Hermès intends to enter the metaverse. Virtual worlds, according to the well-known French luxury company, are an excellent approach to engaging with customers. Hermès intends to follow in the footsteps of other luxury behemoths, using e-commerce as one of its key growth engines.
Hermès, the renowned French luxury company, released its quarterly financial results on Wednesday, April 20, 2022. The group expressed interest in the metaverse during the general meeting of shareholders held on this occasion.
Our colleagues at the Journal du Luxe report that Axel Dumas, Hermès’ PDG, has shown his interest in the digital worlds made possible by virtual or augmented reality. The CEO believes the metaverse has the potential to establish itself as a “good communication tool” for the company.
Hermès’ objectives were not realized by Axel Dumas. The luxury company, we believe, might use the metaverse to federate its community, open virtual reality shops, and sell virtual goods inspired by its innovations.
The metaverse is becoming increasingly important to luxury brands.
Hermès has steered clear of digital assets and Web3 so far. The fashion brand prefers to “learn and monitor” rather than rush its debut into the metaverse, focusing on its handcrafted approach. As a result, the Hermès group does not prioritize the metaverse.
In its quarterly financial report, the company specifies, however, that its sales are highly dependent on its online stores. Axel Dumas even states that “78% of our e-commerce customers are new customers”.
As a result, for the company, whose growth is entirely built on e-commerce, digital communication is a huge challenge. In any event, Hermès intends to “raise its strategic investments” in the foreseeable future, based on strong sales.
This decision comes after a few months of conflict between the French government and a non-fungible token manufacturer (NFT). In fact, Hermès discovered that a man named Mason Rothschild was selling digital bags inspired by signs. The multinational believed that the NFTs were an infringement of intellectual property.