LVMH, Prada and Richemont-owned Cartier have joined forces to form a new blockchain-powered anti-counterfeit group.
‘Aura Blockchain Consortium’ has been launched by the rival luxury fashion giants and will give customers a digital certificate of authenticity electronically upon purchase.
This will enable shoppers to see the product’s history and will give every item a unique identifier, such as an NFC chip or serial number which will be linked to the certificate on the blockchain.
Aura’s system is already being used by Bulgari, Cartier, Hublot, Louis Vuitton and Prada, according to the New York Times, and the group has invited “the entire profession to join the consortium to design a new luxury era enabled by blockchain technology”.
Brands will be required to pay both an annual licencing fee and volume fee to gain access to the system.
Counterfeit items cost the luxury industry around $3 trillion a year, as traditional forms of authentication become less effective.
Aura hopes its new blockchain initiative will add an unbreachable level of security for both its luxury partners and customers.
“Consumers can easily and transparently follow a product’s lifecycle, from conception through distribution, with trusted data throughout, and thus strengthen their relationship with their favourite luxury brands,” Aura said in a statement.