Blockchain For Luxury Brand Business Expansion
Not only for crypto assets, but blockchain technology is also proving to be beneficial for the industry in general. Many industries have adopted this technology, ranging from online dating applications, banking, entertainment, to luxury brands taking the same opportunity. Several luxury brands are using blockchain technology to expand their business. You may have read about the blockchain technology marketing which was developed by LVMH and is billed as the world’s first luxury global blockchain.
So, what are the uses of blockchain technology in the luxury brand business?
Sustainable and Eco-Friendly Luxury Brand Production Practices
Blockchain technology has the ability to track any digital product or physical product through its production cycle. Transparency in tracking the supply chain allows producers to monitor the value chain that occurs during the production process.
That way, manufacturers can guarantee the right-hand transfer of production results to distributors. Blockchain can track asset development, record information, and display previous asset information records.
Therefore, the use of blockchain in this luxury brand can encourage ethical and sustainable production on a global scale. The transparency embraced by this technology allows the luxury brand to be accountable for its production to consumers and the wider community.
Improve Customer Satisfaction
As previously mentioned, the value of sustainability is an important value for customers and the global community in general. In one study, more than 66 percent of global consumers and 73 percent of young people are willing to pay more to buy products that have sustainable value.
By tokenizing physical assets to digital and consumers being able to see where the goods came from, luxury brands can use blockchain technology to increase customer satisfaction without compromising the luxury provided.
Increase Customer Trust
The average level of transparency of 200 leading fashion brands in the world is only about 21 percent that customers get. By using blockchain technology, these well-known brands can digitize and track the entire luxury goods production cycle.
In addition, some specific data points such as sustainability certification and environmentally friendly claims can be authenticated. This provides open access to the public and customers so as to give confidence that they are carrying out environmentally friendly practices by buying goods from these luxury brands.