Louis Vuitton, Cartier and Prada are coming together in what is described as an unprecedented collaboration to offer a solution based on Technique Blockchain for European luxury corporate clients looking for an additional stamp of authenticity for the merchandise they purchase.
In a joint statement, the companies said: The alliance of the world’s largest luxury goods makers plans to provide a blockchain-enabled solution for all luxury brands to provide shoppers with assurance that what they buy is authentic, as well as making products traceable in a transparent way.
LVMH Managing Director Antonio Belloni said: Blockchain technology is a digital way of authenticating a transaction by providing an encrypted escrow certificate.
Such certifications have long existed in the industry, but blockchain’s reputation as an as yet unhackable tool means that this project, called Aura Blockchain, It might work better.
Blockchain plans to track and certify luxury goods were first announced by Louis Vuitton early in 2019 and have now materialized in the form of Aura Blockchain.
Given that blockchain technology is decentralized and nearly impossible to change, companies hope to leverage the technology to create a global digital ledger that records all of their products, providing a reliable and dependable database.
The new system allows owners to log in and track exactly where the component originated, its environmental impact, any ethical dimensions affected, proof of ownership, and warranty.
The luxury brands suffer billions of dollars in revenue losses due to counterfeiting.
Global trade in counterfeit products will reach $ 991 billion by 2022, nearly double the 2013 level, according to Frontier Economics.
This estimate includes luxury goods, consumer products, and other categories, including medicines.
Cartier CEO Cyrille Vigneron said: It is likely that the Aura Blockchain project will evolve because it is still a modern technology.
Cartier tested one feature with Online Product Returns, allowing shoppers to take a picture and upload it via blockchain to prove that the status of the product they were returning did not change between the time of receipt and the time it was shipped back to the brand.
Vignon said: It is a simple thing, but it means that the trust between the two parties has strengthened, and added that the auction houses may be interested in using such products when they are sold for plastic arts.
Belloni explained that the consortium is a way to set an industry standard rather than for each brand to develop its own solutions separately.
The project continues Aura Blockchain Along with other luxury collections, Belloni declined to disclose which brand might join next.
He added that customer data encrypted via blockchain would not be able to be accessed by competitors.
Bulgari and Hublot are experimenting with this technology, while Tiffany is the next candidate brand.
“Trust is the only key on which our industry is founded and we want to preserve it,” Belloni said, adding that all customers, especially the young, are concerned about this problem.
These solutions may also allow people to more easily sell used luxury items.
Both executives said that while the technology is enabled by blockchain, there are no plans to accept payments for these commodities in cryptocurrency.
Microsoft and ConsenSys are helping luxury groups develop the technology infrastructure for this solution.