The Key to Success for Large Enterprises 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. This rapid expansion of the market has attracted the attention of numerous large enterprises and startups, leading to increased competition.
In the emerging field of Web3, many companies hope to carve out a share in this promising market. However, recent observations of the Web3 market in Japan have shown that few large corporations have been able to surpass the existing leaders in Web3 verticals. The reason behind this often lies in their neglect of their own advantages. When entering this field, large enterprises need to leverage their existing strengths to gain a competitive advantage, which becomes a key factor in determining their success.
The Unsuccessful NTT Scramble Wallet
When NTT, one of Japan’s largest telecommunications companies, entered the Web3 market, it launched the Scramble Wallet service, but this attempt did not achieve the expected success. NTT possesses a massive brand influence and hundreds of millions of users as one of Japan’s largest telecommunications companies. However, NTT failed to fully utilize its existing brand recognition and customer base to promote its new product, Scramble Wallet. As a result, NTT Scramble Wallet had a very low market penetration rate (even from the download numbers on Google Play, it has not exceeded 10,000 downloads), falling far short of the expected number of users and transactions.
One of the main issues NTT faced when entering 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. Additionally, NTT’s marketing strategy proved to be insufficient, as it failed to attract and convert its existing telecommunications user base effectively.
Mercari, the Company with the Most Bitcoin Accounts
In contrast, using existing assets for innovation often leads to success. For example, last year, Mercari, a Japanese e-commerce platform that primarily offers second-hand goods trading services, surprisingly ranked first in the number of newly opened Bitcoin accounts in the Japanese market.
Founded in 2013, Mercari quickly grew 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 several billion dollars. Mercari successfully expanded into the Web3 market by providing Bitcoin purchasing services within its application and integrating it with its existing payment system, Mercari Pay, allowing users to easily buy and use Bitcoin. This strategy effectively utilized its existing brand and user base.
Specifically, in 2022, Mercari added over a million Bitcoin accounts, making it one of the fastest-growing cryptocurrency service providers in the Japanese market. This success can be attributed to Mercari fully leveraging its existing user base and brand influence and providing a seamless user experience by integrating its existing payment system.
Comprehensive Analysis
According to IDC data, global blockchain spending is expected to reach $19 billion by 2024. This growth indicates the tremendous potential of the Web3 market but also signifies increased competition. For large enterprises, standing out in this market will depend on their ability to effectively utilize their existing assets and technological advantages.
The strategy for large enterprises entering the Web3 market should not only involve substantial investment, such as developing new wallets or blockchain technologies. Such a strategy has little chance of success when facing mature products like MetaMask or Phantom. Instead, leveraging existing assets for innovation often leads to success, as demonstrated by Mercari. On the other hand, the failure of NTT Scramble Wallet reminds us that without effectively utilizing existing resources and assets, it will be challenging to succeed in the fiercely competitive Web3 market.
To avoid the failure of NTT Scramble Wallet, other large enterprises entering the Web3 market should consider the following strategies: Firstly, they should fully integrate their existing technology and infrastructure resources to ensure product security and reliability. Secondly, they should design products that meet the needs of the target users through in-depth market research and user analysis. Additionally, they should use their existing brand influence and marketing channels to conduct precise market promotion and attract more potential users.
The key to large enterprises entering the Web3 market lies in how they leverage their existing assets and resources, rather than solely relying on financial investment. Only in this way can they achieve success in this fiercely competitive emerging market. In the future, we look forward to seeing more large enterprises cleverly utilizing their advantages to create new value in the Web3 field, bringing us more innovation and convenience.