Louis Vuitton Moët Hennessy (LVMH) is a French company based in Paris and owned by many famous luxury brands. His portfolio includes several dozen items – from Hennessy cognac and Dom Perignon champagne, TAG Heuer and Hublot watches, to Louis Vuitton, Dior and Givenchy clothing and leather goods. Recently, the company’s CEO Bernard Arnault said that LVMH is closely following the NFT and metaverse segment, but is very skeptical. So far, it does not sell virtual products of its brands and watches from the outside how this sector will develop.
But we will not say the same for other players. Last year, another French holding company, Kering SA, tested the oil sector with its Gucci brand. Instead of looking outside, he chose to get involved. Thus, Gucci Roblox introduced 400 digital versions of Dionysus bags on the gaming platform.. Price? Only $ 6 for art. However, when players saw that they could buy a branded bag and use it in the game, they quickly wanted to decorate their avatars accordingly. This is how the boom happened – one player sold Gucci accessories to another, even until a certain person was in a situation. He bought a virtual bag for $ 4,000. It cost more than the original in the real world (more expensive Dionysus models are about $ 2,500).
Gucci released 400 digital bags for the Roblox platform and immediately realized it was a great job. The brand is not yet sure that the digital world will be as profitable as the physical world, in February of this year. Presented a collection of 500 NFT (non-working mark) called “Supergucci”.
The customer received a physical, 8-inch white ceramic figurine, and in addition received a unique digital NFT graphics based on the same figurine – it is already in the digital version.. This combination meant that the items were of great interest on both sides – both by lovers of physical ornaments and by NFT collectors.
Initially, each figure was estimated at about 1.5 ETH (Ethereum). $ 4,900 and all sold out quickly enough. Today we find them on OpenSea.io, the largest NFT trading site. The most expensive of them, Mimesis # 48, costs 67 ETH – 202 thousand. hole. Almost 870 thousand. zloty. Gucci claims that NFT is a real breakthrough in the digital world as proof of lack and ownership.
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“It will make money”
Last year, Twitter founder Jack Dorsey converted his first post to NFT and put it up for auction. Yes its The tweet sold for $ 2.9 million. It was acquired by Sina Estavi, head of Bridge Oracle, a blockchain company. “It’s not just a tweet. I think years from now people will understand the true value of this post. It’s like a picture of the Mona Lisa,” Estavi said.
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Morgan Stanley, one of the world’s largest investment banks, believes that the digital luxury goods market is just beginning to grow. If companies learn to attract a new generation of consumers – people under the age of 20 today, annual digital sales could reach $ 55 billion. Until 2030 This would be one-tenth of all projected revenue for this luxury goods segment.
Immutable Holdings, a holding company that manages several well-known blockchain entities, wants to significantly increase user awareness and accelerate the adoption of digital assets among both retail and institutional investors. His Jordan Fried CEO argues that the high prices of virtual digital goods are justified. – We spend more and more time in the digital world. Young people almost always use smartphones or tablets, he says. – If you can hang works of art and beautiful sculptures on the walls of the office and at home on the highway, it is not surprising that someone in Roblox spends a few thousand dollars on a Gucci bag. game. As you walk through downtown NYC, you want to be noticed and have something to say about your position, your taste, and your place in society. If you use a virtual world for 8 hours a day, you probably want to show others that you are serious about it, and your position is equally important here, he added. So, in the real world, we can buy a Gucci bag for ourselves, in the virtual world – for our avatar. In this way, we somehow transfer our social status to the metaverse.
Limited NFT cost
In the eyes of young consumers, the market for digital clothing and accessories has been operating for years. Players often spend even a few dollars on clothes and accessories for their avatars.or for additional maps and vehicles. This is not to convince young people of the market and explain that digital products have a certain value to them.
But very few people could have predicted that digital goods, especially in the form of NFT, would sell for hundreds of thousands of dollars or even millions. Therefore, brands still do not put 100 percent. At NFT, they are constantly testing the market and combining digital production with physical goods. For example, Cult & Rain, a New York-based sports shoe manufacturer that sells more than 1,100 pairs of real shoes, added a digital version of NFT for 0.5 ETH (about $ 1,600).
So far, it seems that behind NFT sells when there is a popular name, a well-known brand or a combination of digital goods with real objects in the physical world.. A year after receiving Dorsey’s first tweet, Sina Estavi decided to sell him for no reason. Estavi listed NFT on the OpenSea.io platform, hoping to sell it for at least $ 48 million. Commenting on the auction, he added that 50 percent of the funds will be donated to the charity charity GiveDirectly. Effect? The auction included several bids, the highest of which was about 14,000. dollars.
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Convinced that he had sold the Mona Lisa of the Digital World, Estavi raised the price to $ 48 million. then the first week the offers could not even pass a few hundred dollars. “My sales offer was high and not everyone could afford it,” he later told Reuters. – It is also important for me who the buyer is. Maybe I will not sell to anyone, because I do not think everyone deserves this special NFT, he added, adding that he is sure that the auction will be met with great interest. In practice, Estavi did not sell to anyone, but not because he could not find a worthy investor for the Mona Lisa.. There were simply no applicants.