LVMH, a corporation specializing in the production of luxury goods, has asserted that blockchain technology is essential for luxury companies to enhance the product lifecycle.
“When discussing luxury, you are dealing with long-term products, repair, and care,” asserts Franck Le Moal, the Chief Information Officer (CIO) of the luxury goods giant LVMH.
In addition, Le Moal, the vice-chairman of the Aura Blockchain Consortium, has suggested (1) that blockchain technology may play a part in accomplishing this goal.
In his speech at the Paris Blockchain Week held this year, he said:
“Customers may be provided with better maintenance and care services. Businesses can create a stronger one-to-one relationship with those customers by using digital passports supported by a blockchain.”
LVMH is Eager on Encouraging Other Companies to Access the Blockchain
LVMH began operations of its Aura Blockchain Consortium in the year 2021.
Since then, companies, including OTB Group, Cartier, and Prada Group, have joined the consortium to promote common sustainable trends in the fashion industry and, more crucially, assist members in improving the traceability of their products by utilizing blockchain technology.
Stefano Rosso, like Le Moal, the CEO of OTB Group’s web3 arm BVX, has a great deal of faith in the potential of blockchain technology.
He believes that, in the end, technology will affect how we engage with one another, socialize, interact, and consume.
According to Rosso, the choice to enter the space with other people was simple, especially when considering the limitless opportunities that blockchain technology presents.
One of the first organizations to become a member of the Consortium was OTB Group. OTB Group owns several well-known brands, including Diesel, Maison Margiela, Marni, Viktor & Rolf, and Jil Sander.
Challenges for LVMH
The challenge that LVMH faces in trying to persuade other luxury firms to participate in the initiative is a challenging one.
On the other hand, this may be the result of the highly competitive nature of the luxury industry or the individual pursuits of a number of different companies.
LVMH claims that the partnership already has 24 different brands on board, of which 21 employ non-fungible tokens (NFTs).
Despite this, LVMH may have come up with a fresh idea as part of its strategy to acquire additional brands in the near future.
In addition to being simply a collection of luxury products, Aura is also a private blockchain that is based on Quorum, which ConsenSys developed.
Last week, LVMH introduced a new function for its network called the “Multi-Token minter” (MTM) to lure additional businesses to join.
By using the MTM, members of the consortium can now develop smart contracts that can be implemented on Aura’s Blockchain or any other public blockchain, including well-known chains such as Ethereum, Solana, or Cosmos.
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