Luxury, often known for its appeal, its exclusivity, tradition, its uniqueness, is one of the most promising sectors of Web3.0 and especially with the advent of NFTs.
These digital things have come to create new service experiences for luxury brands to attract a new generation, change, change interactions, risk “violation “in the traditional codes of luxury homes. Faced with the many opportunities that arise in the Web3.0 ecosystem, how can luxury brands reinvent traditional codes, while continuing to share true values? How do you differentiate yourself from other brands and not fall into a mainstream trend with no added value?
NFTs: an obvious popularity of the service in new experiences.
If some luxury homes are still in doubt, many of them are already falling apart. NFT collections, games, metaverse, virtual reality … There is no shortage of use cases. Interesting to observe, beyond the buzz the movement has made since the popular launch of Louis the Game, the game of Louis Vuitton, Sharky B the shark of Burberry or even Guerlain and its NFT drop in favor of biodiversity is strategies adopted. in every luxury home. Keep in mind that NFTs are unique digital objects that open the way to digital assets whose value is in a certificate of reliability and many exclusive advantages.
These strategies are all promising axes for a brand and we can now observe three strategic angles driven by luxury homes. The common denominator is the idea of permitted digital property.
We first observed NFTs that make it possible to enhance a brand’s awareness, by publishing unique digital assets that represent every detail as Lamborghini does, or by offering traceability of physical products such as Breitling with Arianee for example.
NFTs also serve the intrinsic characteristics of luxury. Exclusive, rare, limited edition, neat artistic aspect. Properties we see today in most NFT projects that use the nature of exclusivity and belong to a small community of privileged people to justify the consistently high price of digital properties on offer. for market sale. In this context, the challenge for the luxury world is to succeed in doing good and shift the desire for their products from the physical world to the virtual world. In other words, how can Gucci or Louis Vuitton not be upstage with the new icons of the NFT world that have become Cryptopunks and Bored Ape Yacht Club that all the stars on the planet have become?
At this point, luxury homes have decided to try and learn and no longer wait while observing other sectors. For good reason, more and more brands are making a deeper transformation of their organization by betting on Web3.0 and creating new dedicated business units, this is the case with Balenciaga or Gucci for example. But beyond the bubble, how to make this transition and succeed in developing two worlds to satisfy a diverse audience in an ecosystem with its own codes. A real challenge for brands that needs to find the balance between their historical identity and the discourse they will implement in the metaverse to conquer new audiences and start their existing community on an adventure. ahead of ‘innovation.
Between innovation and reliability, luxury brands need to find the right balance to sustain themselves in this ecosystem.
Luxury homes understand this very well: at this time, the turn to Web3 must be taken, if possible first in other sectors, to take advantage of the opportunities offered by this new ecosystem. However, it is not enough to simply launch and issue an initial drop of NFT, such a strategy has been demonstrated and established in relation to its overall strategy. Because taking advantage of digital and opening Pandora’s box on Web3 doesn’t mean copying in the digital world what is in the real world, but creating new exclusive experiences for the more selective clients who look forward to sensations.
Even if many luxury gamers are pioneering, there is still a long way to go to invent real experiences and take advantage of everything Web3 has to offer, not only on the surface but also in the processes and everything around it. and marketing, as well as business models and the supply chain. To do this, the players who manage to differentiate themselves are the ones who build long-term strategies, both to give themselves time to try and improve their experiences, but also to gradually develop. progress according to the evolution of the market even more so. young. Finally, Web3 and above all NFTs are not an end but a way to meet new challenges and a new population while building loyalty and making regular customers dream. .
In short, traditional luxury codes have found their peak in the metaverse, bringing surreal experiences forward, and the power to invent and offer a true digitally printed experience in codes. in luxury. Finally, Web3, through metaverses in particular, is an opportunity for the luxury industry to invent or re-invent sector codes in the digital world. A challenge that is not always successful in the so-called Web 2.0 as we know it today. Industry luxury brands that can provide “luxury” digital experiences will gain a significant competitive advantage as this new ecosystem grows.
The future of luxury homes will thus be played out in their ability to take the turn of Web3 by adopting specific codes in this ecosystem, while combining the history and identity of their brand. And, this, to maintain a real and unique service position in a seamless and determined new customer experience.
Karen Jouve is a Web3 expert, CEO and co-founder of Doors3.