Blueprint for Implementing Blockchain in Fashion & Luxury Brand industry for Brand Protection

Introduction

Buyers are always worried if they are buying an authentic product, especially when purchasing some luxury products. Luxury brands are fighting counterfeiters by investing high-tech solutions. Our solution for this is to combine blockchain technology with the life cycle of the physical item.

A smart contract can keep a record of every authentic product, including information about the product and the historical record of this product. For each product, it will be registered in the blockchain by the managers of the company, which provided proof of authenticity of this product; its ownership stored in the blockchain assures the buyer that he or she is buying an authentic product from the person who indeed owns it. To realize this, we also need some physical support. For example, The information for an item stored in blockchain should be linked to the item through serial number, chip or QR code, accessible through an app.

Impact of Blockchain in Luxury Brand Resale Market

With the rapid growth of resale sites that could take up a larger share of the market in the future, counterfeit merchandise is becoming a more serious problem in the luxury industry. Consumers are always looking for deals, but the resale market is filled out with fake goods. It remains to be seen whether the technology will sufficiently fend off counterfeit merchandise, but tapping into Ethereum technology could be a pathway toward other brands protecting their products and perhaps attracting consumers through transparency and customer perks, too.

Summary of Problems Faced by Industry 

• Retail outlets sometimes keep Brand Knock Offs and customers have a tendency to trust them.
• Sometimes the Supplier provides fake goods to Retailers.
• Luxury brands  have to take legal action towards factories that produce replica items.
• Customers are worrying about the authenticity of products when trading in a secondhand marketplace.
• Second Hand luxury platforms pay a lot in quality check and authentication experts to provide a safe and reliable platform for affluent consumers to buy and sell luxury items.

Download the Blueprint of Blockchain Solution to protect your brand