Luxury brand groups LVMH, Prada and Cartier owner Richemont have jointly developed a global blockchain system to help boost supply chain transparency.
The Aura Blockchain allows consumers to follow the entire lifecycle of luxury products.
LVMH said its brands Maisons, Hublot, Bulgari and Louis Vuitton were already using the platform.
The Aura platform will match a product ID to a client ID, allowing consumers to access the history of a product and proof of its authenticity at every step of the value chain, from raw materials to point of sale.
As blockchain information is held on a decentralised register it cannot be altered by a single party and is therefore considered to be trustworthy.
“Aura represents a new way for luxury brands to communicate directly to consumers, telling a unique story around the quality of their materials, craftsmanship and creativity, and strengthening the relationship between client and brand,” said the three groups in a statement.
The companies said issues like traceability, sustainability and authenticity were common to all luxury brands, so it made sense for competitors to work together to develop a shared solution.
The non-profit platform has been developed by Microsoft and ConsenSys technology and all luxury brands, not only the developers, will have the option to use it in return for a fee.
LVMH said watchmaker Hublot had already launched a digital e-warranty, which was stored in the Aura infrastructure.
Customers will be able to verify the authenticity of their watch via the system by taking a photo with their mobile phone.
LVMH managing director Toni Belloni said: “The Aura Blockchain Consortium is a great opportunity for our sector to strengthen our connection with customers by offering them simple solutions to get to know our products better.
“By joining forces with other luxury brands on this project, we are leading the way on transparency and traceability. I hope other prestigious players will join our alliance.”
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