The reported plans by Louis Vuitton owner LVMH to launch a major blockchain project will “set a new standard in the world of luxury” according to a newly published report by Certilogo.
First reported by Coindesk in March, the Louis Vuitton blockchain project has not yet been officially commented on by LVMH, but is likely to see luxury goods from both Louis Vuitton and Parfums Christian Dior paired with a blockchain-based digital twin. This will ensure traceability and guarantee the authenticity of the products, which are common targets for counterfeiting.
The report, Making Blockchain Real: LVMH and the Future of Authentic Luxury, found that appetite for technologies that could ensure the authenticity of luxury goods was extremely high, with the majority of consumers expressing concern about possible counterfeiting.
In a survey of 1,500 consumers conducted by Certilogo across the UK, the US, Italy, France and China, 83% said that they had been concerned that brand-name products they had purchased might be counterfeit.
This was even higher in China, one of the biggest consumers of luxury goods, where 95% of respondents expressed concern over the issue.
Louis Vuitton blockchain plans mark the start of an industry wide transformation
According to Certilogo, the Louis Vuitton blockchain project is likely to be the start of an industry wide change, as other brands seek to follow suit. Reports have also suggested LVMH is likely to offer the technology as a white-label solution to other luxury brands, making rapid proliferation plausible.
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“When a big name with such a lot of respect, such as LVMH, decides that product authentication is a must for luxury customers, it’s time for every brand that’s in the high-end luxury and lifestyle market to pay attention,” said Michele Casucci, founder and CEO of Certilogo.
“This is the beginning of a new era for genuine luxury and its good news for everyone.”
However, the report acknowledges that blockchain has its own limits, saying that it will not on its own “cure the epidemic of counterfeit products in luxury”, however Certilogo argued that “it can be a useful building block in a comprehensive brand strategy to fight counterfeits”.
“The blockchain is one of the most exciting technologies of our generation to show consumers where a product comes from, who made it, what it is made of and whether it is genuine, but there are also some limits,” said Casucci.
The project, which is believed to be dubbed AURA, is reported to be launching in May or June of this year.