LVMH Considers NFTs, but Not Planning to "Sell Virtual Sneakers for €10 EUR"

If it seems like everyone is getting into NFTs, some are proceeding with caution as LVMH chairman Bernard Arnault wants to enter the metaverse the right way.

The head of the French luxury conglomerate and Europe’s richest man is in no particular rush to capitalize on the latest digital trend, unlike Louis Vuitton’s longstanding rival, Gucci, which has dove deep into the virtual realm, selling $12 USD virtual sneakers and embarking on a partnership with The Sims.

In an annual presentation to investors, Arnault explained his stance on NFTs, saying, “At present, we’re in the real world selling real products. Surely it’s captivating, it’s interesting, it’s fun, but we have to see what the application of the metaverse and these NFTs will be. It could surely have a positive impact on our brands -- if it’s well done, but it’s not our objective to sell virtual sneakers for €10 EUR. We’re not into that. But there may be more relevant applications.”

Looking back on the history of technological innovations, Arnault cited the early aughts internet era, reflecting, “That was a bubble that burst. There were all sorts of things cropping up left, right and center. There were quite a few Facebooks, but only one pulled through.”