Tech
The Prada Group uses Blockchain technology to verify the authenticity of products
Last Updated: August 30, 2023 9:51am EDT | 2 minute read
Prada Groupthe parent company of Miu Miuhas embraced high-tech solutions such as blockchain technology to combat counterfeit products.
The company, in collaboration with the Aura Blockchain Consortiumlaunched blockchain services that allow customers to verify the authenticity of purchased products, according to a Wednesday report from Bloomberg.
“The certificate of this authentic Prada product has been uploaded to the Aura Blockchain Consortium platform to record and guarantee its integrity,” reads a small card tucked among the company’s expensive products.
According to the Organization for Economic Co-operation and Development (OECD), counterfeit and counterfeit products account for approximately 2.5% of global trade, with an estimated value of $464 billion per year.
To combat this growing problem, the Prada Group, LVMH, Richemontand other industry leaders founded the Aura Blockchain Consortium in 2021 to develop blockchain solutions for tracking their highly coveted and expensive assets.
These brands aim to provide customers with a reliable way to authenticate their products, which, in turn, can increase the attractiveness and value of the genuine items.
Additionally, this technology allows customers to easily give away or resell their products, further strengthening the investment value of these luxury goods.
“A digital certificate of authenticity is a huge, huge problem solver. At the same time, it helps us market the product and trace its origins,” explains Stefano Rosso, president of Maison Margiela and CEO of BVX.
The Aura Consortium’s blockchain technology allows customers to verify products by accessing a digital certificate of authenticity.
Customers can touch items such as Maison Margiela Tabi shoes, which contain embedded NFC chips, with their smartphone.
The chip then directs the phone to a website where the company provides a certificate of authenticity, along with information about the product’s origin.
Similarly, Loro Piana, under LVMH, has launched a service that allows customers to scan QR codes on labels to verify the authenticity of high-end garments.
The Prada Group integrates Blockcina into its Eternal Gold high jewelry line
The Prada Group has integrated blockchain tracking into its Fine Jewelry Eternal Gold line, which features certified recycled gold and ethically sourced gemstones.
Customers can tap the jewelery card with their phone to access the certificate of authenticity, information on the materials used and the item’s carbon footprint.
This not only verifies the product’s sustainability claims, but also provides customers with a digital record of ownership.
The implementation of blockchain technology in the luxury goods sector goes beyond verifying authenticity, according to Pierre-Nicolas Hurstel, CEO of Arianee, a startup that works with consumer brands to create blockchain applications.
It also allows brands to track product sales and repair history, providing customers with comprehensive information about their valuable possessions, he added.
Hurstel even said that consumers could soon have a digital wallet on their phones containing certificates for all their luxury items.
However, the rise of a stronger second-hand market facilitated by blockchain technology could pose a challenge to luxury brands that rely on exclusivity and scarcity to maintain their appeal.
“This is not good for brands that try to avoid ubiquity and sell the promise of exclusivity,” said Luca Solca, a global luxury goods expert and senior research analyst at Alliance Bernstein.