If you’ve ever seen a piece of luxury clothing being offered at a price that seemed ‘too good to be true,’ it may have been counterfeit, which experts say is becoming more and more common in the retail industry with a value of $450 billion. The growing number of ‘fakes’ has deterred many consumers from taking their chances, limiting industry growth and potential.
More than 14.3 million tons of donated American textiles help clothe people and families worldwide, but when it comes to luxury goods, prices aren’t at all consistent or reliable across retailers around the globe. But experts say the answer lies in QR coding technology and ‘Digital Assets’.
A Digital Asset is essentially a piece of virtual info that contains product information and history. It gives luxury goods a unique identity. Excluding Japan, the United States has the highest QR code usage rate than any other country, and more luxury outlets are starting to incorporate Digital Assets into their security technology protocol. LUXCHAIN is just one luxury retailer looking to solve the growing problem with counterfeit goods.
“Providing a Decentralized Verification Solution, the company seeks to solve the problem of product authenticity to combat the rising counterfeit goods market. The platform’s users and authentication experts (also known as verifiers) would first authenticate the product, then upload the product information to create the product’s Digital Asset which becomes published and secured on the blockchain,” writes James Nguyen on e27.
However, Digital Assets aren’t a one-size-fits-all solution to the issue; for Digital Assets to continue to grow and gain momentum, the technology needs to be even more accessible to luxury parties in the retail world. Experts say the most efficient way to do this is through QR coding technology and an imaging platform called ScanTrust, which adds an extra layer of protection to QR codes. The platform links each and every individual product to a distinct QR code that users can scan and receive relevant information instantly.
Ultimately, as this technology becomes more readily available, the luxury counterfeit goods scheme will slowly but surely come to a halt:
“The luxury industry will be able to look forward to greater transparency and security as the Decentralized Verification Solution becomes more prominent,” writes Nguyen. “Counterfeiters will find it hard to continue with their business, thus reducing the billions of dollars luxury brands lose to the illicit activity.”