Happy new year to all of you!
2019 begins with the same spirit and the same desire to bring innovation into the world of luxury. In the world of Luxochain!
Despite the disruptive potential of the blockchain technology which has been demonstrated in various sectors over the past decade, it wasn’t until the launch of Luxochain in 2018 that the blockchain technology was first introduced to the luxury industry. Luxochain, a Lugano based Swiss company is a blockchain powered platform which aims revolutionize the luxury industry by taking up the fight against counterfeit luxury goods to guarantee the authenticity of original products in the luxury market.
How has the luxury market fared with counterfeiting so far?
According to The Global Brand Counterfeiting Report 2018, in 2017 alone, luxury brands incurred a loss of $323 billion to global online counterfeiting, with about 10 percent of that account – $30.3 billion precisely lost through internet sales alone. Also, according to reports by Assodigital, a blockchain news review site, Italian luxury brands happen to be one of the main victims who suffer from the counterfeiting and imitation of luxury products. As at the end of 2017, the global counterfeiting industry was valued at $1.2 trillion and it seemed like a market that would continue to boom unless measures were taken to upset it.
The market is ridden with fake goods and it is becoming more difficult than ever for customers to verify the authenticity of luxury goods. Riddled with fraudulent and unauthentic deals and customers are beginning to lose trust in luxury brands. Considering how expensive luxury goods are, it is only logical that customers are concerned about the authenticity of the luxury products they intend to purchase. The mission of Luxochain is to create a reliable and transparent system through which buyers can verify the originality of a luxury product before making the purchase.
How does Luxochain help to fight to counterfeit?
Luxochain provides an innovative anti-counterfeiting solution to both luxury brands and consumers of luxury products worldwide using a systematic and well-designed protocol. At the production stage, every original luxury product is allocated a unique secret code which is essentially an encrypted serial number known as a Block ID. Luxury brands can then register this unique serial code on the blockchain where it can neither be edited nor deleted.
The code serves as a digital passport of sorts and is used to scan the luxury product to ascertain its authenticity. The scan will reveal information about the products pertaining to the model, make and history across the supply chain from manufacturer to merchant. Once the transaction between buyer and merchant has been completed, the merchant will then transfer the right of ownership to the buyer, this new bit of information will also be entered into the database where it can not be altered. In summary, Luxochain helps luxury brands to offer their authentic and original products to customers while enabling the customers to verify the goods themselves.
Developments in 2018
In September 2018, via an article published by Forbes, Luxochain announced a token sale of LUXO token, security tokens on the platform reserved for institutional investors. A total issuance amount of 100 million LUXO tokens was made available for private sale which commences e on the 30th of October 2018 at a price of €0.05 per LUXO token. The LUXO token will grant investors and token holders access to the platforms wide array of revolutionary services as well as a share if the company’s profit when the then rises in value.
The Forbes article also affirmed Luxochain’s intention to employ machine learning and artificial intelligence to customize the shopping experience of online luxury shoppers. Here, predictive algorithms will be used to generate products that match the consumers’ preferences based on their online search queries.
In addition to the blockchain technology, the Luxochain platform is also integrated with unique technologies like Radio Frequency Identification (RFID), Near Field Communication (NFC) and Fingerprint Authentication (FPA). The system will utilize a combination of these technologies to fight the counterfeit market of luxury products and restore customer confidence in brands.
Luxochain is a platform that gives you access to authentic goods, a passport to original world-class luxury. Despite firefighting losses due to counterfeiting of products, in 2018, top luxury brands experience a positive incline of 6 to 8 percent, according to Blockchain Innovation. In summary, Luxochain is well positioned to revolutionize e the luxury industry by guaranteeing the authenticity of luxury products for every buyer while providing competitive advantages for the brands.