Blockchain you may think is one of those hyped terms used at seminars, well guess what? It is already altering the landscape in the luxury sector in a very significant way. Whether it is Gucci, Louis Vuitton, or a small, exclusive luxury watchmaker like Breitling, luxury is rushing to adopt blockchain technology and not without reason.
Why? Well, luxury industry is all about exclusivity, trust and authenticity; three things that blockchain was virtually designed for. It is now time to look at how blockchain is turning the spotlight on the world’s most elite brands.
Authenticity at Its Core
Envision this, you are purchasing a limited edition Birkin bag from Hermès. How do you know it’s legit? Piracy is at its worst, and fake products are not just substandard versions of the original products; some are almost perfect replicas. This is where blockchain comes as a superhero.
Brands can use blockchain to develop unique codes that will guarantee that products are original and cannot be altered. Such certificates, which can be recorded in distributed databases, cannot be forged. For instance, the luxury watch manufacturer Breitling releases digital data for its watches on a blockchain. Compared to the traditional method of checking the ownership of clocks and watches, the Breitling watch provides immediate credentials.
Another major brand that has also developed blockchain-based platform is the luxury giant LVMH that has established Aura to provide the service. Thus, the next time you flaunt that stylish Louis Vuitton bag, you should be able to show its authenticity has been backed by a blockchain.
Crypto Payments Are Changing the Game
Okay, let’s talk money. It might have crossed your eyes once in a while to find some luxurious brands accepting payments in crypto. Oh, yes, crypto payments are not limited to purchasing NFTs or donating to creators on Twitch now. Major retail outlets are accepting cryptocurrencies as a form of payment because, let’s face it, why wouldn’t they?
For instance, Gucci and Balenciaga, two giant fashion brands, have recently begun to allow the purchase of goods using mainly Bitcoin, Ethereum, and other cryptocurrencies in some stores globally. Another participant in the luxury sector was the e-commerce site Farfetch, which allowed its high-end clientele to purchase with cryptocurrency.
Luxury buyers are wise, tech-savvy and international, so the ability to pay with Bitcoin or Ethereum is logical. Also, it’s quick, safe, and doesn’t involve exchange prices for the buyers involved in the international market. Who wouldn’t want to select a Bvlgari necklace from the online store, when all they would need to pay with is their crypto wallets?
Fighting Fakes in the Secondary Market
If you are into vintage luxury or reselling you understand how challenging it maybe to deal with a seller. Is that Rolex up for sale at eBay an original one? Blockchain can do this for you here as well.
This is because buyers and sellers can easily track a product’s ownership and previous transactions through the blockchain. Currently RealReal and Vestiaire Collective are using blockchain to confirm that all the products they sell are genuine. While, WatchBox is already employing blockchain in secondary market for authenticating luxury watches.
Unlocking Digital Luxury
Now, let us consider things going online. We’re not only speaking of tangible items in this case anymore. Have you ever come across, NFTs otherwise known as non-fungible tokens? Non-Fungible Token Art has taken the world by storm, specifically, fashion brands in Web3. Blockchain is also making ripples in the area of NFT.
So, let’s consider the fact that Dolce & Gabbana managed to sell a nine-piece NFT collection called “Collezione Genesi.” This is not art alone what we are witnessing is fashion, exclusivity and technology combined together. In the same manner, Gucci has launched NFTs and has developed real/virtual experiential environments in Roblox.
Just like in real life, think of wearing Gucci sneakers or holding Chanel bag in Metaverse with the same designing but virtually for our avatars. Blockchain makes this possible by making the digital assets, unique, and distinguishable from each other.
Personalized Experiences, Powered by Blockchain
Luxury is not just a product, it can be a service, a feeling, or even a touch, an experience. Moreover, with help of blockchain luxury can continue personalization to the next level.
Imagine a loyalty program that includes your preferences, your history of purchases, and your elite status all written on the blockchain. For example, Cartier might use this data to give you personalized invitations to special events or an advance opportunity to look over certain items you’d like. Rather than searching for a loyalty card or using vague descriptions to a salesperson, all about the individual’s preferences is available at one button touch.
A Glimpse into the Future
So, where’s all this heading? Don’t consider blockchain as the latest fleeting hype for luxury brands, it is evolving into the very essence of their digital identities. Whether it is to ensure the authenticity of a bag, to check out with cryptocurrency or to gain ownership of a luxury NFT, the future of luxury and BlockChain is bright.
