, how to stand out in this market will depend on their ability to effectively leverage their existing assets and technological advantages.
The strategy for big corporations entering the Web3 market should not solely rely on massive funding, such as developing new wallets or blockchain technologies. This strategy has slim chances of success when facing mature products like MetaMask or Phantom. In contrast, utilizing existing assets for innovation often leads to success. The success story of Mercari demonstrates how market expansion can be achieved through the integration of existing assets and technologies, while 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 corporations entering the Web3 market should consider the following strategies: firstly, fully integrate existing technology and infrastructure resources to ensure the security and reliability of the product. Secondly, design products that meet the needs of the target users through in-depth market research and user analysis. Additionally, utilize existing brand influence and marketing channels for precise market promotion to attract more potential users.
The key for big corporations entering the Web3 market lies in how they can leverage their existing assets and resources, rather than just relying on funding. Only in this way can they achieve success in this fiercely competitive emerging market. In the future, we look forward to seeing more big corporations intelligently utilizing their advantages to create new value in the Web3 field, bringing us more innovation and convenience.