By Nour Chaarani
As customers become increasingly concerned with the ethical origins of their products, especially when it comes to luxury goods, and companies seek to confirm the provenance of their wares, blockchain technology seems to be the solution to suit all parties involved.
As specified in multiple articles in our blog, the blockchain technology is provenly safe and has the particularity of publicity which creates an infinite number of possible uses in our current world. The industries that blockchain has pierced include the electoral system, the food industry and now the fashion industry, just to name a few.
According to recent news, LVMH Group, ConsenSys, and Microsoft Azure have jointly developed a blockchain platform based on JPMorgan’s Quorum for tracking its products using the Ethereum (ETH) blockchain. For more than a year, LVMH has reportedly hired a full-time blockchain team to work on the AURA project. LVMH brands including the French Louis Vuitton and Christian Dior are already involved in the project that is expected to prove the authenticity of LVMH’s luxury products by providing unique information about every good stored on a shared ledger. The AURA is essentially the solution to the long-discussed issue of the nature of globalized trade, meaning that the blockchain platform insures the traceability of products at the time they are sourced, collected, assembled, shipped in multiple different countries and then sold in the world’s major cities. LVMH is offering their clients the possibility to use the brand’s official app to obtain a certificate offering details about its provenance. This service is not only for brands involved in the project, but the goal is to extend to LVMH ‘s other brands, as well as eventually high-end name competitors whilst simultaneously protecting the privacy of each brand. Furthermore, Aura will eventually be offering protection of creative intellectual property and anti-advertising fraud, in addition to their existing ethical and environmental information database.
Briefly, the Blockchain technology, once again, proved its efficiency in a previously unexplored field. The perfectly decentralized system makes it possible to create sustainable and profitable business models serving the entire luxury industry, helping firstly, companies streamline their supply chains and secondly, proving the authenticity of luxury products by giving information regarding after-sale warranty services all the way to second-hand markets.