LVMH creates blockchain technology to track luxury goods and fight fakes

LVMH creates blockchain technology to track luxury goods and fight fakes

LVMH moët hennessy louis vuitton has developed a platform that uses blockchain technology to track luxury goods and stop counterfeit products from entering the market. the platform, which is called aura, will offer powerful tracking services to brands as well as tracing options to their consumers, giving them access to the lifecycle of products, including the design, raw materials, manufacturing and distribution.


blockchain is a database of time stamped information ‘blocks’ which can be used to record data that represents a financial ledger entry, or a record of a transaction. they can also be used to store other information including product data and proof of identity. these blocks are autonomously updated and stored online in a digital chain, visible for the whole world to see.


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using this same system, LVMH has developed aura as a way of authenticating luxury goods. aura will keep track of exactly who is purchasing each piece at the point of sale, and will even go beyond and into the used goods market, making it harder to trade counterfeit product as they wont be recorded within the certified blockchain system of genuine goods.


last year the global brand counterfeiting report 2018 revealed a growing problem in the luxury industry. in the USA alone, 2017 saw a seizure of $1.38 billion worth of counterfeit goods, a 10% increase from the umber of fakes confiscated in 2016.

images via @louisvuitton



‘the growth in global trade and technology has positively affected many markets across the world but along with that, it has some major adverse effects as well,’ states the report. ‘business organizations spend a lot of money, time and resources on protecting their brand and trademarks. but even after all the measures, the counterfeit market is booming rapidly.’


LVMH worked with microsoft and blockchain software company consensys to create the platform. the luxury conglomerate plans to implement the platform for louis vuitton and parfums christian dior brands.


discussions are underway to onboard the other brands that are under the LVMH umbrella. if they decide to implement the technology, they will have the option of choosing which features to implement, including disclosing the source of its materials or ‘providing tailored services and strengthening consumer loyalty.’


project info


companies: LVMH, consensys, microsoft

software: AURA

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