Louis Vuitton Moet Hennessey (LVMH), which had a turnover of $46.8 billion in 2018, is the owner of luxury brands including Veuve Clicquot, Hennessy and Chateau d’Yquem and has officially announced a Blockchain-powered platform called "Aura".
Aura is designed to enable luxury brands to track materials that are used to manufacture items, through supply channels and production, to the shops where they are sold. It is also the intention to use Aura for some luxury brands for the trade of second-hand items such as handbags, dresses, watches etc. The second-hand market is currently $360 billion p.a. and is predicted to grow to over $400 billion in 2020, making it actually larger than the market for new luxury brands, which is $302 billion, according to the fashion resale company Thredup.
What is really interesting about Aura (which is being built with ConsenSys and Microsoft) is that LVMH has signalled that it is already in discussions with other leading luxury brand owners (i.e. its competitors) to use the technology. The idea is that the technology will become "industry-wide" through a consortium membership model (details are TBC).
Ken Timsit, Managing Director of ConsenSys Solutions, the enterprise blockchain arm of ConsenSys, comments: “AURA is a groundbreaking innovation for the luxury industry. ConsenSys is proud to contribute and to work with LVMH on an initiative that will serve the entire luxury industry, protecting the interests, integrity, and privacy of each brand, leveraging Ethereum blockchain technology in a truly decentralised way.”
Learn more about use of blockchain and innovative technology in the lux/lifestyle space at out event on 5 June 2019. Further details and registration here: https://thecollectivebyls.com/blockchain-event/
ConsenSys has teamed up with LVMH and Microsoft to build a blockchain-powered platform that allows consumers to verify the authenticity of luxury goods, according to a news release on May 16. The consortium says the system, known as Aura, is designed to “serve the entire luxury industry with powerful product tracking and tracing services.”