Luxury goods cater to human “Self Esteem” made famous in Abraham Maslow’s theory of “Hierarchy of needs”. For the longest time human beings have yearned for social status. Manufacturers have created luxury products just for them. Gucci ladies bags, Hermes Silk Scarves and Ties, Louis Vuitton travel bags, Salvatore Ferragamo Men’s Shoes, Jimmy Chu’s Women Shoes, Chanel Perfumes, Brook Brother Shirts, Burberry ladies Coats etc. are the most well known global luxury brands.
This is a low to medium growth but highly profitable industry. This industry has withstood vagaries of global financial markets. Unfortunately, due to demographic shift in Europe, some of the leading luxury brands started outsourcing production to countries like China, Vietnam etc. instead of traditional vendors in Italy, France, Spain & Portugal. This has led to fake luxury goods being produced in Asia and exported all over the world.
World Trade organization estimates the value of brand counterfeiting at around US$500 billion annually. In China, the counterfeit goods market represents 15-20% of all production. The biggest loser is Luxury product segment.
At CPIGS, we believe keeping record of Sales, Service and Resale based on products random unique numbers and dynamic QR Codes on blockchain ledgers shall help preserve product integrity and brand equity.