Unlike some other big brands that are embracing the metaverse with open arms and doing everything they can to be part of the augmented and virtual new world, LVMH CEO Bernard Arnault is taking a more cautious approach, saying the company needs to tread lightly before entering Web 3.0, according to a transcript of a fourth quarter 2021 earnings call.
Arnault said he sees the metaverse as a potential business opportunity for LVMH, but cautions “we … have to be wary of bubbles,” per the transcript.
“[W]e are very much in a down-to-earth world,” he said. “We want real product selling for real … we are not interested in selling a pair of virtual sneakers for 10 euros.”
“At the beginning of the internet … there were all sorts of things cropping up … And that was a bubble that burst,” he added.
Arnault said there could be relevant applications, but it will take time to see if they could be profitable, according to the transcript. Still, he said he looks at the metaverse as “thought-provoking.”
LVMH Moët Hennessy Louis Vuitton is a founding member of the Aura Blockchain Consortium, a private, permissioned blockchain on Ethereum designed to provide proof of provenance. It allows consumers to trace the history of their LV-logoed bag — or Hublot watch, Prada gown and Bulgari perfume.
Read more: Luxury Brands Louis Vuitton, Prada, Cartier Team to Track Provenance on a Blockchain
The blockchain, which was announced in April, went live Jan. 13, with founding members LVMH, Prada Group, Cartier, part of Richemont, and OTB Group working together in a “private permission-based blockchain platform which offers both up-stream and down-stream traceability in the supply chain.”
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