During a recent video conference discussing LVMH’s remarkable achievements in 2021, Bernard Arnault, the Chairman and CEO of the company, shared his views on the Metaverse. His statements provided valuable insights into the luxury industry’s perspective on this emerging digital realm.
Although many journalists focused solely on his cautionary comments about being wary of bubbles and the need for caution, Arnault’s nuanced stance on the Metaverse deserves attention. He expressed his disinterest in selling virtual sneakers for a minimal price of 10 euros, indicating that luxury brands prioritize value and exclusivity. This shows Arnault’s astute observation of the internet’s history and the past pitfalls, such as the downfall of e-brands.
Arnault’s stance on the Metaverse is not entirely negative. He recognizes its appeal and potential, stating that it can be convincing, interesting, and even fun. He believes that exploring the applications of the Metaverse and non-fungible tokens (NFTs) will undoubtedly have a positive impact on luxury brand activities if executed well.
For Arnault, luxury has a place in the Web3 era, which encompasses concepts like blockchain, NFTs, and the Metaverse. He outlines three fundamental reasons supporting this belief. Firstly, Web3 aligns with luxury’s core values of ownership, rarity, exclusivity, and speculation, distinguishing itself from its predecessors, Web1 and Web2. Secondly, among younger generations, digital status symbols and displays of wealth have become the norm. They showcase their virtual possessions, like islands on platforms like Sandbox or NFTs from collections like Bored Ape Yacht Club, proudly on their social media profiles. Arnault highlights Louis Vuitton’s appeal to Generation Z as evidence of the changing nature of status symbols.
Arnault acknowledges that gaming and the Metaverse have become influential cultural industries, comparable to music and film. Luxury brands cannot overlook this cultural shift and must adapt to integrate themselves into this new era.
In conclusion, Arnault’s wisdom regarding the Metaverse is commendable. His stance not only highlights the importance of this digital realm but also challenges his long-standing competition, particularly Kering, who have made significant strides in the Metaverse with brands like Balenciaga and Gucci.
Useful links to explore further:
1. Vogue Business – What Fashion Can Learn From the Novelty of the Metaverse
2. CNBC – How Luxury Brands Can Enter the Metaverse
