Unprecedented joint venture wants to define luxury standards
Unconventional times calls for unconventional solutions. That could be the explanation behind the groundbreaking collaboration between three of the world’s biggest luxury conglomerates. LVMH, Richemont, and Prada Group are together forming the world’s first luxury blockchain consortium.
By OLIVER DAHLE
May 04, 2021
Named Aura, the blockchain consortium is founded to help brands with challenges that are common within the luxury sector. These challenges are both internal within the brands and challenges that are more customer-centered.
Aura will give brands and customers a better overview and understanding of the actual products. One of the platform’s biggest benefits will be that it will be able to authenticate products, but also ensure the provenance of the product. Though, the platform could be adjusted to a brand’s specific needs.
Even though Aura is the first blockchain consortium in the luxury sector, the technology has been used within luxury earlier and especially for watches. For example, Vacheron Constantin launched its blockchain technology in 2019, followed by Ulysse Nardin the same year, and last year, Breitling jumped on the bandwagon — just to name a few.
The earlier examples of blockchain technology within luxury have been done on third-party platforms or platforms with open-source protocols. This is something Aura wants to change. By acting as a gatekeeper, the blockchain will only be available for luxury and is aiming to set an industry standard that is requested by brands.
Aura is now being used by Prada, Cartier, Hublot, Louis Vuitton, and Bulgari, but there are ongoing conversations with other brands — both within the founding groups and externally — to join. Aura, which is a non-profit organization, will be open to all luxury brands, no matter size, sub-sector, or geographical location. The technological system is secured by technology from ConsenSys and Microsoft.
— The Aura Blockchain Consortium is a great opportunity for our sector to strengthen our connection with customers by offering them simple solutions to get to know our products better. By joining forces with other luxury brands on this project, we are leading the way on transparency and traceability. I hope other prestigious players will join our alliance, says Toni Belloni, Managing Director of LVMH.