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In a press release published on Tuesday 20 April, the world’s number one luxury goods company LVMH announced its new partnership with Prada and Cartier – both part of the Richemont group – to develop Aura Blockchain Consortium, the first international luxury blockchain. The goal? To provide customers with a high level of transparency and traceability throughout a product’s life cycle.
“This unprecedented collaboration between competitors represents a unique and innovative solution to the common challenge of communicating information about authenticity, responsible sourcing and sustainability in a secure digital format,” the world’s leading luxury goods company said in an official statement released on Tuesday.
As the issues of traceability, sustainability and authenticity are common to all luxury brands, the idea of working together to promote change and develop a shared solution made sense to all three competitors.
The LVMH group has joined forces with Prada and Richemont to design Aura Blockchain Consortium, a private multi-node blockchain secured by ConsenSys and Microsoft technology.
“Open to all luxury brands, not just founders, Aura offers flexible solutions to support companies of different sizes and adapt to individual needs,” the statement said.
Among the LVMH brands, Hublot, Bvlgari and Louis Vuitton are already active on the platform. Hublot, for example, has launched a digital guarantee stored on Aura’s infrastructure, allowing customers to verify the authenticity of their watch with a simple photo taken with a mobile phone.
Brands using Aura develop their own experience according to their specificities and their customers’ expectations. They also retain their own data and adhere to the highest standards of customer privacy, with information stored on the blockchain in such a way that it cannot be altered, falsified or hacked.
Aura Blockchain’s cutting-edge technology combines a product identifier with a customer identifier, allowing consumers to access a product’s history and proof of authenticity at every stage of the value chain, from raw material to point of sale.
Customers can therefore follow the entire life cycle of a product.
Through a chain of secure and non-reproducible digital blocks, the blockchain provides reliable data without the need for third-party verification.
A new way for luxury brands to communicate directly with consumers, telling a unique story about the quality of their materials, their know-how and their creativity, while strengthening the relationship between customer and brand.
Toni Belloni, Chief Executive Officer of LVMH, said: “For our industry, the Aura Blockchain Consortium represents an unprecedented opportunity to strengthen the bond between us and our customers by offering them simple solutions to better understand our products. By joining forces with other luxury brands on this project, we are leading the way in transparency and traceability. I hope that other prestigious players will join this consortium.”
Read also > IN A POST-COVID LUXURY INDUSTRY, WHY WILL MERGERS AND ACQUISITIONS MULTIPLY ?
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