Dive Insight:
Everyone loves a good deal, especially consumers with luxury tastes.
Research has shown that consumers are still looking for deals, but it's not clear how full-price retailers will adjust. While research from the National Retail Federation found that consumers are still seeking discount retailers, such as Ross and T.J. Maxx, the rapid growth of resale sites could take up a larger share of the market. The desire for designer deals also likely explains the growth of resale sites like The RealReal and ThredUp, the latter of which estimates that the resale market will reach $41 billion by 2022.
It remains to be seen whether the technology will sufficiently fend off counterfeit merchandise, but tapping into Ethereum technology could be a pathway toward other brands protecting their products and perhaps attracting consumers through transparency and customer perks, too. AURA will be available for other retailers to adopt, though it was created with high-end brands in mind, ConsenSys said in the release. Brands that want to use the platform for themselves have the option of choosing which features to implement, including disclosing the source of its materials or "providing tailored services and strengthening consumer loyalty."
"This model ensures that the possibilities of the technology can be made accessible to all, while maintaining the flexibility to address the specific needs of each luxury brand," the release said.