MasterCard Launches Blockchain Solution to Reduce Counterfeits in the Luxury Goods Fashion Market
MasterCard partners with MADE and Fred Segal Sunset collection to place luxury designer clothing on blockchain technology to avoid counterfeit purchases.
Following the announcement of joining the launch of Libra cryptocurrency, MasterCard is taking up greater roles in the adoption of blockchain technology and cryptocurrency solutions. In a press release, the giant payment company announced they will be launching a tracking service on blockchain for luxury goods online purchases. The Provenance Solution built on blockchain is set to allow luxury online shoppers trustless and confident purchases of goods.
Through August 14th, consumers of the Rodarte collection from designers and sisters, Kate and Laura Mulleavy, will be able to track their luxury clothes, recorded on the blockchain. The brand’s flagship location is located at 8500 Sunset Boulevard in West Hollywood, CA. Store hours: Monday through Saturday, 10 AM to 9 PM and on Sunday from 11 AM to 6 PM.
Solution to Global Counterfeit Trade Market
In a global research report released in 2018, the total amount of counterfeit goods is set to reach $1.82 Trillion USD by 2020. Currently, the figure stands at $1.2 Trillion USD, with online counterfeit products accounting for 30% of the figure. Luxury goods and high-end fashion goods account for $98 Billion USD – $30 Billion USD from online shopping.
The recording of luxury goods is set to reduce the number of counterfeits and value lost for companies by providing a clear record of the product from the factory to the stall. The Provenance solution will allow customers to shop the limited-edition pieces of the Rodarte collection and find the journey of the brand by scanning a QR code on the garment's tag.
For consumers who buy the item online, they can scan the QR Code from the comfort of their home, revealing all the information of the garment’s journey to their doorstep. The code further authenticates the materials used for the garment and other important information needed by the consumer.
Comments on the Provenance Solution
Speaking on the latest move to the fourth technological revolution, MasterCard’s, Executive Vice President, Digital Partnerships, Sherri Haymond praised the partnership with Made and Fred Segal. She further remarked on the importance of blending art, fashion, and technology in uniting creatives – especially young females. Sherri concluded,
“Leveraging innovative technology solutions, we are able to tell the stories of the products consumers are buying.”
John Frierson, President of Fred Segal, was equally thrilled at the partnership with MasterCard. He said,
“Through this unique partnership with MasterCard and MADE, we’re excited to offer an innovative retail experience kicking off with Rodarte, one of our favorite West Coast brands.”
MasterCard’s increasing influence in the field of blockchain technologies and cryptocurrencies is exudes confidence for investors in the field. The recent partnership with Nexo to launch the first cryptocurrency credit card that allows users to earn interest on borrowing and announcing new job openings in its blockchain wing is a clear example. The Provenance solution is yet another step towards a wider crypto community built around MasterCard.