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Although individual brands are already exploring Metaverse and NFTs, the LVMH CEO warned that the company needs to be “wary of bubbles.”
French Luxury goods company LVMH is about to join the Metaverse community as the company hinted at possible consideration. While announcing the latest earnings call, the chief financial officer at LVMH, Jacques Guiony, revealed that the company is “carefully” looking at venturing into the metaverse and blockchain gaming. The luxury goods company is home to top brands like Fendi, Christian Dior, Givenchy, and more. With a solid position across different sectors, the debut of LVMH into the Metaverse and blockchain gaming is going to be highly significant.
LVMH Is Looking at the Metaverse ‘Very Carefully’
Before Guiony mentioned the possibility for LVMH to enter into the Metaverse space, some of the companies under the luxurious company had already explored the crypto, NFTs, and gaming industries. For instance, Louis Vuitton has an independent mobile game that allows players to earn NFTs. After players collect a specific number of free NFTs, it will enable them to qualify for an NFT raffle. According to one of the postcards in the game, the raffle will run until the 4th of August- Louis Vuitton’s birthday. Also, LVMH stated that the agreement between crypto-asset firm Ledger and Hublot had seen increased demand.
Furthermore, LVMH-owned specialty retail company Tiffany & Co. executive Alexandre Arnault has also transformed its CryptoPunk NFT into jewelry. Arnault revealed in a tweet that the CryptoPunk NFT #3167 is now jewelry. Data compiled by popular NFT marketplace OpenSea also showed Tiffany acquired an NFT worth 115 ETH in March. Acknowledging the growing adoption of NFTs and optimistic about its future, Tiffany said:
“The evolution of fine art collecting is here and the future is bright with NFTs.”
LVMH’s Executives Warn on Metaverse Consideration
Although individual brands are already exploring Metaverse and NFTs, the LVMH CEO warned that the company needs to be “wary of bubbles.” Similarly, the chief financial officer noted that the Metaverse space is still in its developing stage. During the earnings call, Guiony said that it is difficult to comment on how the metaverse would impact the company. However, he referred to the industry as “interesting” and “promising.” He continued:
“I think I would make a fool of myself if I tell you exactly what we have in mind and that [the metaverse] is very clear and that we know exactly what we will be doing in the future. There are many initiatives that could possibly lead to business developments […] rest assured that whatever happens, we will be a part of it. But for the time being, whatever happens is unknown to us.”
LVMH performed excellently in the first quarter, with a 29% growth year-over-year in revenue. The increase came from all of its sectors, except its wine and spirits division. Moving on, the luxurious company did not share financial guidance for the concluding quarters of the year.