Luxury Goods Giant LVMH To Launch Blockchain Provenance Platform

French multinational luxury goods conglomerate LVMH is developing a blockchain platform for tracking its products.

Founded by Bernard Arnault in 1987, LVMH is one of the world’s largest luxury conglomerate. The company’s portfolio encompasses five sectors: wines and spirits, watches and jewelery, selective retailing, perfumes and cosmetics, and fashion and leather goods. Within its portfolio of 70 of the world’s most prestigious luxury brands, LVMH operates some of the most celebrated fashion brands in the business, including Louis Vuitton, Céline, Marc Jacobs, Kenzo, and Givenchy.

LVMH is reportedly working with ConsenSys and Microsoft Azure to develop AURA, a cryptographic provenance platform. The AURA platform, which is scheduled to go live in May or June 2019, will utilize Quorum, a permissioned version of the ethereum blockchain developed by JPMorgan.

“To begin with AURA will provide proof of authenticity of luxury items and trace their origins from raw materials to point of sale and beyond to used-goods markets,” a source involved in the build said. “The next phase of the platform will explore protection of creative intellectual property, exclusive offers and events for each brands’ customers, as well as anti-ad fraud.”

The source added that the platform will be initially launched with Louis Vuitton and Parfums Christian Dior. It will then be extended to LVMH’s 60+ luxury brands and other products from its competitors. AURA will run behind the brands that choose to use it instead of creating an app for the service.

“So if you are a customer of a luxury brand, you are not going to see AURA; you are going to see the Louis Vuitton app or the app of another luxury brand,” the source explained.

The firm also plans to donate all intellectual property (IP) to a separate entity, which will be owned by the participating brands.

“So Gucci, for example, could decide to join the platform and be a shareholder – in which case their claim to the IP would be as great as Louis Vuitton’s claim to the IP,” the source said. “That is the main difference between this project and the IBM Maersk project. which hopefully makes it much more comparable to Komgo, the trade finance consortium.”

Source: Read Full Article