How luxury brands are fighting fakes and winning trust
From proving authenticity to enhancing experiences, high-end brands are staying ahead with new tech
Luxury has always been synonymous with heritage and exclusivity – but today’s consumers are looking for more. They want innovation, transparency, and proof that their prized possessions are the real deal.
According to a new report from STORM, luxury brands are increasingly turning to blockchain to meet these demands.
One significant move in this direction is the Aura Blockchain Consortium, launched in 2021 by LVMH, Prada, and Richemont. This nonprofit initiative brings together top luxury brands on a single blockchain platform, designed to ensure product authenticity, traceability, and transparency.
Every luxury item receives a unique code on the blockchain at the point of creation. When a customer buys the product, they gain secure access to details like materials, origin, warranty, proof of ownership, care instructions, and even environmental impact.
This system builds trust and ensures transparency – tackling one of the biggest challenges in the luxury sector.
Here are three key ways blockchain is making an impact on the luxury industry.
1. Fighting fakes and building trust
Prada uses NFC chips in its jewelry to prove authenticity and share product details. Photo: Prada
Counterfeiting is a major threat to the luxury industry, with fake goods projected to reach $81 billion by 2026. Transparency is another weak spot – the top 200 luxury brands have an average transparency score of just 20%.
Blockchain helps address both issues by creating tamper-proof digital records that track a product’s journey from creation to sale. This enables customers to verify authenticity while helping brands build trust. According to a report by STORM, 87% of consumers want more transparency in supply chains – a demand blockchain is uniquely positioned to meet.
One key innovation is Digital Product Passports (DPPs) – blockchain-powered records that offer a product’s complete history and information. Aura provides tools for launching DPPs, allowing brands and customers to securely track a product’s lifecycle.
Prada, for example, uses DPPs for its fine jewelry, embedding near-field communication (NFC) chips that enable contactless data exchange. These chips are linked to a blockchain record, giving customers access to detailed and traceable product data.
Other luxury brands are also adopting blockchain for authentication. Last year, Rolex patented a blockchain-based system to combat counterfeiting. This innovation would create permanent, unalterable records for every watch, allowing buyers to confirm authenticity and track the history of each piece. If implemented, it could set a new standard for product authentication.
2. Elevating customer experiences
Tiffany & Co. ventured into NFTs with limited-edition digital assets that unlock customized CryptoPunk-inspired jewelry. Photo: Tiffany & Co.
Blockchain is also enhancing customer experiences. With non-fungible tokens (NFTs) – unique digital assets that prove ownership – customers can unlock exclusive experiences and perks, such as VIP event access, limited-edition products, and immersive brand interactions. The NFT market in the fashion sector alone could reach $1.46 billion by 2030, driven by the demand for digital ownership.
One notable example is Tiffany & Co., owned by LVMH, which entered the NFT space in 2022 with the launch of NFTiffs. This collection featured 250 limited-edition NFTs that could be minted and redeemed for customized CryptoPunk-inspired pendants, paired with a matching NFT piece. Only CryptoPunk owners could purchase these NFTs, showcasing how blockchain can blend digital and physical luxury, pushing the industry into a new era.
Beyond NFTs, brands are exploring tokenized experiences that offer different levels of engagement. This includes membership tokens, fractional ownership of luxury assets like yachts or estates, and exclusive access to unique experiences.
In 2023, Cloud Yachts made history by tokenizing its 94-foot-long superyacht – the first of its kind. Each SuperYacht NFT was sold for $500, granting buyers one Miami cruise on the yacht annually.
3. Making luxury personal
High-end fashion brands like Chanel could offer custom luxury items with personal designs stored securely on the blockchain. Photo: Unsplash / Laura Chouette
Personalization is crucial in the luxury market. Today’s consumers expect tailored experiences, with 71% saying they want brands to customize their interactions, while 63% feel disappointed when their expectations aren’t met, according to the STORM report.
Blockchain makes hyper-personalization possible without sacrificing privacy. It enables secure customer profiles that track purchases, preferences, and loyalty rewards while keeping sensitive data protected. Brands can use this data to create highly personalized experiences, from customized product recommendations to exclusive event invitations.
One potential application could be a high-end fashion brand offering tailored luxury bags where customers choose patterns, colors, or materials, and have their personal touches securely stored on the blockchain. In the automotive space, brands might use blockchain to maintain detailed records of custom modifications and maintenance, enhancing both transparency and resale value.
Loyalty programs could also get a blockchain upgrade, offering personalized rewards based on purchase history and engagement. Points could be transferable between partner brands, giving high-spending customers unique perks tailored to their preferences.
As more luxury brands embrace blockchain, the technology’s role in the industry will continue to grow. It is poised to become a cornerstone of trust, innovation, and digital integration in the high-end market.
