Several academic works declared that the industry of luxury goods annually loses approximately US$ 12,000,000,000 due to a very high level of counterfeiters. There are several applications of Distributed Ledger Technologies in the luxury goods market.
- Unconditional transparency and elementary verification of authenticity. Blockchain technology will give manufacturers and retailers the ability to track the entire product life cycle with privacy protocols that protect customer confidential data. Also, blockchain platforms will help to protect the global market from counterfeiters and fraud too.
- Liquidity for the jewelry market. It is a fact that re-selling diamonds brings 45-50 percent loss of market price due to low levels of liquidity on the secondary market. Blockchain provides new opportunities for solving this problem.
Such companies as Christian Dior, Louis Vuitton, Loewe, Marc Jacobs, Céline, Kenzo, Givenchy, Moët & Chandon, Dom Pérignon, Veuve Clicquot, Ruinart, Krug, Mercier, Hublot, Zenith, Bulgari, Chaumet, Fred, Tiffany & Co (part of the French conglomerate Moët Hennessy Louis Vuitton), Ailsa Bay, Ulysse Nardin understand the benefits that blockchain can provide to their companies, and bring the superiority over other competitors. They have already implemented blockchain technology into their firms. Summing up,as Forbes journal has claimed, the mass introduction of blockchain technologies will occur in an interval of 4-7 years. The savings from this technology are significant; with a US$ 1 investment, you can get savings of up to US$ 20.
The Benefits at a Glance
- Simple verification the authenticity
- Re-selling jewelry
- Communication of brand and customer with protecting private data of second one
- Ownership traceability in the supply chain