Richemont’s Cartier, LVMH, and Prada SpA collaborate to provide a blockchain solution to their consumers seeking authenticity for their purchasing goods. The alliance plans to make the Aura Blockchain accessible to other luxury brands. The solution will offer their consumers more comprehensive assurance that their products are authentic by offering an encrypted certificate of guarantee. It will also make the products more traceable, promoting the resale of luxury goods on the secondary market.
Moreover, fashion brands are adopting blockchain technology to fight counterfeit markets, to which they lose billions annually. Further, research firm Frontier Economics predicts the global trade in counterfeits to inflate to $991 billion by 2022. This is approximately double the amount in 2013. The assessment involves not only luxury goods but also customer products and various other categories such as pharmaceuticals.
Aura Blockchain to evolve in Future
Alliance member Cartier has already trialled one feature of the Aura Blockchain with online product returns. To date, shoppers have been capable of taking a photos of goods they intend to return before returning it. This way, consumers can assuredly confirm the product did not face any damages or alterations after they first received it. As per Cartier CEO Cyrille Vigneron, the Aura Blockchain will transform since it’s still an emerging technology. He also suggested that auction houses apply blockchain technology to validate the sale of fine art.
Moreover, LVMH Managing Director Antonio Belloni elucidated that instead of each brand developing its solution, the alliance is a method to establish an industry standard. Belloni advocated that the consortium is connecting with other luxury groups to expand the usage of the Aura Blockchain. Nevertheless, he failed to disclose the names of the same. He further continued that the client data encrypted over the blockchain wouldn’t be available to rivals.
LMVH is a fashion brand conglomerate with numerous famous names under its management. In LVMH, Louis Vuitton, Bulgari, and Hublot are just a few that have previously tried the technology. Belloni suggested that Tiffany & Co. is the next candidate. However, employing blockchain technology in an authenticating capacity, none of the brands has the views to accept payment in cryptocurrencies. Meanwhile, several fashion brands have adopted a variety of approaches to mesh with blockchain technology.
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