Global Luxury Brands Combat Counterfeits with Blockchain: "Verify Digital Certificates"

Employees of the Incheon Customs Headquarters of the Korea Customs Service are inspecting counterfeit goods and smuggled items seized at the Incheon Customs First Designated Facility in Jung-gu, Incheon. / Incheon - Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Kim Bo-kyung] Global luxury brands are jointly creating a blockchain platform to combat the distribution of counterfeit goods.

According to a CNN Business report on the 26th (local time), the French fashion group Louis Vuitton Mo?t Hennessy (LVMH) partnered with competitors Prada and Cartier last April to establish the "Aura Blockchain Consortium."

The non-profit platform Aura uses blockchain technology to provide a kind of digital certificate for luxury products. The certificate contains information such as when and where the product was manufactured and how many were produced.

The contents of the digital certificate can be verified through the website or a mobile application (app). Currently, about 20 luxury brands use Aura software, and 17 million luxury products are registered on this platform.

The streetwear designer group "OTB" and automobile manufacturer Mercedes-Benz recently joined as founding members. Founding members differ from regular members in that they share development costs and have greater influence in consortium management.

CNN Business explained that luxury brands have turned to the latest technology, blockchain, because the damage caused by counterfeit goods is so severe. It is estimated that luxury brands suffered sales losses worth $98 billion (approximately 127 trillion KRW) due to counterfeit goods in 2017 alone.

An Aura representative said, "These brands are competitors in every other aspect, but they cooperate to develop this platform in a faster and safer way."

This content was produced with the assistance of AI translation services.