LVMH is joining forces with two other big names, Prada and Cartier, in order to put out the world’s first global luxury blockchain, according to a Tuesday (April 20) press release. The blockchain is called Aura Blockchain Consortium.
Aura “represents a single, innovative solution to shared challenges of communicating information on authenticity, responsible sourcing and sustainability in a secure, digital format,” the release stated. The goal is to give consumers a high quality of transparency and traceability through the entire lifecycle of a product.
The tech of Aura will match a product identification with a client identification, providing infrastructure through “a chain of secure, non-reproducible, digital blocks” and allowing consumers to see the whole history and proof of authenticity of a product, according to the release.
“The Aura Blockchain Consortium is a great opportunity for our sector to strengthen our connection with customers by offering them simple solutions to get to know our products better,” LVMH Managing Director Toni Belloni said in the release. “By joining forces with other luxury brands on this project, we are leading the way on transparency and traceability. I hope other prestigious players will join our alliance.”
The release noted that Aura will give customers “a new way for luxury brands to communicate directly to consumers, telling a unique story around the quality of their materials, craftsmanship and creativity, and strengthening the relationship between client and brand.” It will also help to solve difficulties in traceability, sustainability and authenticity, which have been common for luxury brands.
PYMNTS reported in January 2020 that counterfeiting was an issue with luxury goods, which was expected at that time to bring in around $1.8 trillion. That number included some consumers who are not against buying a good fake.
However, customers seeking genuine items don’t want to be scammed. Marketplaces have implemented authentication procedures to prevent that from happening.
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