Blockchain Technology: A Growth Catalyst to the Luxury Goods Market

LUXCHAIN Foundation
Sep 5, 2018 · 2 min read

The luxury goods market for years has largely suffered from the flood of counterfeits that has continually hurt luxury brands. Buyers in the secondary market have grown more cautious and wary in purchasing these luxury products. Other challenges faced by the market include the absence of price transparency which leads to price discrimination in the market; and product data obscurity where buyers especially in the second-hand market have no access to product information to ascertain authenticity and other relevant details.

In a recent article published on Forbes, the author, Andrew Rossow makes a personal appraisal of how blockchain technology has contributed to solving these major challenges and remains the key solution to growth in the personal luxury goods market.

Rossow highlights how his journeys to different countries in the various continents have revealed the variances in the market such as the imbalanced pricing mechanisms where values assigned to luxury products vary between consumers and merchants. Also, the inability to recognize which item was authentic and which was fake posed a major challenge to him in purchasing luxury products in the various countries he visited.

Rossow maintains that blockchain technology is the only platform with the capacity to provide a transparent framework in the luxury market in terms of pricing and also product information. He also highlights the importance of having a framework to detect the authenticity of luxury products, a framework blockchain technology effectively delivers.

He mentions LUXCHAIN as one of the blockchain startups already harnessing the tech in creating Digital Assets of personal luxury products where buyers are able to track provenance, history, and information of the products. Digitizing luxury products on the blockchain provides a lasting solution to confronting the counterfeits challenge and also a channel for ensuring transparency.

The luxury goods secondary market has yearned for lasting solutions over the years and Rossow believes blockchain is that solution.

Visit Forbes for more details on the article.

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LUXCHAIN Foundation

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LUXCHAIN Foundation is a non-profit entity established in Singapore

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