The market for luxury goods has grown into a global force. Blockchain luxury chain-of-custody systems could be the answer to major headaches for people that want the best that money can buy. Blockchain luxury platforms could track a variety of goods, and make sure that people aren’t being conned with a counterfeit.
There was a time when a bogus Louis Vuitton purse or Rolex watch was easy to spot as an obvious fake. Now the vast majority of consumer goods comes from Asian factories. It doesn’t matter if it is a cheap no-name brand bag or a real Hermes jacket. Chances are, it came from a factory in Asia. Some of the fakes look as good as the originals, to an untrained eye.
Blockchain luxury chain-of-custody would make the industry safer
A Blockchain luxury chain-of-custody platform is a perfect fit for this problem and takes up where the company’s internal safeguards leave off. Many consumers don’t know that the same factories that produce luxury goods produce other products as well. Sometimes they could run their lines when a luxury brand isn’t watching. A dishonest Asian factory would mean products that are the same as genuine, but without the oversight of a luxury manufacturer.
Blockchain luxury chain-of-custody would empower both a luxury brand and the people who love their products. In the world of high-end jewelry, the stakes are even higher. A single diamond can be worth tens of thousands of dollars, if not more, and most people couldn’t tell a great diamond from a good one.
Bruce Cleaver, the CEO of De Beers Group, explained why the world’s largest diamond company is implementing a blockchain luxury platform in a statement, “Diamonds hold enduring value and represent some of life’s most meaningful moments, so it’s essential to provide assurance that a diamond is conflict-free and natural. By leveraging blockchain technology, we will provide an additional layer of assurance to consumers and industry participants, with every diamond registered on the platform having a record as everlasting as the diamond itself.”
Big money in play
It is the responsibility of a luxury merchant to make sure their customers get the quality they are paying for. The industry that supports them is also responsible, which is probably why the Gemological Institute of America (GIA) partnered up with Chow Tai Fook, who is one of the largest jewelers in Hong Kong.
Tom Moses, the executive vice president and chief laboratory and research officer for the GIA, commented on how important security is to luxury consumers, “Securely linking T Mark customers to their diamond’s grading information through the use of blockchain is an important step to enhance consumer trust.”
Many luxury products could be protected by a blockchain luxury platform that ensures high-end goods are kept track of. Once a customer buys a luxury product, it could increase in value. A blockchain luxury chain-of-custody platform would also help to keep fakes that are made to imitate classic luxury products at bay. The market for blockchain luxury chain-of-custody platforms will probably grow as counterfeit goods become even more widespread.
Nicholas Say was born in Ann Arbor, Michigan. He has traveled extensively, lived in Uruguay for many years, and currently resides in the Far East. His writing can be found all over the web, with special emphasis placed on realistic development, and the next generation of human technology.