Digital Merchandise Drives Fan Engagement Amid Tariff Volatility

As tariff volatility continues to impact businesses, executives like Ridhima Kahn, vice president of business development at Dapper Labs, are seeing an opportunity for digital markets powered by blockchain to thrive. Kahn noted that many brands are rethinking their revenue and fan engagement strategies, with franchises like the NBA, NFL, and Disney already having years of success with digital collections. This shift is driven by the desire to better understand fandom and engage with a more global fan base.

Digital merchandise, such as tradable highlights and commemorative NFTs, is proving to be a valuable tool for unlocking deeper in-real-life (IRL) fan experiences. For example, the NBA app features tradable highlights like a “LeBron Dunk” or a “Steph Curry 3-Pointer,” while the NFL All Day app has commemorative NFTs tied to game highlights. These digital goods offer a faster, more accessible environment for engagement, especially as fan bases become more globalized and the physical goods market is hampered by tariffs.

Kahn highlighted that the enhanced onramping and offramping technology has made the user experience smoother for those getting started in crypto and digital commodities. This, combined with the positive regulatory environment, is driving adoption and broadening the use case for blockchain beyond just NFTs. As more defined blockchain regulation is established, companies are taking the technology more seriously, boosting confidence in the tech, especially among well-known brands.

IP-backed collections are proving to be successful, with NBA Top Shot ranking among OpenSea’s top-five trending collections for four consecutive weeks. Dapper Labs is actively engaging with fans to understand their behavior and preferences, ensuring that the products they put out to market are well-vetted and meet fan expectations. This real-life research and development (R&D) allows for swift and efficient product improvements, as the end product is digital.

Kahn emphasized that digital collectibles unlock layers of engagement that physical goods cannot. They can be personalized, connected to real-world access, or used to reward loyalty over time. Additionally, digital collectibles are remixable, lightweight, and global from day one. However, Kahn does not believe that the physical goods market will disappear anytime soon. Instead, brands are expanding their playbook to include digital merchandise as a way to engage with fans further.

Kahn believes that the next evolution of fandom is mobile, with fans able to take their most prized possessions with them on their phones. This mobility allows for a more global and engaging fan experience, as fans can trade and interact with others all across the world. Moving forward, Kahn expects brands to continue expanding their playbooks by engaging more with fans in digital spaces, offering utility and value to fans in both digital and physical worlds.