Prada, and Cartier (owned by Richemont) have signed up to the Aura Blockchain Consortium developed by LVMH, the world’s first global luxury blockchain. The goal of the consortium is to address mutual challenges in the industry through blockchain technology.
One of the main issues that luxury brands face is counterfeiting. In 2020 alone, the U.S. Customs seized $1.3 Billion in counterfeit goods. Since most of the value of luxury goods is in the brand itself, ensuring that the products sold on the market are authentic is essential to preserve the prosperity of these companies.
LVMH launched the Aura Blockchain with Microsoft and ConsenSys in 2019 for this exact purpose. Consumers can authenticate an LVMH product by scanning a QR code on the label and access an app with the story of the item, from its raw materials to manufacturing and distribution. The app also has information about product care and warranties.
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