A new meeting place for the luxury and tech sphere, the Journal du Luxe 3.0 deciphers the news and major trends in a booming sector every two weeks. Focus on the live of June 16 with the report of the NFT NYC, a summary of the new Bain and Altagamma report, the launch of luxury brands in Web3 and the latest metaverse campaigns, all completed by the exclusive interventions of Joël Hazan ( BCG), Olivier Rivard-Cohen (Cacio e pepe), Sylvain Delteil (Perfect) and Nicolas Rebet (Retailoscope).
Economic resilience of luxury and optimistic outlook around Web3.
Bain & Company and Altagamma recently released a study on the global luxury market, its trends and future prospects. The take-home message is none other than the exceptional economic resilience of luxury in 2022 with forecast growth of between 5 and 15%. Among the new ways of luxury, we find luxury 3.0 – with growth by 2030 estimated at +5 to +10% in the Web3 sphere alone – and digital assets with a fairly strong influence of gaming and the metaverse. .
The live also focused on a second study dedicated to the expectations of women in the metaverse. An extremely strong educational need emerges with, at the forefront of uses, socialization since 43% of women aged 18 to 24 want to connect and socialize.
Finally, back to a debate that has ignited the web in recent days around the announcements of Meta and its avatars designed with certain luxury houses. The Web3 community was quick to react to point out a lack of uniqueness and interoperability, an overly marked style, a visual too close to reality and above all, basically, the debate between decentralization and centralization which is central to the development of metaverses.
Despite a drop in the crypto market, luxury and Web3 continue to write their history.
Some brands show originality in this extension of reality. Evidenced by the smart ring of Gucci and Oura that allows you to better understand and express yourself through an application combining well-being and health.
As for NFTs, the unmissable event of the last few days was the NFT NYC, a veritable Superbowl of digital coins. Despite a drop in the market in volume, the enthusiasm of brands and investors seems to be continuing. A few points to remember from the main lessons delivered during this event:
- Security is the key, the watchword of the keynote given by Ledger, the market-leading French unicorn.
- Utility is the key word and the phygital predominates.
- Web2.5: wouldn’t it be interesting to take the best of both worlds?
- The war of tools creates confusion for brands that do not know where to turn.
- The metaverse is truly the buzzword of the year.
- Augmented reality is one of the vectors for the adoption of Web3 in virtual fashion.
With the fall in the price of cryptocurrencies, Web3 has observed a rise in the search for meaning and “purpose”. This is also the purpose of the arrival, on July 12, of NFTs produced by actor Bill Murray. Finally, the appointment of Pharrell Williams as Chief Brand Officer of the Doodles collection says a little more about the interest of artists and celebrities in Web3.
Luxury continues its rise in the Web3 universe with two new launches. On the one hand, Bentley, a famous luxury car brand which is launching its unique collection of 208 NFTs on Polygon, the number of which corresponds to the maximum speed of the Bentley continental GT. On the other, The Manufacturer and World of Women who join forces to build a more ethical Web3 through a collection of digital Fashion.
No one escapes this: the volume of NFT marketplaces is at an all-time low. What should be remembered is that despite this situation, many collections continue to be launched, but the All Time High has given way to longer-term strategies. Maybe a good sign for mass adoption?
Finally, Kering is continuing its rise in Web3 by investing $1.5 billion in the Haun Ventures fund launched in March. Hublot, for its part, and after the first announcements of the past weeks, is forging a partnership with Bitpay to accept payments in cryptocurrency.
Regarding Discord, NFT God gives us an interesting reflection on the potential of Discord to weaken non-fungible token projects. While all NFTs initiatives are now launching on this social network, isn’t it also distracting its own communities?
In blockchain news, Vertu was in the spotlight, the brand that began its journey in the 2000s to redefine luxury in mobile telephony. The house returns to the forefront by offering a new phone model, called “Privacy is the new luxury”, only accessible via the purchase of NFT and in partnership with Binance.
“No Web3 project without gaming skills” pointed out Eric Briones. This is the lesson learned from the launch of Gucci Gaming Academy with Face IT, around the mental health of the youngest, but also the arrival of Gucci Vault and the Super Rare platform. It’s a completely immersive NFT exhibition where storytelling is more than important.
