Cartier Parent Company Richemont To Track Luxury Goods With Blockchain
Slowly but steadily, blockchain technology is beginning to find relevance in many industries, including luxury goods.
Now, one of the world’s most significant manufacturers of luxury goods and owner of brands like Cartier, Alfred Dunhill Montblanc and Piaget has announced its intentions to embrace the technology in a bid to bring transparency to its supply chain.
Richemont announces its intentions to leverage blockchain technology
Richemont, the Swiss luxury goods manufacturing company and owners of Cartier announced on Thursday, July 12 that it would be using the innovative blockchain technology to track goods and materials and fight counterfeit.
Richemont hopes that implementing technology will help customers be ensured of the authenticity of their products and the materials used in making them.
Cartier is not the only company owned by Richemont.
The company also owns Alfred Dunhill – a men’s garment company, Montblanc – a writing apparel firm, Vacheron, Constantin, and Piaget; all high-end watch and jewelry manufacturing companies.
At an event hosted by the luxury company, Jin Keyu who was appointed as a board member of Richemont last year made the announcement.
In her speech, Jin Keyu, a renowned economist and associate professor at the London School of Economics (LSE) said that Richemont plans to use the blockchain technology to control all the “parallel markets.”
“As Cartier’s parent company, we (Richemont) have recently decided to start utilizing blockchain to trace the origin of diamonds, rocks, and gold back to the mines or recycling factories. For all the watches we sell, we also hope to (use blockchain) to track their sources to validate their authenticity.”
Since the advent of blockchain, the technology has been used in solving multiple problems, and tracking of objects is no exception.
In March, computing giants, IBM announced that it had invented the computer tinier than a grain of salt which can be used to track the shipment of a product.
Luxury brands have always tried to provide customers with the best possible services, little wonder the drift Richemont’s drift to blockchain.
Richemont’s decision to implement the technology could be fueled by Chronoswiss; a fellow Swiss company specialized in watchmaking.
Chronoswiss recently released a limited edition of crypto-themed watches.
Richemont to use Arianee’s blockchain
Building a blockchain network from scratch would require a lot of work, time and resources. The process can also attract extra work which involves bug fixes in code and others.
As such, Richemont has opted for integrating a blockchain network from another company, Arianee. Thus minimizing the risk in building a blockchain network from scratch.
Arianee sells its brand as the first perpetual, anonymous and trusted record of all global assets, enabling a revolutionary link between owners and brands.
The Arianee network is based on Ethereum’s fully customizable blockchain (Web 3.0), as such, it makes use of the ERC-721 non-fungible tokens.
Arianee specializes in creating and offering blockchain platforms for the luxury brand. With the Arianee network, these brands can adequately monitor the movement of components used in their final products.
The same services Richemont announced it would be offering when it implements blockchain.
By using the blockchain technology, Richemont hopes the services it provides would take the transparency of its supply chain and its logistics system to the next level.
Blockchain technology has been used in the past to counteract theft and fraud effectively.
Jin Keyu Turns to Blockchain
During the speech, Jin Keyu also discussed her reasons for moving into the blockchain industry.
Keyu also revealed that she is set to join Ultrain, a Chinese based blockchain startup to contribute her expertise and experience on macroeconomics to build the company.
Keyu argued that blockchain projects have refused to learn from existing academic research in trying to build its monetary policies, and as such has faced stern roadblocks. Speaking on the effects of blockchain projects on economics, Keyu said:
“To me, blockchain essentially restructured the entire economic spectrum. … I think it’s extremely interesting because to solve this broad issue, we need not only microeconomic theories but also macro ones such as currency, monetary policy, and regulation”
Richemont’s adoption of blockchain through Arianee’s solution is a win for both companies and for the industry as a whole as we continue to see adoption accelerate.
Arianee will host its ICO “soon” according to its website. We will monitor the team.