Will Blockchain Change the Luxury Goods Market?
When one purchases a luxury product from the retailer, consumers may have questions concerning the origins of the product, and whether it is sustainably sourced. Although the specific retailer may not have an answer, there may now be ways for consumers to get the answers they seek in simple way: through blockchain technology. This transformative technology has the potential to change an industry.
One platform is looking to change the market by attributing a digital identity to luxury products, reports the Montreal Times, and which was originally reported by the New York Times. The company, called Arianee, is a Paris-based company that is working to create a serious number for luxury goods that identify the product’s origin and whether it is sustainable.
One question that arises, according to the report, is who is going to benefit from this type of blockchain – consumers or retailers. David Finlay, Fairtrade Foundations responsible mining manager, stated in the report that such a system might provide a company “more visibility, which is a good thing.” He also questioned without that intervention is “the most important thing for a miner.”
Peer Ledger, a Canadian technology started, answered in the affirmative, according to the report. The company has been working in Tanzania on a pilot project with gold miners by using a blockchain system that allows them to trade gold form specific mine pits.
This is not the first time that Arianee efforts in the luxury goods market have been reported on. In April 2019, the Business of Fashion reported that Airanee was working on a digital product certification that would be governed by the brands that joined. The digital product certification could help safeguard the authenticity of luxury goods, which is an ongoing problem in a market flooded with fakes.