Blockchain, NFT, Metaverse… LVMH Conquer the Internet 3.0

The “Aura” consortium created by LVMH that brings together Prada, Cartier and the OTB Group continues to put its pawns in “Web3”. The blockchain product authentication solution announced at the end of last month that it was integrating a solution developed by diamond company Sarine Technologies. Target ? Ensuring authenticity and respect for ethical principles in diamond design, through their traceability throughout the supply chain.

Because LVMH and its major competitors decided, in April 2021, to join forces in order to make the most of Blockchain technologies. Since then, the Aura Consortium Blockchain has created digital identity for nearly ten million luxury products, primarily Non-Fungible Code (NFT). But how do we explain the reasons for this shift towards Internet 3.0, the world leader in luxury? Why is Bernard Arnault Group, famous for its champagne and fine leather goods, so interested in Blockchain and NFT?

We offer customers new guarantees of quality and new experiences

LVMH and its partners first want to take advantage of the commercial guarantees offered by Blockchain technologies. In a sector plagued by counterfeiting, Blockchain allows brands to boost their credibility by certifying the authenticity of their products. For example, Prada decided to list all of its products on the Aura platform by providing them with NFC and Radio Identification (RFID) technologies.

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The blockchain also serves the market for the resale of luxury items – whose brands now incorporate entirely utopian logic – by allowing customers to access a database that lists all the information on the maintenance of the items they acquire. This is particularly Cartier’s choice when it comes to watches and jewelry.

Additionally, brands investing in Aura intend to attract new audiences sensitive to “3.0” technologies, both young and connected. It is a tool capable of “Generating new revenue through the effect of gravity”, explained recently the CEO of the Italian group OTB, owner of the brands Diesel, Maison Margiela and Marni. Aura, for example, has developed a solution that allows brands Give gifts to their customers in the form of NFTs, which are perfect copies, in digital form, of physical products”Daniela Ott, the consortium’s general secretary, said last month.

Last but not least, the luxury giants appear to be betting, not without risk, on investing heavily in a sector undergoing rapid industrialization. target object finally To gain a competitive advantage when in the future the blockchain has reached maturity in the business world.

Metaverse luxury, between promises and doubts

In its “Web3” strategy, LVMH is also exploring the possibilities offered by the Metaverse. And this, “with great caution,” recently announced the chief financial officer of the French group, Jean-Jacques Guionni.

By investing in the Metaverse, it is above all about brands to improve profiles Storytelling By immersing customers in a virtual experience that is able to build loyalty. According to several sources, LVMH will work in particular on virtual tours of leather goods workshops, as well as on digital fashion shows during which it will be possible to obtain NFTs in preview. The French group also plans to quickly recruit within it the “Director of NFT and Metaverse,” who last month entrusted Forbes’ director of information services, Franck Le Moyal.

However, for now, luxury giants are investing in the Metaverse in moderation, eager to patiently explore a world with murky schemes, and to guard against financial catastrophes associated with a potential speculative bubble bursting. Without denying the opportunities presented by the Metaverse, the head of LVMH, Bernard Arnault, did not fail to stress the risks, recalling the bursting of the Internet bubble at the beginning of the 2000s. To underscore this even now, LVMH above all is very present … “in the real world”.

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