The Use of Blockchain Technology by Luxury Companies

Counterfeits are a cosmic problem for high-end designers around the world. According to CNN, Luxe brands lost over $98 billion worth of sales to fakes in 2017! As luxury counterfeit goods become more accurate in appearance (also known as “super fakes”), it is becoming more difficult for luxury brands and secondhand retailers to be counterfeit-proof. An example of this is a company like The RealReal! Second-Hand luxury platforms are now investing in authenticity checks by experts to provide a credible platform for customers to buy and sell luxury items.

Luxury brands are proving the authenticity of their goods with NFTS and a few different cases of blockchain technology. The most reputable company is AURA. In May 2019, luxury goods conglomerate LVMH partnered with Microsoft and New York-based blockchain software technology ConsenSys to announce the launch of AURA, a blockchain-based platform for authenticating luxury goods, according to Aura. Aura is a non-profit association of luxury brands investing in technologies useful to enhance the customer experience and build a virtuous future for luxury. They "strive to make blockchain solutions and related technologies easy and available to all luxury brands irrespective of their size,”(Aura Webpage). The Founding Members of the company are; LMVH, Mercedes-Benz, OTB, Prada Group, and Richemont. 

To Join Aura, a brand or company submits an inquiry. They may be accepted and after that, they can choose between Aura Standard and Aura SaaS. “What Aura is all about is making blockchain easy for luxury brands.” To date, more than 20 brands are using Aura's software, with over 17 million products registered on the platform, says Daniela Ott, the general secretary of Aura Blockchain Consortium.