Luxury corporations LVMH, Richemont and Prada have announced an “unprecedented partnership” that is embarking on a blockchain consortium that will allow consumers to track and validate their goods.
The luxury sector is notorious for being where counterfeit and pirated goods are problematic. According to research firm Frontier Economics, the global counterfeit trade will increase to US $ 991 billion by 2022. While this figure also includes other consumer products in categories such as pharmaceuticals, field of resale and “re-trade” through sites like Vestiaire and Collections RealReal It also means a higher chance of getting scammed online and selling stolen luxury goods.
In order to minimize the risks associated with the situations mentioned above, luxury groups have used blockchain technology to provide authentication. The irreversible nature of such technology makes these companies the top choice for leveraging and creating a global digital ledger that can store information such as the history of products, by means of Ownership, warranty, and maintenance proofs, all accessible to the consumer. .
“Consumers can easily and transparently track product lifecycle, from creation through distribution, with reliable data throughout and thus strengthening their relationships with brands. Their favorite high-end, ”the company said in a statement.
Called Aura Blockchain ConsortiumThe initiative was first conceived by LVMH in 2019, and it partnered with Microsoft and a software technology company ConsenSys to form the project. Currently, the brands Bvlgari, Cartier, Hublot, Louis Vuitton and Prada are active on the platform.
The use of blockchain has recently become popular as seen in the recent surge in interest Cryptocurrencies like Bitcoin and the reason, the rise of NFT in the digital space. This move towards high-tech solutions is also in line with current trends seen in various industries, driven by coronavirus.
In the end, each luxury brand has their own unique heritage and they are certainly eager to share their story through their faire savoir but with so many other similar looking products on the market, That will only dilute their rich history.
“The Aura Consortium represents unprecedented collaboration in the luxury industry,” said Cartier CEO Cyrille Vigneron. “The luxury industry makes products that are timeless and must ensure that these strict standards endure and remain in the hands of trustworthy people.”