In a rare show of collaboration among luxury giants, and at a time when authenticity is taking on increased importance with the rise of resale, Richemont, LVMH and the Prada Group are addressing transparency and traceability issues in the luxury arena through the co-creation of the Aura Blockchain Consortium.
Described as “an unprecedented cooperation in the luxury industry”, the Aura Blockchain Consortium, a non-profit platform founded by Richemont, LVMH and Prada Group through their respective maisons Cartier, Louis Vuitton and Prada, is the sector’s first global blockchain. Open to luxury companies worldwide, the platform gives brands oversight on a product throughout its life cycle, allowing them to address counterfeiting issues while gaining control over the second-hand market and strengthening the brand-consumer relationship. “The luxury industry creates timeless pieces and must ensure that these rigorous standards will endure and remain in trustworthy hands,” noted Cyrille Vigneron, Cartier International President and CEO.
While a collaborative initiative, brands retain control over their data and develop their own experiences. “Offering one standard industry solution makes the customer experience a lot easier and more fluid, rather than having to deal with multiple and different solutions,” explains Toni Belloni, LVMH Managing Director.
Secured by ConsenSys technology and Microsoft, Aura Blockchain works by matching each product’s unique digital ID to a client ID. A chain of secure, digital “blocks”, which cannot be reproduced or tampered with, forms the infrastructure for consumers to access a product’s history, including all transactions, and provides proof of authenticity across the value chain, from its creation to the point-of-sale and on the secondhand market, negating the need for third-party certification. The technology also allows for marketing benefits as luxury brands can communicate on materials, craftsmanship and the creative process directly to the consumer with no intermediaries.
Bulgari, Louis Vuitton, Hublot, Cartier and Prada are the first brands to join the platform.