Implementation process of Blockchain to solve the counterfeit problem in the apparel industry

Abstract

Counterfeit sales have been estimated to be grown by over 400% from 1990s. The value of fake goods seized by customs is estimated at 509 billion US dollars in 2016 up from 461 billion dollars in 2013 and represents 2.5% of the world trade. Footwear and clothing contributed to a whopping 38% of the total counterfeit market. Firms also spent enormous resources to prevent counterfeits. LVMH Moët Hennessy Louis Vuitton, the French luxury manufacturer reportedly spends 17 million US dollars annually on litigation costs combating counterfeits for its major brands Louis Vuitton, Dior, Celine among others. With Blockchain, the records are immutable and, therefore, the scope of data tampering is impossible except in the rarest-of-the-rare occasion of node collusion (when over 50% of nodes are incentivized enough to alter the data). Here we have a look at how the Blockchain solution will work.