Luxury Brands are Investing in Blockchain to Increase Production Transparency
Some of the biggest luxury goods manufacturers are currently investing big bucks to research and adopt blockchain tech. A recent review regarding a Prada bag revealed that the production details regarding this product were uploaded on the Aura blockchain.
The bag presented the buyers with a card that offered link to the data records to warrant the 100% recycled fiber production of the material. Prada Group is among one of the luxury goods giants that are pouring millions of dollars in research and adoption of similar blockchain protocols.
During the last year, various companies such as Louis Vuitton, Maison Margeila, and Loro Piana have reportedly invested in blockchain projects for improving traceability. The luxury goods producers have become increasingly worried about ensuring consumers about authenticity of their products and to avoid issue of counterfeit products.
In 2019, the knockoff brands pirated a market share of $464 billion from named brands. This amount makes up for 2.5% of the international trade markets as per estimates issued by Organization of Economic Cooperation and Development.
Stefano Rosso, the CEO of BVX, has told media that certification of brand authenticity with digital protocols solves a big problem for the industry. He claimed that it not only helps retail consumers to invest in the authentic and verified products but also allow companies to track the origin of material and production processes that are used by their contractors.
The parent company of BVX, OTB Group is part of the Aura blockchain consortium. This consortium was introduced in 2021 with specification for services in luxury goods.
Blockchain technology warrants the tamper-proof recording of various products as part of the supply chain process thus addressing the issue of lack of trust for international traders.
Other companies in this alliance include names like Prada Group, Richemont, LVMH, and Mercedes-Benz. The platform has around 600K products listed from OTB Group alone. Consumers of the brand may access the blockchain to retrace the production process and material sources used in the manufacturing process.
Consumers do not have to visit various websites to check product reviews and spend time to locate the production details. Instead, the brand provides the consumers with all the necessary details on the blockchain after authentication and verification.
Sectors like Wall Street have also researched blockchain for upscaling the existing trading markets. However, the implementation and successful adoption of blockchain technology in sectors such as luxury brands can attest its applications for aforementioned industry working at higher stakes.
Blockchain Makes Brand Authentication Simple and Easy
In addition to their other luxury productions, Prada Group adopted blockchain tracking for their Fine Jewelry Eternal Gold line. The company now offers their consumers 100% warranted recycled gold products.
In this manner, the brand can ensure their consumers that their products are cruelty free adhere to human rights, comply with environmental preservation, and business ethics.
Consumers only need to tap their phones against the authenticity card that accompanies their purchases. General Secretary Daniela Ott at Aura blockchain stated that their product also plans to mitigate risks in the luxury house markets.
Pierre-Nicolas Hurstel, CEO of Arianee, shared the blockchain application that allowed him to scan his watch on his phone to confirm sales history, warranty, and other details.
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