- Robyn Turk |
LVMH Moët Hennessy Louis Vuitton is working to solve the global problem of counterfeited luxury goods. The luxury group has launched AURA, the first international blockchain made to help consumers trace the and authenticity of luxury goods.
The AURA platform was developed through Microsoft and blockchain software company ConsenSys. Multiple LVMH brands are already involved in the blockchain, including Louis Vuitton and Parfums Christian Dior.
The platform was designed specifically by and for luxury brands. It offers brands multiple options for use, such as a focus on the sourcing of raw materials, or a focus on providing tailored services and strengthening consumer loyalty.
AURA also works for consumers to help trace a product's lifecycle from design to distribution. In this sense, the platform is designed to protect intellectual property.
Luxury resale market leads to authenticity concerns
Consumers and retailers alike are increasingly interested in the resale of luxury items. Just this month, Farfetch launched an online resale platform for handbags, while Rebag and The RealReal each opened their third brick-and-mortar locations for luxury resale stores, in LA and New York respectively.
As the resale market is projected to grow from 24 billion to 51 billion dollars in the next five years, the desire to prove authenticity of luxury products grows. Chanel voiced concerns regarding the authenticity of its resold products several months ago with a lawsuit against The RealReal. In the lawsuit, the French luxury brand raised question with the retailers authentication experts.
Now with the AURA platform, consumers have technology that can attest to to origin of luxury items. The platform provides information as detailed as where an item was first purchased and when it was offered for resale, and therefore is designed to prevent counterfeiting globally.
Picture: Fendi/LVMH website