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Kering chairman François-Henri Pinault says the luxury business is ready and eager to experiment in the metaverse, while Gucci, one of the group’s core digital innovators, has seen growth revive after two years of underperformance.
While LVMH CEO Bernard Arnault has expressed concern about a metaverse “bubble,” Kering CEO Bernard Pinault has moved forward. “Is this something that will happen? It’s too soon to tell. We’re quite active. We’ll see if it’s warranted afterwards. It’s more of a group philosophy of invention that motivates us to operate in this manner “At a news conference on Thursday, he stated. In the art world, he added, this is already a reality.
“Will it expand into a universe in a larger economic context? I believe that will occur. It will be both a source of opportunity and a source of disruption.”
The luxury business has three types of metaverse prospects, according to Pinault. First, there are NFTs that are tied to tangible products. Second, there are virtual goods. Third, smart contracts that might enable Kering’s brands, for example, benefit from secondary markets. “Renting out a virtual asset is a completely novel concept. When you sell a product today, the company receives nothing. However, we own the intellectual property rights to the physical product’s creation. Because there is a smart contract attached, a portion of the resale will go to the brand the next day.”
However, due of the early days’ instability, he remains wary. “With Gucci we launched an NFT”. In my Metamask portfolio, I have one.Valuation was at $50,000 one hour after it was launched. It is currently valued at around $4,000. That is why you must exercise caution before launching, but something is taking place.”
Pinault is also concerned about other uncertainty, such as the acceptability of crypto-currencies. “One of the ramifications of Web 3.0 is that people will own their data,” he explained. “If Web-3 becomes the prevailing reality, this will destabilize CRM and, by extension, e-commerce.” If virtual reality and augmented reality become a reality on a wide scale, they will change the way websites are designed.