Arianee Blockchain – A Solution To Luxury Counterfeiting. Arianee is a new blockchain solution to luxury counterfeiting and ownership which allows luxury brands to record all parts involved in the creation and sales of luxury products, in a ledger that cannot be altered, deleted or shut down.
Arianee Blockchain – Globalisation of luxury market
Recent technological advancements provide the foundation for corporations, in both fashion and luxury sectors, to expand their markets beyond their borders and move from local production to the global market.
However, the globalisation of luxury market has created an international competitive structure in which technological innovations have become the key success factor in all stages of production and distribution.
Also, the globalisation of luxury brands has reinforced their symbolic value in a sense that such brands have become a tool for consumers to acquire social status by associating themselves with particular social groups. As a direct consequence, ‘look-alike’ products commercialised at much lower prices have become appealing to a large segment of consumers.
Therefore, the expansion of international trade and emerging demand for personal luxury goods, in addition to the appearance of low-cost methods of production, and the development of new marketing tools, such as e-commerce, have made luxury counterfeiting profitable to a great extent.
Arianee Blockchain – The problem of counterfeiting
There are numerous reports and studies showing the catastrophic impact of counterfeiting on the global economy and society at large, stressing on the importance of finding effective solutions to the problem.
However, a study conducted by EUIPO (the EU Intellectual Property Office) in collaboration with OECD (the Organization for Economic Cooperation and Development) on the customs seizure for 2011–2013 signals a growing trend in counterfeiting production and consumption.
The study shows that international trade of counterfeit products participated 2.5% of world trade equal to $461 billion in 2013, where shoes, clothing, accessories, and leather goods were the most frequently seized categories.
According to European Commision, some of the negative impacts of infringing intellectual property rights relate to corporate revenue loss and reputational damage, products unusability, ineffectiveness and harmfulness, job loss, the violation of workers rights, and discouraging R&D investments.
Arianee Blockchain – Past attempts
As the e-commerce side of luxury businesses are growing fast, the development of an integrated anti-counterfeits system is in urgent demand. In this light, there have been past attempts to address the problem of counterfeiting. One such example is RFID (Radio Frequency IDentification).
RFID as one of the key technology in IoT (Internet of Things). It has been used to detect counterfeits inserted into the supply chain by assigning an EPC (Electronic Product Code) to each product, written into an RFID tag.
The tag-attached products shipped from manufacturers to the other parties in the supply chain, enable the receiver to interrogate RFID tags and add extra evidence data into them. By this mean, the next party is able to check the legitimacy of the supply chain and detect counterfeits by observing any inconsistency.
However, this method only works until the end of the supply chain and cannot guarantee the genuineness of products at retail stores. This is because the information of the RFID tags can be interrogated and cloned by anyone who has an RFID reader.
Therefore, the development of an integrated anti-counterfeits system that works also at the post supply chain stages is essential.
Arianee Blockchain – A new solution
A group of entrepreneurs and advisors with extensive experience in working with conglomerates such as LVMH, Kering, and Richemont, and the blockchain ecosystem has come up with a solution to the counterfeiting problem. Built on blockchain technology Arianee, is the first luxury protocol able to record, retain, and ensure the origin of all valuable products.
Arianee was designed to provide the first robust and secure protocol for trusted digital certificates and allows luxury buyers to track their valuable goods at postpurchase stages.
“In today’s digital world, buying valuable assets can be stressful due to the risk of counterfeits and stolen items. So, we have created Arianee as a solution and backed it with blockchain technology to make it decentralised, independent, and secure.” says Christian Jorge, co-founder and former SVP at Vestiaire Collective, and co-founder of Arianee.
Moreover, the safety and privacy of the relationships between items, owners, and brands in today’s complex and connected world, while ensuring the owner’s privacy, are past challenges that Arianee’s blockchain solution aims to solve.
Jean-Marc Bellaiche, former SVP of Strategy at Tiffany & Co and member of the Arianee team says:
“Because of the importance of gifting in Luxury, and the fast development of the second-hand market for luxury products, Arianee’s platfrom – in which luxury brands are able to communicate with the owner of a luxury product even if it wasn’t purchased directly from the brand – is a game changer.”