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Redefining brand engagement: Innovations driving Southeast Asia’s digital economy

Southeast Asia’s digital economy is projected to surpass $600 billion in gross merchandise value by 2030, according to figures cited by the World Economic Forum. This highlights how certain innovations and policies can drive the region toward tremendous growth beyond the trillion-dollar mark.

Innovations like Web3, immersive technologies, and artificial intelligence are among the drivers of this change, and these will transform how brands engage consumers across the region. Such technologies now see use cases involving personalised, immersive, and user-driven experiences.

From digital collectibles to decentralised decision-making, brands are no longer limited to traditional means of ensuring customer loyalty.

Redefining ownership with digital collectibles

Non-fungible tokens (NFTs) and digital collectibles are reshaping how brands offer personalised experiences to their customers. In the context of Web3, these digital assets provide a new form of ownership that extends beyond physical goods, creating exclusive and immersive experiences for consumers both in the digital and potentially in the physical world.

A brand could issue NFTs as part of a new product launch, allowing consumers access to exclusive content, early product releases, or VIP events. These digital assets can be traded or collected, creating a new layer of engagement where consumers are not just passive buyers but active participants in the brand’s digital ecosystem.

Brands across Southeast Asia, including global giants like Nike, have already started to integrate NFTs into their customer engagement strategies. Its .SWOOSH platform allows members to collect and trade digital assets such as virtual shoes or jerseys. It goes further in terms of engagement, enabling NFTs’ owners to co-create these virtual goods and even earn royalties from these products.

Immersive engagement opportunities for brands

Augmented Reality (AR) and Virtual Reality (VR) also present new opportunities for brands to create immersive, interactive experiences that engage tech-savvy consumers.

For example, beauty brand L’Oréal in Singapore has successfully integrated AR with their virtual makeup tool, allowing customers to see how different products look before purchasing. This “try-before-you-buy” approach increases customer confidence in their purchase decisions and enhances the overall shopping experience by making it more engaging and interactive.

Also Read: How to scale voluntary carbon markets with DeFi and Web3

Virtual influencers are also gaining popularity in Southeast Asia, offering brands a unique way to connect with audiences. Anime live streamers, also known as vtubers, are next-generation influencers portraying as characters that have para-social interactions with their viewers and allow brands to create new targeted and interactive marketing campaigns. Some of these examples include Gawr Gura with more than 4.51 million YouTube subscribers, Hoshou Marine with over 3.43 million YouTube subscribers, and Ironmouse with 2.1 million Twitch followers.

Memecoins moving beyond novelty

Memecoins, once seen as humorous and highly speculative digital assets, have increasingly become one of the most flexible and profitable areas in the crypto industry. Despite their light-hearted beginnings, memecoins have grown in potential in terms of trading and other use cases as well.

In 2024, top-performing memecoins saw average returns exceeding 1,300%, driving market interest beyond their initial novelty. These digital currencies reached a US$60 billion market in Q1, with trading activity on decentralised exchanges (DEXs) reaching record highs.

While memecoins have been dismissed for being mostly speculative, the appeal lies in their community-driven, viral nature, such as the recent Moo Deng memecoin based on the same baby hippo that went viral on social media. It reached an all-time high market capitalisation of over US$300 million shortly after its launch on the Solana blockchain.

Also Read: Global Web3 companies on why Asia Pacific is the future of the industry

Beyond speculation, memecoins are now beginning to find more utility within the Bitcoin ecosystem. Thanks to advancements like the Taproot upgrade and the Runes protocol, Bitcoin now has the infrastructure to support more use cases, including minting and trading of memecoins.

These innovations allow Bitcoin to compete with Ethereum’s smart contract functionality while benefiting from its renowned network security. This means that memecoins can be integrated into areas such as Web3 gaming, where they serve as community-driven in-game currencies, a mechanism for player rewards, and also a means of decentralised governance.

One platform leveraging this potential is DeFi.Gold, a decentralised exchange and launchpad built on the Bitcoin blockchain. It pioneers the use of Runes-based tokens, such as its Schmeckle and Flurbo memecoins, utilised as in-game currency and a governance tool for a new Web3 gaming project.

As a DEX and launchpad, the platform provides the infrastructure for trading decentralised assets on the Bitcoin ecosystem, including memecoins, fungible tokens, and other digital assets. Earlier this month, DeFi.Gold secured US$2.2 million in seed funding from investors including Brian Rose, Walid Benothman, Mario Nawfal, and Cypher Capital, among others.

Additionally, Pump.fun, a memecoin-focused platform that generated $100 million in fees, highlights the growing demand for new meme token launches where anyone can participate. This success underscores the potential for these platforms to capture similar momentum in the expanding Bitcoin ecosystem.

Customer engagement is evolving faster than ever

Technology is redefining how brands engage with consumers, allowing for more personalised, immersive, and interactive experiences that go beyond traditional brand-customer interactions. From NFTs that create digital ownership to memecoins that are shaping new financial and governance ecosystems, brands now have powerful tools to engage tech-savvy audiences in more meaningful ways.

As Southeast Asia’s digital economy continues to grow, brands that embrace these technologies can create a dynamic and immersive consumer experience that resonates with a generation increasingly driven by digital connections and personalisation.

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