Traditional companies are sometimes slow to embrace the technologies and ways to use Web 2.0. Some people seem to be inclined not to reproduce the same scenario with Web3.
This is especially the case for L’Oréal, a cosmetics giant with almost 90,000 employees and a market value of over 200 billion euros. Therefore, he adds a number of blockchain technologies to beauty technologies.
Web3’s First Venture Investment and the Metaverse
To do this, the group takes a stake in the American startup Digital Village on the occasion of a seed or seed fundraiser. The transaction is carried out through BOLD.
BOLD (Business Opportunities for L’Oréal Development) is the company’s venture capital fund. This investment is also a first in the Metaverse and Web3 space.
On the other hand, L’Oréal already has several initiatives in this emerging market. Among them is a partnership with Ready Player Me, a virtual avatar design service. The goal is to offer a range of hair and makeup inspired by the Metaverse games.
In early 2022, the brand also launched a collection of non-fungible NFT tokens. Through his capital ties to Digital Village, he can hope to improve his Web3 skills and define monetization methods. As such, L’Oréal sees Digital Village solutions as “powerful catalysts” for its products.
The use of NFTs in beauty will be determined
The startup positions itself as “a platform that enables the use of services in the metaverse (metaverse as a service) and the NFT market for brands, creators and communities.”
This area is still in its infancy. Gartner estimates that the metaverse will not reach maturity until 2030. Thus, the challenge for brands is to prepare for the potential emergence of new channels and consumer profiles.
“L’Oréal continues to explore the world of beauty in Web3 by continuing to work with the most promising startups, offering the highest visual and technical qualities,” comments Camille Croeli, Managing Director of Metavers and Web3 at L’Oréal.
Some fashion and luxury brands are already managing to generate significant revenue from NFT sales and royalties in the secondary market. Mention, in particular, Nike, Gucci, Adidas or Dolce & Gabbana.