LVMH uses blockchain for luxury goods traceability
Written by Hannah McGrath
The luxury conglomerate in charge of Moet Hennessy – Louis Vuitton (LVMH) has announced a collaboration with Microsoft and ConsenSys to develop blockchain technology to track and trace high value items.
The three companies will collaborate to produce AURA - an Ethereum-based technology that utilizes Microsoft Azure - across its brands, including Louis Vuitton and Parfums Christian Dior.
The platform is aimed at helping customers to trace the product history and provide proof of authenticity of their luxury goods, from raw materials to point of sale, with added value for verifying goods on second-hand marketplaces.
Louis Vuitton first started developing the AURA project in 2016, as part of its traceability programme Track & Trace.
AURA will enable all participants in the creation of a luxury item, from design, raw materials, manufacturing and distribution to track its stages through the product life cycle through blockchain technology.
At the time of purchase, a consumer can use the LVMH brand’s app to receive the AURA certificate containing all product information, which is stored on a blockchain ledger.
The certificate then provides the customer with a single source of decentralised information for the consumer, ensuring authenticity of the product and providing details on product origin and components - including ethical and environmental information - instructions for product care, and the after-sales and warranty services.
Brands invited to participate have flexibility in designing the capabilities of AURA, with choosing to focus on the sourcing of raw materials, whereas others may focus on providing tailored services and strengthening consumer loyalty.