July 14, 2020

Market News

Breitling relies on blockchain certificates in luxury watch retailing

Luxury brands generate high margins, but the luxury business also has its disadvantages. Imitations gain quality – although this does not meet the standard of the original, it is often sufficient for the buyer. As a result, the companies concerned are looking for new ways to protect themselves against the growing black market. One of these companies is the Swiss luxury watch manufacturer Breitling. With the help of blockchain certificates, the company wants to counter the negative trend.

Blockchain certificate for Breitling watch

Blockchain technology is more than Bitcoin or cryptocurrencies in general. This knowledge is now penetrating the established providers on the market, who are increasingly relying on blockchain in their own environment. Breitling is one of these companies that is testing the blockchain in a first attempt. Breitling is one of the most traditional companies in the world, which is known for its luxurious automatic watches.

The company has developed a blockchain certificate for a limited edition of watches that are published under the name “Top Time” . This is a digital identity, which is located on a blockchain and proves the authenticity of the watch. The French IT service provider Arianee provides the technological development required for this.

Each model from the Top Time range receives its own digital certificate. By scanning an enclosed QR code, customers can download the certificate together with a suitable wallet – the wallet contains the watch’s authenticity guarantee. In order to prove the authenticity of the model in the event of a possible resale, information such as the serial number of the chronograph, all details and the activation date of the digital guarantee are in the wallet.

With this approach, Breitling ensures that each unique item is assigned to a unique owner. In the event of a sale, the owners can transfer the digital identity to the buyer – this is to ensure greater value stability.

New business models promote customer loyalty

A look at sales platforms like eBay shows that there are regularly people who want to part with one of your watches. The problem with high-priced luxury models: Proof of authenticity is not always easy. A blockchain certificate could solve this inherent problem of the luxury market.

Antonio Carriero, Breitling’s Chief Digital & Technology Officer, said that this new approach has also given the company a unique opportunity to build stronger customer loyalty.

“With Arianee and blockchain technology, we have a unique opportunity to strengthen customer loyalty by offering the highest level of customer care while protecting privacy.” – Antonio Carriero

According to company information, Breitling is the first manufacturer of luxury watches to use a blockchain certificate to prove the authenticity of a model. In addition, the company does not want to publish a single edition of the blockchain watches. Rather, Breitling is already planning further innovations that should drive its own business forward.

 

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Blockchain certificates as game changers in the luxury industry

According to the European Union Intellectual Property Office (EUIPO), piracy is a serious risk to the economy. The financial damage in Germany alone amounts to around 7.2 billion euros – the equivalent of 64,000 jobs being lost due to product piracy.

If we take a look at the entire European Economic Area, there is total damage of 60 billion euros. This corresponds to 468,000 jobs. Especially in popular holiday regions, street vendors use their opportunity to bring the cheap plagiarism to customers. In addition to Breitling, other luxury and premium brands are particularly affected. According to the EUIPO, a large part of the damage is caused by clothing and jewelry.

For this reason, the idea of providing an automatic watch from Breitling with a blockchain certificate is understandable. If this approach leads to customers increasingly investing in the products of the luxury brand, then other watch manufacturers such as Rolex, Tag Heuer or Hublot could also rely on blockchain certificates. LVMH, the largest luxury group in Europe, confirmed work on the AURA project last year. As part of the project, LVMH combats counterfeiting in the clothing industry. The reason is not only the damage caused by the loss of sales, but also a falling demand, which results from an apparently falling exclusivity. If other corporations and luxury brands decide to use the blockchain to protect their brands, we could see sales revenues rise sharply over the coming years.

Conclusion: Breitling and co encounter counterfeits with new technologies

More and more companies are discovering that blockchain technology can be more than cryptocurrencies. It will take a few more years before we see a complete decoupling from the term technology and the popular digital currencies, but the first companies in the economy are already beginning to anticipate this development.

It also shows that new technology can revolutionize entire economic sectors. The active fight against plagiarism is important for luxury brands in order to maintain exclusivity. I personally am pleased with Breitling’s approach, because it is an important step in the right direction for the company. If other luxury companies such as LVMH use blockchain technology to ensure that demand and customer loyalty continue to increase, then this should also have a positive impact on organic growth. One way to actively play this trend is to directly participate in the company through a trading platform like eToro .

The Breitling article focuses on blockchain certificates in luxury watch retailing appeared on the blockchain world .