Web3 Luxury Commerce

The resale market appeals to all generations, both men and women. However, utilizing emerging technologies such as motion and Web3, our aim emphasized engaging older Gen Z and Millennial markets (Ages 25-45).

Gen Z, recognized as the most sustainability-conscious cohort, has increased its participation in the second-hand market. Since 2020, the number of Gen Z consignors has risen by 86%, and their purchasing has grown by 33%.

Millennials and Gen Z embrace secondhand fashion at a rate 2.5 times faster than other age groups, underscoring a strong shift toward sustainable consumer practices.

Since the website will be bilingual—English and Chinese—the aim was to focus marketing efforts accordingly, targeting 75% towards the United States and 25% towards China in urban and suburban area.

We conducted interviews with fashion experts and luxury goods enthusiasts that shop resale market products to deepen our understanding of the industry. With a comprehensive set of questions, these statistics helped refine our value proposition.

• 68% of customers use Google Shopping to compare prices for bags before verifying their authenticity.
• 67% of Luxury shoppers know exactly what they want to buy by name, brand, and size.
• 88% find displaying the bag in 3D motion helpful, although it does not influence their purchase decision; price remains the primary factor.
• Live Shopping is considered useful, yet none of our customers have purchased through live shopping networks.
• 75% are interested in shopping in a Virtual Reality environment, although none have yet experienced shopping in this way.
• 37% of respondents shop on Auctions to buy their luxury goods and peer-to-peer marketplaces.
• 80% would pay the market rate for rare luxury items if they can afford it.

Our user experience goals included prioritizing exceptional design, avatar creation, motion graphics, storytelling, and distributing to a variety of marketing channels to differentiate ourselves from the competition.

Our team researched the optimal lean solution to facilitate human-like avatars. This solution involved forming a partnership with a company specializing in realistic digital avatars, rather than developing them in-house.

The customizable avatars are enabled to adjust to resemble the user’s appearance. Users have the option to personalize their avatar’s name, outfit, skin tone, hair, eyes, lips, ears, body type, and other physical attributes.

The optional gamification element could potentially lower churn rates by offering a personalized virtual shopping experience.

The goal was to develop a custom 3D Motion module for showcasing products. In our initial research, we identified and confirmed the software solution capable of automatically converting photographs into 3D imagery. The only the technical integration involved combining the 3D modeling products with the avatar.

Our research shows that all luxury items carry a serial number and are verified for condition. Discovering that 75% of competitors use the same validation service, we initiated contact to explore a potential partnership.

Given our objective to build a custom e-commerce rather than relying on standard CMS solutions like Shopify or Magento, it was imperative to ensure the platform’s capability for integrating a wide array of APIs. The intention was to facilitate seamless expansion of marketing channels including TikTok, Instagram, Facebook, YouTube, and Pinterest integration functionalities.

This approach ensures the platform remains adaptable and scalable, ready to embrace evolving marketing technologies and trends.

We finalized the Business Requirements Document to ensure all stakeholders have a clear understanding of the project’s deliverables. This ten-page document outlined the lifecycle and roadmap to keep all activities on track with the business objectives.

Our team developed the User Story that outlines the interactions potential customers may encounter with the shop, covering both rare and volume items. The narrative spans from initial discovery through to post-purchase actions, carefully considering their needs, behaviors, and potential touch points along their journey.

Our team collaborated on the final version of the Mind Map. It visually represents the process we will follow, ensuring alignment throughout the project lifecycle.

The final logical model outlines the data structures and relationships, detailing entities, attributes, and normalization.

Below is the final version of the analytics scheme detailing the process of gathering, analyzing, and visualizing data to extract actionable insights. It covers data collection through to reporting, emphasizing continuous refinement and compliance with governance standards to enhance business decisions and operational efficiency.

Below is the final architecture designed not just to meet current needs but also to anticipate future expansion and technology shifts.

The project was completed in three months by a 12-member team, comprising a Product Manager, an Associate Product Manager, a UX Researcher, a Marketing Associate, three Project Managers, three Dev Ops specialists, and a Project Coordinator. It also included four consultants: a Web3 Lawyer, an NFT Specialist, a Generalist Consultant, and a Luxury Commerce Expert.

