Since 2012, Louis Vuitton has been committed to tracking the supply chain, especially of its diamonds, thanks to RJC technology and relying on the so-called Kimberly process, which is a system to know if diamonds come from legitimate resources and not involved in conflicts.
In addition, for some time now, the company has also decided to track its products with blockchain, in order to be certain of the steps in its supply chain.
Louis Vuitton: the use of blockchain to combat counterfeiting
To do this, Louis Vuitton created the Aura blockchain, developed in collaboration with Microsoft and ConsenSys to track the lifecycle of luxury products, preventing counterfeits.
Regarding counterfeits, in fact, according to a study by Love Money, Vuitton bags are one of the products most prone to illicit imitation.
In August 2020, Chinese police had arrested as many as 62 criminals involved in the counterfeiting of more than 2,000 bags, valued at $14.6 million.
Overall, the luxury goods resale market in 2021 was valued at $32.61 billion and is likely to reach $51.77 billion by 2026.
Louis Vuitton and the use of blockchain
This is what the blog post reads in reference to Aura’s use of blockchain:
“Debuting for the LV Diamonds Collection and in keeping with the Maison’s legacy of innovation, Louis Vuitton presents the first-ever secure digital diamond certificate. A cutting-edge solution for diamond traceability and responsible sourcing, this transparent, unalterable digital certificate uses Aura blockchain technology to store each stone’s unique characteristics, provenance, and journey, guaranteeing the safeguarding of this data indefinitely.”
Specifically, this blog post discusses the supply chain of diamonds, from quality control to cutting and cleaning, to assembling done by Italian and French artists.
Louis Vuitton in the metaverse and NFTs
In addition to blockchain for tracking, Louis Vuitton is also involved in the use of the metaverse and NFTs. According to a September 2022 study, it is one of the most popular brands for adults in the metaverse.
As for Non-Fungible Tokens, Louis Vuitton had launched in August the game app “Louis: The Game,” in which it was possible to go on adventures in which players were on a mission to educate themselves about its 200-year history in exchange for NFT rewards.
In addition, the company had recently further developed the game, adding NFT raffles.