Moet Hennesy Louis Vuitton, Prada and Cartier have partnered with the Aura Blockchain Consortium to create a blockchain solution. Luxury fashion brands can use it to track and guarantee the authenticity of their items.
The tech platform is operated by Aura and is accessible to any luxury fashion brand that joins the consortium irrespective of the size of the brand. However, the blockchain has been built to be flexible enough to address the specific needs of each brand, according to Aura.
Blockchain, Counterfeit items and fashion brands
The concept of a blockchain is that every available unit of an item is captured in a register. Each item can only be sold from the register and belong to one person at a time. This can prevent duplicity of the item and stop fake versions from circulating if the transactions happen on the blockchain.
The tech platform from Aura that Prada, LVMH and other interested luxury brands will be using will allow the brands to upload details of their items on the blockchain.
Anyone who wants to buy will be able to assess details such as product history, proof of authenticity of items from the time it was sourced to when it was sold. The details will also cover second-hand market details for the items if it exists.
This model employs a direct-to-consumer (D2C) model that eliminates intermediaries and ensures that the products are made according to brand standards. Manufacturers will be able to control secondhand markets and guarantee trusts for customers.
Research firm, Frontier Economics, luxury brands and some other sectors will be losing as much as $991 billion in revenue by 2022 due to the sale of counterfeits of the products if nothing is done.
To get many luxury brands to use the tech instead of developing their own, the consortium is letting brands test out the features. The client data that is encrypted onto the blockchain will not be accessible by rivals according to LVMH’s Managing Director, Antonio Belloni.
Some of LVMH’s subsidiaries, including Bulgari, Hublot and Louis Vuitton have already tried the tech and other luxury brands can inquire here email@example.com.