Its role in business might be in flux, but one luxury giant is said to be betting big on blockchain.
LVMH is reportedly planning to launch a blockchain platform that will trace and confirm the authenticity of the high-end wares produced by the 70 luxury houses under its umbrella, according to CoinDesk, an outlet that covers developments in the blockchain and cryptocurrency worlds.
A spokesperson for LVMH told Sourcing Journal the luxury conglomerate made no announcements on any blockchain plans and was unable to comment on the matter. A ConsenSys spokesperson confirmed that the company is partnering with LVMH on this project.
LVMH’s reported move into blockchain would be a big win for the technology, which has seen slow uptake and some hiccups in industries like shipping and logistics where it’s managed to make inroads.
Reports indicate that the blockchain project, codenamed AURA, has been in the works for a year with expertise from blockchain leader ConsenSys and the cloud computing team at Microsoft Azure. The platform is said to give consumers visibility into LVMH products from their raw material origins through purchase and post-sale, providing end-to-end supply chain transparency.
The development comes nine months after China’s Secoo luxury platform launched its own anti-counterfeiting blockchain platform, said to be the first distributed ledger built by a luxury company. Secoo has been authenticating for 10 years and owns the largest authentication center in Asia in addition to 100 appraisers worldwide.
Blockchain could help LVMH protect its reputation and revenues that totaled nearly $53 billion last year. Counterfeiting in fashion and textiles was said to siphon $98 billion from legitimate businesses in 2018, according to the Global Brand Counterfeiting Report.
Goods from the Louis Vuitton brand and the fragrance group within Christian Dior are said to be the first products that will be tracked on the blockchain.