Aura Alliance Shines Bright: LVMH, Prada, and other luxury brands using blockchain technology for traceability and anti-counterfeiting

The Aura blockchain consortium, which collaborates with numerous luxury brands, utilizes blockchain technology for traceability and anti-counterfeiting efforts. Participants include LVMH, Prada, Cartier, OTB, and Mercedes-Benz among others.

Aura Blockchain Alliance

Aura Blockchain Alliance was co-founded by LVMH, Prada Group, Richemont's Cartier, and OTB Group's Diesel and Mercedes-Benz in April 2021. The purpose of this alliance is to develop blockchain technology applications to enhance luxury standards. Its touted features include:

• Verification: Allowing customers to directly verify and meet their new expectations for additional information, services, and transparency regarding the source of raw materials, manufacturing processes, and ownership certificate transfers.
• Connection: Strengthening personal relationships with customers in a new digital secure experience where they can easily use virtual products and access the best services directly.
• Empowerment: The solution platform covers the entire lifecycle of luxury goods production and consumption. This integrated technology solution ensures data circularity, data ownership, and privacy.

Blockchain Technology Aids Traceability

According to Bloomberg, OTB's service allows customers to use their smartphones to access the product authenticity certificate provided by the Aura Blockchain Alliance and information about the origin of the shoes through NFC chips embedded in the new Maison Margiela Tabi shoes.

Franck Le Moal, IT and Technology Director of LVMH Group, stated:

We believe that blockchain is a powerful driver that can enhance everything related to traceability, origin, and authenticity starting from the raw materials. One day, every product in the luxury industry will be able to benefit from digital product passports or certificates.

This technology can also help track the sales and maintenance history of products, including sales dates, maintenance and repair dates, and more.

Blockchain Technology Helps Combat Counterfeiting

According to the Organization for Economic Co-operation and Development's 2019 estimate, the annual value of traded counterfeit and pirated goods reaches $4.64 trillion, accounting for 2.5% of global trade. Blockchain technology is expected to be one of the weapons for the industry to combat counterfeiting.

Providing customers with a more reliable way to prove the authenticity of their products helps increase the appeal of genuine products and makes it more difficult to sell fakes in the second-hand market. This also makes it easier for customers to pass on or resell their products, and the technology can help prove the investment value of many high-priced items.

Traditionally, genuine certificates are plastic or paper cards with serial numbers that are easily lost or discarded. Inheritance items may not come with these certificates, making it difficult for recipients to determine the authenticity of the product. Storing ownership information online can help address this issue.