In conclusion to the headline news, Salvatore Ferragamo has just launched a new boutique in New York with a range of made-to-measure sneakers.
The interview of luxury 3.0 strategists.
Sylvain Delteil – Beauty Tech: fundamentals and lessons for luxury.
Sylvain Delteil, Business Development Manager of Perfect Corp returned to the fundamentals and lessons of beauty tech for luxury since 2013.
“The questions we face today are relatively the same as those we experienced a few years ago in the world of cosmetics” he explained.
A few highlights should be noted from 2013 to today: massive investments in technology, data and customer engagement issues, the advent of smartphones, omnichannel issues, the growing use of communication tools. ‘AR/VR just before taking the Web3 turn.
Google launched its Virtual Try On service in 2021.”How can a luxury company manage its e-commerce site, its shops, its social networks… Here we come to omnichannel issues”.
Many questions then arise with the arrival of these technologies and NFTs on the identity of its brand in the digital universe, the actors with whom to start and the objectives to pursue.
Joël Hazan – The deciphered analysis of luxury 3.0.
“The Luxe 3.0 is a broader concept than just the Web3 application. It’s about communities and knowledge” said Joël Hazan, Managing Director and partner of the international strategy consulting firm Boston Consulting Group.
Joël Hazan raised awareness on the fact that brands must reveal their community and create the legitimacy for them to participate in these communities. He revealed that communities have a lot of expectations and therefore need to offer knowledge, culture and go beyond the product. Finally, he stressed how important it is for luxury brands to provide a culture and the possibility of interaction, the opportunity to be a financial shareholder but also a “creative” shareholder.
“People who are active in NFTs are active for the investment and financial opportunity it represents. But, at 60% they value the community and utilitarian aspect.”
RTFKT is in this a unique phenomenon which, in 6 months of operation, has collected 1.5 billion dollars in total sales while the brand decides to keep only 300 million for itself. Everything else is left to the community as value creation. This is one of the lessons of the Web3 philosophy. The creation of value is impressive and the member of a community contributes to the latter. The protagonists of the virtual world were able to observe the birth of a fashion brand pure Web3 player through RTFKT.
According to the expert, several aspects of Web3 are important to consider: control of the value chain, the issuer’s ability to capture royalties on secondary sales to create value, the brand’s ability to create and engaging communities, immersion…
The figure to remember from the BCG study is 65%: this is the proportion of NFT holders who prefer to hold a “blue chip” NFT rather than an emblematic luxury brand item (a Chanel bag for example) . However, out of the entire general population, only 5% prefer NFT to luxury item. This therefore demonstrates enormous potential for brands but a real need for education for the public.
Olivier Rivard-Cohen – Web3 business models.
Olivier Rivard-Cohen, founder of the creative agency Cacio e Pepe, deciphered, in the introduction to his remarks, the economic model of Web3 and those to come.
“Abundance is the foundation of brands’ business models. Today, with the adoption of the Web3 philosophy, we can give weight to an object but also to the user”.
The economic model is at the center of the retail revival. Manufacturers at the heart of the fashion industry have things to invent around the Digital Twin and are undoubtedly the next strong point for luxury houses. “The challenge beyond even an economic model is how I engage and embrace these new players and consumers”. Olivier finalized his speech with the posture that is both avant-garde and reasoned that luxury brands must have by questioning themselves above all about their role and what they wish to convey in this new universe.
Nicolas Rebet – Metaverses, revenge for physical retail and boutiques?
Nicolas Rebet, founder of Retailoscope, discussed the recent launches of Gucci Vault and the Printemps Virtual Store, when the transition from physical to e-commerce has not always been easy.
“How can we transfer a store where we can make real purchases on the Web3?”. Luxury brands have the ability to stage in a different way and to script their products, to transfer more emotion. “We will have to create seller avatars to create interaction”. There are still many challenges in the ability to exchange between avatars, to transfer the physical relationship to Web3.
See you on July 14 at 11:30 a.m. for a new special edition. Until then, the live Journal du Luxe 3.0 can be watched or re-watched here: