Luxury watch brands are wondering if the fast-growing market for virtual products created by the rise of NFTs and the early stages of the Metaverse is a real opportunity or a real headache.
For opportunists, early entry into the Metaverse, a permanent, parallel reality created by stitching together virtual worlds where users can buy and “wear” digital products, is a long-term competitive advantage. May bring. After all, the luxury watch and NFT markets are both rooted in a culture of collection.
But Metaverse also challenges the core philosophy behind the sector’s largest business. In short, mechanics and craftsmanship have profound implications and long-term value. In addition, the shapeless, unregulated Metaverse is a virtual wild waist for a carefully crafted reputation.
No matter what the calculus, few people ignore this phenomenon.
In January, LVMH Chairman Bernard Arnault said in a statement to the company that Metaverse would bring business opportunities, but said the group wasn’t in a hurry to “sell virtual sneakers for € 10”. Aroused.
Watchmakers have begun to reach out into space. Last year, Jacob & Co. Became the first high-end brand to sell a digital version of one of its watches, the NFT SF24 Tourbillon, at auction for $ 100,000. In February, Louis Moinet manufactures hundreds of physical watches annually, offering the first NFT collection of 1,000 unique pieces that were released last month and are said to have sold out in seven minutes.
However, many remain in closed rooms. In January, Stephane Bianchi, head of LVMH’s watch and jewelery division, confirmed that his stable brands, including Bulgari, Hublot and TAG Heuer, are experimenting with this technology. “At the end of the day, we should and will be part of it,” he told The New York Times in January.
TAG Heuer CEO Frederick Arnaud confirms that the brand is exploring space, and Bulgari CEO Jean Christoph Babin has great potential for NFTs and the Metaverse. Said there is. “The Metaverse is a magnifying glass of the real world and can take us to a dreamland like Alice in Wonderland,” Babin said. “This creates great value.”
But the Metaverse also opens up a world of legal controversy. In January, Hermès sued Mason Rothschild in his “Meta Birkin” NFT, alleging trademark infringement. It will be interesting to see what happens to Generative Watches, a collection of 1,000 NFTs designed by the two biggest Swiss watchmakers.
It is not yet known how Rolex makes the founder Jesus Calderon’s “Rødex Bitmariner”, swiping the design of the Superbrand’s signature Submariner. Meanwhile, Calderon told watch website Hodinkee earlier this year that he sold 68 virtual watches for about $ 700 each, and the watches he handed out entered the secondary market for $ 20,000.
So far, brands have more questions than answers.
Creating a NFT for a watch is relatively cheap and easy because the actual watch is designed using 3D software. But how do you set the right amount and retail price? “The laws of the Metaverse are very similar to the real world,” Babin said. “Making some costs a lot. If you make a lot, they cost very little. But it’s hard to say whether the price should be higher or lower than the actual price. am.”
The Swiss watch industry is still very conservative in all of its cultural implications, and many brands are expected to avoid the Metaverse. “Swiss brands will be worried about recognition and will really be late for the party,” said William Rohr, a former managing director of the Watch Forum Time Zone and founder of the watch brand Massena LAB.
“But if they decide to invest, big guns like Rolex will invest on a large scale and try to occupy as much space as possible, as the rest of the industry will continue like a herd. “He added. “I think this will happen in the second half of the last decade.”
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