LVMH, the French fashion powerhouse, is reportedly working with Microsoft to tap blockchain for authenticating their luxury brands including Christian Dior, Givenchy, Celine, Hublot, and Louis Vuitton.
This is not the LVMH’s first foray into new technology. However, it recently experimented with foldable screens in terms of wearables in their Cruise 2020 line.
Their new platform, namely AURA, is the product of Microsoft’s cloud computing system ‘Azure’ and Ethereum’s design studio ‘ConsenSys’; the project has been underway for about a year.
Blockchain is a decentralised ledger ecosystem that creates transparent and accountable records in the form of blocks that can be verified for authenticity. Its most famous use by far has been in digital currency, though more firms are figuring out new ways to use this technology in several product life cycles, such as we have seen with Starbucks, IBM, Cathay Pacific, etc.
A few of the blockchain’s corporate applications fall into a ‘just because we can, doesn’t imply we should’ category. The general concept behind blockchain is not new: at last, it’s just a smart, fancy cryptocurrency ledger system. Still, it makes some sense for LVMH, that produces expensive luxury fashion goods which many consider being status symbols throughout the world.
LVMH is anticipated to open up their new toy to competitors, who can be a shareholder of AURA. This is not the first time that the luxury goods have looked to the technology for answers. Arianee is also a blockchain startup that styles itself in the form of a ‘digital identity’ standard for high-worth items.
High fashion has always struggled with counterfeiting issues, especially in Europe. Though introducing blockchain to the fashion world seems like an over-complicated way for the French fashion powerhouse LVMH’s existing customer base for proving that their new Givenchy dress is real. People who still buy reasonable fakes will be buying affordable fakes.
LVMH will soon roll out blockchain to Parfums Christian Dior and Louis Vuitton either this month or next before applying it to its sizeable roster of other luxury goods.