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Advance technologies needed to fight counterfeit: Qila 

Qila said that counterfeiting in the luxury goods market has forced the use of advanced technologies like blockchain and tokenization. These technologies help ensure product authenticity and protect brand integrity.

Luxury companies worldwide lose about $30 billion yearly because of counterfeit goods. This loss affects revenue and harms brand reputation and value. Moreover, the fashion and luxury sectors are at risk, with fake fashion items accounting for about 60 percent of all seized counterfeit goods worldwide.

“Brands are investing heavily in combating this issue, but traditional methods have proven insufficient. Blockchain technology and tokenization are game changers for luxury goods, offering solutions that were previously unimaginable,” said Sid Ugrankar, Founder of Qila.

For example, blockchain provides an unchangeable ledger that records every transaction and movement of a product through its lifecycle. For luxury brands, this means they can track each item from manufacturing to the final sale. This ensures the product is genuine and allows consumers to verify its authenticity easily.

However, setting up blockchain infrastructure is challenging and requires ensuring data privacy and security. Additionally, tokenization involves creating a unique digital token for each physical product, which acts like a digital fingerprint, capturing detailed information about the product’s creation and journey. Every item can be verified for luxury brands by scanning a QR code or using a dedicated app. Consumers can instantly access the product’s blockchain record, confirming its authenticity.

“By ensuring authenticity, enhancing transparency, and building consumer trust, these technologies are set to revolutionize the industry. As we move forward, continued innovation and adoption of these technologies will further secure the integrity of luxury goods and elevate the consumer experience,” added Ugrankar.

In India, 27 percent of consumers did not know they were buying counterfeit products, according to a 2023 report by the Authentication Solution Providers’ Association (ASPA) and CRISIL. The top segments where consumers encountered counterfeit products include apparel (31 percent), FMCG (28 percent), and automotives (25 percent). Following these are pharmaceuticals (20 percent), consumer durables (17 percent), and agrochemicals (16 percent).

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BRL Editorhttps://businessreviewlive.com
Business Review Live covers finance, technology, travel, lifestyle, and everything in between through exclusive interviews and analysis, market statistics, digital video, and an expanded array of content formats.