What is the interest of the luxury world in investing in NFTs?

The craze for NFTs (non-fungible tokens) is very real despite doubts and preconceived ideas about the prospect of a dematerialized world. The digital demand should nevertheless grow significantly for fashion and luxury brands and thus generate revenue that goes beyond $ 50 billion by 2030 for the sector, according to Morgan Stanley. Luxury brands have therefore understood this and are now increasingly tempted by the use of these famous non-fungible tokens. Between Gucci succeeding in selling virtual sneakers, Guerlain launching its NFT for a charity, or even Hermès revealing virtual bags under the name “MetaBirkin”, Metaverse seems to be a new promised land where opportunities to redefine the meaning of the word luxury seems infinite.

NFTs: major assets for brands

This new technology offers sellers and buyers many benefits … Stored on blockchain, NFTs allow brands to offer a new ultra-personalized customer experience that excellently combines the phenomenon of rarity and discretion. In fact, these digital tokens are, above all, unique, traceable and non-copyable.

Unsurpassed authentication

Luxury players who place great emphasis on the authenticity of their products now seem to particularly appreciate the use of “non-fungible tokens”. Issued at the same time as a physical object, NFTs are actually subject to a non-copyable digital authentication certificate. In a way, it is the ideal guarantee that a product is authentic, in a market wherewhere the second hand rumblesand where the excesses associated with counterfeiting abound. Thereby, NFTs would avoid the phenomenonènot fakeand would offer exemplary traceability throughout the life of the object or work in question, despite sale and resale.

A tool to target new users

Some luxury brands use NFTs to target new customers. In August last year, for example, Louis Vuitton unveiled a video game titled “Louis, the game”, Where an avatar went in search of 200 candles, as a tribute to the anniversary of the iconic house. Among them were 30 lights in NFT format.

In parallel, it is under the next edition of Viva technology which takes place in Paris from 15 to 18 June 2022, that LVMH’s muse 2.0 will be officially presented. A virtual ambassador who works straight out of a video game and who will no doubt pique the curiosity of new consumer profiles.

Art, a market strongly influenced by the use of NFTs

On the art market side, NFTs also provide galleries and artists with the opportunity to reach new audiences. But not only that, they also allow galleries to sell digital works in the safest way possible and allow certain artists to explore new horizons.

In France, many art galleries have already embarked on this adventure: for example, there is Almine Rech on the Nifty Gateway, Kamel Mennour on the SuperRare platform, or more recently, the Parisian gallery Bigaignon with artist Thomas Paquet with the Danae.io agency.

An option contrary to traditional players?

Not necessarily: The proof that the photography foundation Roger-Viollet, which opened its doors in Paris in 1938, was tempted for the first time by the adventures of the NFTs by proposing the artist 13 Bis de sell his physical works also in NFT format in cooperation with the agency danae.io.

Never seen ! This is actually the first time that a street art artist, represented by a historical photographic foundation, is launching a sale of works in NFT format. Thus, the “drop” of these virtual works took place on May 18 on Danae.io, which sells these NFTs made in collaboration with the artist. Rachel Chicheportiche, president of Danae.io, a cultural engineering firm based on NFTs based in Paris and New York, describes her tool as a new “brush” for artists looking to embark on the adventure.

It is an enriching new perspective that opens up for artists who want to experiment with creative skill (e.g. thanks to motion design) while appealing to a wider audience, with the assurance of safety and flawless traceability.

Create a new community

Finally, through the use of NFTs, brands would seek to build new virtual communities, because just like buying a physical object, virtual tokens also allow their buyer to claim possible membership in a group or community. ..

But before they get started, players in the luxury or art market have every interest in surrounding themselves with experts in the field … Fanny Lakoubay, founder of LAL ArtCurator of Digital Art and NFT Project Advisor, emphasizes that “It is always an ecosystemdifficult to understand and navigate, où mistakes are easy to make without the right advice”.

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