In the rapidly evolving e-commerce landscape, there are several ways for consumers to intentionally and unintentionally access counterfeit goods.
Most importantly, the circulation of counterfeit goods often costs companies and consumers hundreds of millions of dollars annually. This fact has especially impacted high-end fashion retailers like Prada and Louis Vuitton. Due to the drastic increase in losses from counterfeiting, these fashion retailers are implementing blockchain technology using the Aura Blockchain, to increase the security and authenticity of the products they provide.
Up until the advent of Blockchain, the absence of the appropriate technology led to an increase in counterfeit goods in circulation as there existed no efficient manner of identifying and extracting fraudulent products from systems in place. Furthermore, in the global eCommerce market, there has been a rapid increase in international shipping – and consequently, lost packages. In fact, traditional shipping technologies are often inefficient and can fail to effectively track a product leading to loss of products and associated revenues.
Emerging technologies like Blockchain, however, now provide a solution to resolve these issues. As a data system, Blockchain can help companies authenticate goods leveraging its cryptographic system, assist in tracing products globally leveraging the Internet-of-Things (IoT), and, in turn, contribute to creating brand value, recognition and revenue.
Furthermore, using Blockchain, retailers can authenticate products they manufacture, store the information in a secure and decentralized database, and even instantly share some information amongst each other or with their suppliers wherever wanted. One practical use case of this blockchain system is that to ensure that the right product is purchased, consumers can upload photos of their purchased item on the blockchain, and in turn be provided with confirmation of whether or not such a product is authentic or fake.
Combining Blockchain with IoT, manufacturers will be able to locate goods real-time and track the distribution of products more efficiently. Together, these new innovative implementations will contribute to a regain and increase in revenues for the Fashion industry.
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