The blockchain solution, dubbed Aura, will enable authentication of luxury goods by matching a product ID to a client ID that provides the history of a product and proof of its authenticity, down to tracking the raw materials and to the sale.
LVMH Moet Hennessy Louis Vuitton has teamed up with Prada and Richemont in Aura Blockchain Consortium, private blockchain secured by ConsenSys technology and Microsoft.
The blockchain solution represents a significant milestone for luxury retailers who are typically rivals. In addition, Aura is open to all luxury brands, according to LVMH, and is flexible for smaller brands. The collaboration is unprecedented, but reveals that technology may be common ground for this high-end bunch of retailers.
“Aura represents a new way for luxury brands to communicate directly to consumers, telling a unique story around the quality of their materials, craftsmanship and creativity, and strengthening the relationship between client and brand,” the announcement reads.
Retailers have started to engage with blockchain technology over the last few years, but most advancement has centered around supply chain and payment system needs.
Louis Vuitton, Hublot and Bvlgari--all LVMH Maisons brands--are already active on the platform. The technology works through a chain of secure, non-reproducible, digital blocks that does not require third-party authentication. For example, Hublot clients can verify the authenticity of their watch by taking a photo on their phone through the digital e-warranties stored in Aura.
“The Aura Blockchain Consortium is a great opportunity for our sector to strengthen our connection with customers by offering them simple solutions to get to know our products better,” LVMH Managing Director Toni Belloni said in a statement. “By joining forces with other luxury brands on this project, we are leading the way on transparency and traceability. I hope other prestigious players will join our alliance.”