THE WHAT? LVMH has joined forces with Richemont-owned Prada and Cartier to develop the Aura Blockchain Consortium, which aims to assist consumers in the authenticity and traceability of luxury goods.
THE DETAILS Said to be the world’s first global luxury blockchain, the collaboration between the competitors is said to represent a ‘single, innovative solution to shared challenges of communicating information on authenticity, responsible sourcing and sustainability in a secure, digital format,’ according to an LVMH press release.
The Aura Blockchain technology matches a product ID to a client ID, which then through a chain of blocks allows consumers to access the history of a product and gives proof of its authenticity from raw materials to point of sale.
Following the entire lifespan of a product via data, Aura is said to give brands a new way to communicate directly with consumers.
THE WHY? As luxury bucks the pandemic fall-out and is set for future growth, counterfeit products will inevitably soar. The new blockchain consortium, which is open to all luxury brands, will undoubtedly help create consumer peace of mind.
LVMH Managing Director Toni Belloni comments: “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. 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.”