What NFT, Metaverse and Luxury have in common – WWD

PARIS – If you still do not understand NFTs and exactly what luxury brands do with them, Ian Rogers has a simple explanation for you – it’s all about connectivity.

“Try it, have a value exchange with an artist and see how it feels,” he said, comparing digital assets to the pricing of luxury leather goods. “Those who do it understand it, they feel it. They feel close to the mark. And that’s where this is. This is a very similar thing and it’s emotional.”

“Luxury and NFT are the same thing – they are both about scarcity, community and creativity,” he added.

There was consensus from the panel including Rogers, Ledger’s Chief Experience Officer, on stage with Franck Le Moal, IT and Technology Director at LVMH Moët Hennessy Louis Vuitton, and Gucci’s Executive Director Nicolas Oudinot during the “How Tech Is Transforming the Customer Journey” panel at WWD’s Metaverse Symposium held in Paris on 28 June.

Rogers, who previously worked as digital manager at LVMH, said that we are in the middle of a generational change, with the current cohort of 15- to 20-year-olds growing up and playing immersive games – the forerunner of Web3 – who want a completely different definition of value that is not focused on old-fashioned craftsmanship.

Just as we currently use the term “digital natives”, it will be “Web3 natives” in 20 years. Even though it is a decade-long shift, the technology to get there will be fast, the panelists agreed, and the brands must put in the effort now.

However, Rogers warned against the “if you build it they will” mentality of jumping into the metaverse just because it’s the next big thing. It is crucial for brands to understand their customer base and build small, differentiated communities around art or sports that will engage consumers.

LVMH has followed such a “cautious” strategy, said Le Moal. It’s not just NFTs for LVMH – the group considers the meta-verse as “a global framework” that includes augmented reality, virtual reality, blockchain technology, crypto and virtual products.

This is one of the main problems that plagues the discussion about digital assets – everyone seems to talk about different things when they say “Web3” or “metaverse.”

The symposium took place just when the cryptocurrency values ​​crashed – Bitcoin lost more than 38 percent of its value in June alone. Panelists compared the currencies to a “roller coaster”.

“But this is the trip we’re going to be on for the next 10 years or so,” Rogers said.

However, committing to crypto is a “completely critical” long-term strategy, Le Moal added. He predicted government regulators will soon enter and that established players are about to enter the game as well. “In two years we will see it as a battle between Ali[baba], Facebook and the guys. I think it will change the story a bit for the end customer and for the brand, he said.

Oudinot added that the technology is moving very fast, driven by top engineers and talents who choose Web3 start-ups instead of large companies like Google and Facebook’s parent company Meta, which will accelerate the use of currencies and asset acquisition “fairly quickly.”

The trio agreed that the brands’ tasks are ultimately twofold. First, brands need to create products that allow NFT owners to showcase their digital assets to other enthusiasts, which increases their value, because ultimately it’s about selling the idea of ​​belonging to a tribe and creating your personality through acquisitions. One way is to let people show their Gucci NFT art as a profile picture on social media, Oudinot said, while Le Moal quoted Bulgaria’s Octo Finissimo watch showing verified digital art.

Second, brands should associate NFTs with physical products or personal events. “Everything has to do with this concept of having a digital twin with a real product,” Le Moal added. “We believe that in the end, the value will come from the connection between digital and physical.”

Both Oudinot and Rogers took up the recent NFT.NYC conference in New York City, where many brands also organized IRL experiences. Gucci hosted a private event for NFT holders.

“At the same conference, I could hear speeches saying that it is the end of physical product,” Oudinot said. “But when we host an event, they all knock on the door … I think it’s just going to be complementary and create more stickiness between the brand experience and the consumer.”

Brands could sell the rights to their most exclusive products via NFTs, with the physical goods the brand holds, to be redeemed later, Rogers added, comparing it to collecting paintings: “When you take your products and put them into an always on., 100 percent liquid global market where things can change hands and there is no need for an authenticity check and there is no risk of it being damaged, it is massive and transformative. “