Luxury Brand Challenges to Block Chains

Luxury Brand Challenges to Block Chains

  As an example of the use of the blockchain, let’s talk about LVMH, ConsenSys, and Microsoft’s Etheream based AURA platform for authenticity of luxury brands. * LVMH (Louis Vuitton Moet Hennessy) is a large group with 75 luxury brands.   Challenges for the luxury brand The lux […]

 

As an example of the use of the blockchain, let’s talk about LVMH, ConsenSys, and Microsoft’s Etheream based AURA platform for authenticity of luxury brands.
* LVMH (Louis Vuitton Moet Hennessy) is a large group with 75 luxury brands.

 

Challenges for the luxury brand

The luxury brands industry has been plagued by counterfeit goods for years.

According to the OECD, counterfeit and pirated goods account for 3.3% of global trade, and luxury brands account for 1/4 of all transactions. It reportedly accounts for 60% to 70% of all fraudulent transactions.

Among them, Louis Vuitton is said to be one of the most counterfeit brands, and there is information that LVMH has invested more than 1.5 billion yen to combat counterfeiting.

 

Solutions using blockchains

Verification of authenticity through the use of blockchains

One use of blockchains is to enhance traceability by using features such as “Difficulty of data modification, centralization of information, automated verification of compliance”. This allows buyers to verify historical information and authenticity (Is it genuine?) of purchased items.

The newly announced AURA platform also keeps track of the entire process, including raw materials, manufacturing, and distribution, in a shared register of sequential blockchains.

Buyers can check various information such as the following by reading the product information using the application at the time of purchase.

authenticity of the goods
Raw materials for (including information on ethics and environmental impact) products
instruction manual for the product
Existence of after-sales service and warranty

 

It will not be long before blockchain systems become widely used in various industries.

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