ESSEC METALAB

RESEARCH

HOW LUXURY BRANDS ARE MANUFACTURING SCARCITY IN THE DIGITAL ECONOMY

[ARTICLE] This article explores how traditional luxury goods companies are beginning to treat digital platforms as marketplaces, leveraging Blockchain technology and Non-Fungible Tokens to apply luxury attributes like rarity, exclusivity, and cost to virtual products.

by Hannes Marten GURZKI (ESSEC Business School)

Traditional luxury goods companies have treated digital as a channel. But they’re now starting to treat it as a marketplace in its own right, thanks largely to Blockchain technology, which has delivered the Non-Fungible Token. Today, the key ingredients of luxury – rarity, exclusivity, and cost — can also apply to virtual products, as companies like Balenciaga, Louis Vuitton, and Gucci have realized.

[Please read the research paper here]

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