- LVMH has developed AURA, a blockchain-based platform that is to launch later this year
- The platform will ensure the authenticity of luxury goods
- LVMH is the parent company of brands such as Louis Vuitton and Christian Dior
Blockchain has been very active in the fight against counterfeiting in both the art and wine industries. Now, it would seem that its potential is being explored in a market that is both obvious and yet hasn’t gotten as much attention in the past-the luxury goods market.
This comes following a March 26, 2019 report which states that Moët Hennessy Louis Vuitton SE (LVMH), the parent company of luxury brands such as Louis Vuitton and Christian Dior, is partnering with Consensys and Microsoft Azure to develop a platform through which its products can be tracked.
The business of luxury
While the counterfeiting of goods exists in every industry, the countering of luxury goods is a billion-dollar business. It is also a business that harms the image of the brand and not just their potential sales. Needless to say, the fight to stop the flooding of fake luxury goods is an ongoing one.
The blockchain-based platform in question will be called AURA and was created in conjunction with Consensys and Microsoft Azure. It is scheduled to go live in May or June 2019 and as a pilot, will track goods from Louis Vuitton and Parfums Christian Dior, which are subsidiaries of LVMH.
The platform will ensure the authenticity of the products in question and will track them from their point of origin to their final point of sale. Should this trial run be successful, more products are expected to be introduced.
Development kept under wraps
While this new development was just announced, it has been in the works for over a year now, with an entire team dedicated to its creation along with Consensys and Azure. For now, its primary focus is the tracking of goods but there are plans to introduce other things such as creative property protection and anti-advertising fraud.
AURA, which is based in JPMorgan’s Quorum blockchain platform that runs on the Ethereum blockchain, could be the starting point of blockchain gaining new ground within the luxury goods market. Other luxury brands that compete with LVMH will likely develop their own platforms for product tracking and with that, blockchain will have an even bigger share of the billion-dollar luxury goods market,