In the luxury goods market, there are a number of problems that arise when it comes to buyers and sellers. From receiving accurate assessments to identify counterfeit products, blockchain technology has the potential to transform the world of luxury goods.
Friday Forbes noted the difficulty associated with fixing the exact price of luxury goods such as designer bags, vintage wine and liquor and luxury cars. Andrew Rossow, contributor to Crypto and blockchain, notes this difficulty:
Absent to pay a visit to an expert or use an authentication system of sorts, there is no way to be completely confident in the assessment. This is where the implementation of blockchain technology comes into force, which can make tremendous progress in this area.
Last January Forbes also reported an increase in luxury spending, despite economic uncertainties.
Tracing Luxury Goods
Rossow says that blockchain technology can address a number of problems in the luxury goods trade. For example, Rossow mentions the importance of counterfeit products.
Rossow devotes a number of points to his statements concerning the blockchain and the luxury goods market. For one, observe the promise of blockchain when it comes to verifying products by tracing authenticity:
At present, two different evaluation systems are used simultaneously: the value assigned by a merchant to an article and the value assigned by a consumer to an article. Unfortunately, these systems provide a subjective measure of value, in the absence of another mechanism to confirm their price.
Rossow went on to say that
The Blockchain can provide a system that can be used by both merchants and consumers to help validate and authenticate these luxury goods.
On the trail of fakes
Rossow states that the second advantage of the blockchain lies in its ability to effectively monitor the counterfeit status of a luxury item. He claims that counterfeit luxury products are one of the main sources of "destabilization" of the market. Rossow believes that the desire for trust between traders and buyers is a glue that can tie luxury to blockchain technology:
For the average consumer, it becomes very difficult to infer the authenticity of an object. Because? Loyalty. We want to trust the merchants we buy our products from. Prospective buyers must rely on sometimes dubious credibility traders to determine the authenticity of the assets they wish to purchase.
The implementation of this extremely desirable technology in the luxury market will draw on the help of the Millennial generation.
in August, Forbes collaborator Rachel Wolfson reported on a diamond valuation partnership between Rare Carat and the Everledger start-up.
What do you think of the potential of blockchain to change the luxury goods market? Do not hesitate to let us know in the comments below
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