When people think of NFTs, their minds go to expensive digital images. Often purchased by people with more money than taste. Paying hundreds of thousands of dollars for a tired primate pixel that's artistically dubious may not be sound financial planning, but the underlying technology is exciting. Blockchain ownership will transform contracts, logistics and delivery, health records, and data security.
Luxury watch brands have taken note of this technology and are focusing on integrating it.In the industry
dramatic comeback is expected to achieve revenue of over the past few years $48.3 billion in 2023. Sales are dominated by a few major companies. The Swatch Group, which owns Rolex, Omega, Longines and more than a dozen other brands, and Richemont, which includes Panerai, Cartier, IWC and Jaeger Le Coultre, account for more than 60% of sales.
Watch companies have traditionally been slow to adopt new technology, relying primarily on established sales networks through authorized distributors rather than online sales. Watches are a special industry where customers often buy and sell on the secondary market, where well-maintained watches can be worn for decades.
Breitling has decided to embrace new technology aggressively by giving every new watch sold a digital ownership token. This is an important milestone in the history of NFTs. Leading brands are beginning to leverage these distributed ownership technologies for real-world applications. This could go a long way in transforming the industry and legitimizing blockchain technology in the minds of ordinary consumers outside of the cryptocurrency world.
Being able to track ownership, prove authenticity, easily check service records, and know if an item has been stolen is extremely beneficial to buyers. Breitling became the first luxury brand to take advantage of these blockchain records when it launched a digital passport service for all watches sold starting in 2020.The company is decentralized
Arianni protocoldeveloped by a French company that specializes in creating NFTs for luxury products.
luxury blockchain
Image courtesy of Breitling
Although Breitling was the first, other companies have recognized the potential and are getting in on the action. According to Ariani's website, the company has partnered with Panerai and independent ultra-luxury brand Audemars Piguet. Although the NFT program is not public, the companies have filed patents on digital property technology with the U.S. Patent Office and the European Union Intellectual Property Office.
Moët Hennessy Louis Vuitton, the $400 billion luxury fashion conglomerate that includes Givenchy, Tiffany, Fendi and Christian Dior, commonly known as LVMH, has partnered with Microsoft and ConsenSys and Ethereum-based services to create its version is about to launch.Authenticity certification could be a game-changer for an industry looking to stay ahead of the curve
Advanced counterfeiting operations.
Luxury brands can also leverage NFTs to engage with customers in new ways. Through NFT ownership, you can provide access to exclusive digital experiences, virtual events, or limited edition products. This creates a deeper connection between your brand and your customers, fosters loyalty, and increases brand value.
irreplaceable clock
I sat down with Antonio Carriello, Breitling's chief technology officer, to discuss NFTs, how the technology has transformed the company's supply chain, and the future of luxury goods.
return: What is the origin of this idea?
Antonio Carriello: I think the value of technology is to help consumers reach the first step in their journey. Blockchain with NFTs is a medium between brands and customers. This allows customers to be registered anonymously. You too can be a part of the brand's journey. And of course, the ultimate goal is to get closer to your customers. And the watch is more likely to be sold again. Therefore, to protect the interests of new buyers, it is very important to create a place where no one can change the actual information about the watch. This provides a level of security in the transfer of assets.
return: How does the process work?
Antonio Carriello: Since you have a wallet, you can transfer ownership of your watch with a simple one-click transaction. You must select the individuals or recipients of the selected transfer by email address or phone number. The idea was to build a zero-friction technology feature that was simple and very easy to use.
return: How important will these blockchain technologies be in the future of luxury goods?
Antonio Carriello: The value of an NFT is a physical product. NFTs are representations of physical products. This makes buying and selling these watches more economical. NFTs are the key to entering the realm of the luxury ecosystem.
return: Watch theft seems to be on the rise around the world. How does this technology address that problem?
Antonio Carriello: I think there are two advantages. If I'm a watch buyer, I know I'm getting a certificate that's digitally embedded in the blockchain. By checking this certificate, you will know if it was stolen and can back out of the transaction. If your watch is stolen or lost, you can immediately make an insurance claim using the information embedded in your wallet, greatly reducing complexity.
Image courtesy of Breitling
return: Will this technology become the industry standard for luxury goods?
Antonio Carriello: Yes, I think so. Once you master the technology and integration, you can quickly scale up. This will be the new normal not only for watches and jewelry, but also for all high-value items that have a second or third lifespan. From a cost perspective, NFTs are completely maxed out, so scaling the technology is just a matter of connecting the pieces from a technology perspective.
return: What are the logistical benefits for companies adopting NFTs?
Antonio Carriello: This has unified the way products are tracked and traced throughout the value chain. Therefore, one QR code is sent and encodes the feature, product, reference, serial number, and security level. Setup is very easy. Partners directly manage the transition from one state to another. This depends on your efficiency level, so you always have a complete understanding of where each of our products fits into your trade at any given time. So from a brand perspective, this is important information. It is important to build an ecosystem of intelligent technologies. Even with physical products, we live in a technological and digital world, so we need to keep communication channels open and be able to maintain a relationship with our consumers.
