The expansion of Web3 has lured several luxury brands towards it and more and more brands are expected to adopt it in the coming times. However, in the ongoing Paris Blockchain Week, a renowned luxury brand representative mentioned some negatives of Web3.
After having a series of pitfalls and triumphs in Web2, several luxury brands started turning to Web3. Louis Vuitton, Yves Saint Laurent (YSL) and most recently Balmain are some of the brands that have tested Web3 technology. However, their levels of success and mainstream adoption vary.
Speaking at the Paris Blockchain Week, a panel of representatives from the Moët Hennessy Louis Vuitton (LVMH), a French multinational holding and conglomerate specializing in luxury goods, highlighted that decentralization-focused “Web 3.0 ideology” is slowing down user adoption. LVMH owns globally-recognized luxury brands such as Louis Vuitton, Dior, and Fendi.
Additionally, Nelly Mensah, VP of Digital Transformation and Emerging Solutions, said that LVMH rather advocates for what they call “Web2.5.” Notably, the main banner over the LVMH panel read “Web3 is about ideology.”
Comparing Web3 and Web2.5, the executives said that at the core of Web3 are principles that intend to create a more decentralized, secure, and user-controlled web. It also aims to end the manipulation of centralized systems by creating a more decentralized and distributed web structure and giving users control instead of a centralized governing entity.
Mensah describes Web2.5 as a softer and ‘less ideological’ approach to Web3. She says Web2.5 is where the old user habits meet the new technology made available by Web3. Web3 ideology is a term used to refer to the system of beliefs tied to decentralization.
Notably, Mensah also used the phrase “not your keys, not your coins” as an example to illustrate her point. She added that the beliefs behind Web3 make it more difficult for users to access products. Hence, this eventually slows down the adoption of the mainstream, posing a threat to the significance of the technology.
As obvious as it is, the lack of mainstream adoption would prove harmful to the ultimate goal of the technology. Hence, Mensah suggests that a greater focus on Web3 technology and a lesser focus on the overarching goal of decentralized systems are set to propel adoption.
In 2021, LVMH announced a partnership with ConsenSys to create a blockchain-powered platform called Aura. The platform was to provide customers with a secure and transparent way to track the authenticity and origin of their luxury goods, from raw materials to finished products.
Todayq News reported that Balmain, the French luxury fashion house, recently ventured into the Web3 world with the launch of its limited series of NFT sneakers. The collection comprises 130 Ethereum NFTs, each of which is paired with a matching physical pair of shoes. The sneakers, which are available for purchase from today, cost between $1,595 and $2,095, and buyers can pay in either traditional currency or ETH.
It is important to note that while entities across the globe are actively proceeding towards Web3, LVMH has brought into the picture very valid points. In November, an American multinational technology giant had to terminate its ongoing blockchain project. It had decided and initiated proceedings to develop a blockchain-based supply chain, “TradeLens” in 2018; however, had to discontinue it, citing a lack of global industry collaboration.