How to Prevent Theft of Luxury Goods?
The luxury market has been on an upward climb for many years; in 2017 it was worth approximately 1.16 trillion euros. The industry includes jewelry, fragrances, vehicles, accessories, and many more luxurious products. However, the rapid growth of the sector brings along a negative side — increased theft rates of luxury goods. According to reports, the theft of luxury goods during shipment costs billions of dollars to the companies.
In 2015, it was reported $22.6 billion worth of luxury goods were stolen worldwide.
The matter affects not only manufacturers, but everyone can be affected. These kinds of thefts are tough to fight because the high-value shipments are targeted by theft rings well in advance. This is one of the main reasons why it is challenging for businesses to protect their product along the supply chain. Many companies take the risk instead of taking advantage of the solutions available for preventing theft. Although, it’s dangerous and might do damage to the profit.
How to Prevent Theft of Luxury Goods?
Luxury goods thefts are painful for businesses, thus companies started to look for possible solutions to fight it. This is where new technologies came in hand, in particular, Blockchain technology. Everyone knows the use of blockchain technology for Bitcoins, nevertheless, the usage of blockchain is not limited to the currency system. It can be used for many non-financial applications as well. The blockchain is a decentralized mechanism that is accessed and shared by stakeholders. The information in the blockchain cannot be modified or deleted. You can only add information to the block.
Therefore, in case, any change is made in the information, it will be recorded and be visible to all the parties having access to it. This makes this technology more secure and transparent as it can track every type of transactions. Whenever the product changes hand, it will be recorded and added to the history of the product at every stage, from manufacturing to sale.
Accordingly, with the help of blockchain technology, it will be easy to keep track of luxury goods. Since it is a database ledger, you can see the origins of an item, which helps identify if it was distributed legally or stolen during the process. The ledger stores all the records; from the materials used in making the asset to the first owner. This would ensure the authenticity of luxury goods and provide information that the item is legally purchased.
Additionally, with the advancement of technology, consumers are becoming more conscious about buying decisions. The blockchain technology is a great way to provide information about the origin and track of the good. Consumers can check the authenticity of the luxury goods and see how it was produced. Furthermore, the system shows information if the asset was stolen or not. Every good has a serial number when a product goes missing from the shipment, it can be tracked down using the blockchain technology. Hence, it will make it difficult to sell the stolen items.
Overall, blockchain technology is a great way to prevent the theft of luxury items. It protects brands from stolen and counterfeited goods and ensures a more secure and transparent business.
LuxTag enables businesses and their customers to protect authenticity & ownership of their valuable assets by providing digitized certificates using blockchain technology. At LuxTag, we see a great opportunity to reduce the costs of current systems and bring a new service to market that has not existed before. Proving this is very well possible, we have created a blockchain-powered application to cater the market of anti-counterfeit, ownership tagging, track & trace, and manufacturer big-data, serving different markets with ready to implement solutions. As of today, the catered industries include Fashion and Apparel, Jewelry, Documents, Luxury, and Art.