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Innovation in Asia: NFTs deserve a nuanced view from brands in China

Article by Man-Chung Cheung  |  Mar 23, 2022
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Innovation in Asia: NFTs deserve a nuanced view from brands in China
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Financial Services
China

Nonfungible tokens (NFTs) have entered the mainstream in China, offering brands a fresh way to express their creativity and engage young consumers. But stringent regulatory scrutiny means marketers must play by the unique rules governing NFTs.

At a Glance

Countries mentioned: China

Key companies: Alibaba, Ant Group, Baidu, Bilibili, JD.com, NetEase, Tencent, Weibo, Xiaohongshu

Essential stat: NFT transaction values in China will grow from RMB 0.30 billion ($46.5 million) in 2020 to RMB 29.52 billion ($4.57 billion) in 2026, according to research firm Lead Leo.

The opportunity: Consumers in China are mainly buying NFTs as digital collectibles, not investments. Global brands and retailers should use NFTs to drive conversations and engagement with customers and link them to other utilities and value-added services.

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