“Aura”, the consortium initiated by LVMH and which brings together Prada, Cartier and OTB Group, continues to put its pawns on “Web3”. This blockchain product authentication solution announced late last month that it was integrating the solution developed by diamond company Sarine Technologies. The goal? Ensure the authenticity and respect of ethical principles in the design of your diamonds, through their traceability along the supply chain.
Because LVMH and its main competitors decided, in April 2021, to join forces to make the most of Blockchain technologies. Since then, Aura Consortium Blockchain has created a digital identity for nearly ten million luxury products, mainly Non-expendable tab (NFT). But how to explain the reasons for this turn to Internet 3.0 of the world leader in luxury? Why is Bernard Arnault’s group, best known for its high-end champagnes and leather goods, so interested in Blockchain and NFT?
Offer customers new quality guarantees and new experiences
LVMH and its partners want to benefit first from the commercial guarantees offered by Blockchain technologies. In an industry plagued by counterfeits, Blockchain allows brands to improve their credibility by certifying the authenticity of their products. For example, Prada has decided to list all its products on the Aura platform by equipping them with NFC and radio identification (RFID) technologies.
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The blockchain also serves the market for the resale of luxury goods – whose brands now have a fully integrated virtuous logic – allowing customers to access a database that collects all the information related to the maintenance of the objects. which they acquire. This is especially Cartier’s choice for his watches and jewelry.
In addition, the brands that invest in Aura aim to attract new audiences sensitive to “3.0” technologies, young and connected. It is a capable tool “generate new revenue through the attractive effect”, recently explained 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 they offer their customers gifts in the form of NFT, which are perfect reproductions, in digital format, of physical products ”said Daniela Ott, the consortium’s secretary general, last month.
Last but not least, the luxury giants seem to be betting, not without risk, on investing heavily in a rapidly industrializing sector. Being objective in short enjoy a competitive advantage when in the future, the Blockchain has reached maturity in the business world.
The Metavers of luxury, between promises and uncertainties
In its “Web3” strategy, LVMH is also exploring the possibilities offered by Metaverse. And this, “very carefully”, recently declared the financial director of the French group, Jean-Jacques Guiony.
By investing in Metaverse, it is mostly a matter for brands to improve theirs narration immersing customers in a virtual experience capable of loyalty. According to various sources, LVMH would work especially on virtual tours of its leather goods workshops, as well as on digital fashion shows during which NFT can be purchased in preview. The French group also plans to quickly hire an “NFT and Metaverse manager” within it, its director of information services told Forbes magazine Franck Le Moal last month.
For now, however, the luxury giants are investing in Metavers in moderation, eager both to patiently explore a world with vague outlines and to protect themselves from the financial disasters linked to the outbreak of a possible speculative bubble. Without denying the opportunities offered by Metaverse, the head of LVMH, Bernard Arnault, did not fail to emphasize the risks, recalling the bursting of the Internet bubble in early 2000. And to emphasize that so far, LVMH is above all very present … “in the real world”.