The product development and launch were halted due to the client’s change of heart, primarily driven by a sudden lack of funding. Despite providing initial loose estimates and timelines, the client underestimated the project’s depth and complexities.

Contributing to their decision was a shift in the economy and fear of inadequate ROI, especially given the extended bull market in the reseller sector, which had initially promised a steady flow of funds. Upon recognizing the funding shortfall, we offered options for securing angel investments, seed funding, or loans, which the client declined.

Consequently, the project did not proceed beyond the creation of a Minimum Viable Product (MVP) Startup Strategy. Despite these challenges, the stakeholders were satisfied with the outcome and the project concluded on a positive note.

The decision to forgo a standard Shopify setup for scaling was frequently revisited as stakeholders favored more complex, standout features over a basic initial MVP. Despite outlining the potential benefits of starting with a simple shop and expanding later, limitations within the CMS framework and stakeholders’ specific requests led us down a different path. We offered optimal lean solutions likely to succeed, but these were not pursued by the stakeholders.

Prioritizing stakeholder interests has always been my approach, particularly when their deep involvement is essential to success. Despite some initial disagreements on the project’s direction, the stakeholders ultimately had a positive perception of our efforts, resulting in a favorable outcome.

In any project, surprises and unforeseen challenges are inevitable, underscoring the importance of flexibility when encountering potential roadblocks. While the stakeholders demonstrated adaptability, they started to feel overwhelmed by the complex information they needed to digest, which they initially perceived as straightforward.

A significant issue arose from a miscommunication between the development and product teams. During a meeting, the development team provided a brief update and unexpectedly proceeded to outline additional processes, including timelines and deadlines. They suggested an immediate start to development in front of the stakeholders without prior discussion with the product team. This premature announcement caused the stakeholders to panic, as the final product deliverables had not yet been finalized.

Thinking they would impress by being proactive, the development team’s actions instead proved counterproductive, complicating the process and necessitating significant changes to the product. This resulted in a wasted 10 to 15 minutes of the meeting, forcing me to intervene abruptly and later hold a follow-up meeting to reassure the stakeholders and mitigate any concerns. Fortunately, we managed to get things back on track within a week.

The project involved several developments and discoveries, going beyond building a product to creating a business framework. This process allowed me to enhance my knowledge of retail and e-commerce, exploring avenues like social selling, live selling, and social commerce along with their marketing channels and marketplaces. I learned about the pricing and crafting of luxury goods, including unique items like a Louis Vuitton pool table that sold for $107,000, and the variability of trade-in values, which can range from 70% to 150%, emphasizing the value of rarity.

In technology, I explored the NFT market and how blockchain currencies integrate with e-commerce platforms. In design, I learned how to convert images into 3D and about the development and integration of 3D motion into systems. Although not a gamer, I recognized the importance of understanding avatars and virtual environments, especially considering the growing immersion of the Alpha Generation in VR/AR, which is critical for development in Web 2.0 environments.

Personally, I was initially disappointed when the project was halted due to a change of heart. The concept was promising, and I was deeply invested in the potential to innovate. Despite this, the team and stakeholders concluded our relations on amicable terms. I maintained communication with the stakeholders, keen to explore any renewed interest in advancing our ideas. However, the rapid shifts in the industry posed significant challenges. Fluctuations in sales and rising inflation instilled a sense of apprehension among the stakeholders regarding further investments.

Throughout this experience, I gained substantial insights into the reseller industry, understanding the intricacies of processes and the regulatory landscape surrounding Web3 and NFTs under the blockchain framework. This project has been a testament to the potential advancements in technology and has prepared me to streamline processes more effectively should a similar opportunity arise in the future.

In my leisure time, I contemplated various concepts, ranging from live shopping on social media platforms like TikTok, to online auctions and marketplaces. However, these ideas were often considered too rudimentary for the ambitious platforms we envisioned. Despite their reliance on traditional technologies and their cautious stance on online expansion, the stakeholders have always been receptive to my proposals, consistently taking my calls and considering future collaborations.

I am grateful for the ongoing dialogue and particularly appreciate their thoughtful gestures during the holidays. It’s a reminder that, although I sometimes become attached to my ideas, the stakeholders recognize the value in our past collaborations and remain open to reconnecting as economic conditions evolve.