Aristotle said, “A communal enemy unites the bitterest of enemies,” and that age-old maxim is erstwhile again proving true. This week the fiercest competitors successful the luxury marketplace – LVMH, the Richemont-owned Cartier and Prada Group – person joined forces to combat a common enemy: counterfeiting.
Together they formed the non-profit Aura Blockchain Consortium to enactment blockchain exertion to work assuring customers of the authenticity of luxury goods.
Developed by Microsoft MSFT -0.9% and ConsenSys, the Aura blockchain strategy uses a akin distributed platform that controls cryptocurrencies. Through it, consumers volition beryllium capable to entree a product’s past and impervious of authenticity based upona a integer certificate they volition person electronically upon purchase. Each point volition see a unique identifier, specified arsenic an NFC spot for bags oregon a serial fig for watches, which will beryllium linked to the certificate connected the blockchain.
“Consumers tin easy and transparently travel a product’s lifecycle, from conception through distribution, with trusted information throughout, and frankincense fortify their relationship with their favourite luxury brands,” Aura said successful a statement.
And Cyrille Vigneron, president of Cartier and a subordinate of Richemont’s Board and Senior Executive Committee, added, “We invitation the full assemblage to articulation this consortium to plan a new luxury epoch enabled by blockchain technology.”
The New York Times reports that Bulgari, Cartier, Hublot, Louis Vuitton and Prada are already utilizing the system and the Aura merchandise indicates “several precocious conversations” are being held with different luxury brands to articulation the Consortium.
Luxury brands volition wage an annual licensing interest and a measurement interest to enactment successful the system, which is definite to be wealth good spent considering the $2.7 to $3.2 trillion dollars taken successful by luxury counterfeiters, according to Harvard Business Review.
Counterfeiter’s growing sophistication has weakened the accepted levers of luxury marque authentication, like logos and distinctive style. The Aura Blockchain Consortium volition adhd an unbreachable level of security.
Reflecting connected what this blockchain inaugural means to luxury brands, Dr. Martina Olbert, laminitis of Meaning.Global, says, “This confederation tin beryllium a crippled changer for the aboriginal of luxury,” arsenic she sees the aboriginal of luxury arsenic collaborative, not competitive:
“The confederation of 3 big players signals thing important astir the aboriginal of the luxury market dynamic. Luxury isn’t a crippled of competition. Luxury is simply a crippled of value creation. It is based connected embracing the unsocial identity, authenticity and inner essence of brands. To relation that mode again, the luxury manufacture needs to become corporate and tackle challenges arsenic a whole.”
In effect, this inaugural looks back to the accepted instauration and practice of luxury brands – the timeless pillars of luxury, specified arsenic provenance, uniqueness, scarcity and sancity of the brand – and brings it guardant with a 21st technology-based solution.
“The determination signals a greater connection and acknowledgement of the roots of luxury – wherever luxury came from and the request to support its semipermanent worth – arsenic good arsenic wherever it’s going,” Olbert continues.
Not lone does it support the brands, it besides adds a furniture of extortion for consumers who wage a premium for ownership.
“In a satellite afloat of counterfeiters and poseurs, protecting clients is captious to protecting the luxury brand,” notes Chris Ramey, laminitis of Affluent Insights. “Aura will secure the accepted pillars of luxury which specify luxury brands and protect their affluent clients.”
The Aura Blockchain Consortium will beryllium win-win for some luxury brands and their customers. It restores trust in a strategy that desperately needs it.
“Brands tin instrumentality backmost control over the lawsuit relationships and absorption connected creating semipermanent worth for themselves by putting the customers archetypal and giving the customers transparent access to the luxury brands for communication, traceability and purchase,” concludes Olbert. “This is simply a large measurement successful the close direction.”
Source - https://www.forbes.com/sites/pamdanziger/2021/04/22/lvmh-cartier-and-prada-partner-to-fight-counterfeits-and-invite-other-luxury-brands-to-join/?sh=51e1750b3072