1. The use of blockchain in the luxury industry: supply chains and the traceability of goods
- Author
-
Elodie de Boissieu, Chantal Ammi, Galina Kondrateva, Patricia Baudier, Métis Lab EM Normandie, École de Management de Normandie (EM Normandie), EDC Paris Business School (EDC), Département Management, Marketing et Stratégie (MMS), Télécom Ecole de Management (TEM)-Institut Mines-Télécom [Paris] (IMT)-Institut Mines-Télécom Business School (IMT-BS), Institut Mines-Télécom [Paris] (IMT), Laboratoire en Innovation, Technologies, Economie et Management (EA 7363) (LITEM), Université d'Évry-Val-d'Essonne (UEVE)-Université Paris-Saclay-Institut Mines-Télécom Business School (IMT-BS), Institut Mines-Télécom [Paris] (IMT)-Institut Mines-Télécom [Paris] (IMT), LITEM-IMO, and Département Management, Marketing et Stratégie (IMT-BS - MMS)
- Subjects
Luxury brands ,Supply chain management ,Traceability ,Transparency (market) ,Supply chain ,05 social sciences ,General Decision Sciences ,Disintermediation ,Grey market ,Counterfeit ,[SHS]Humanities and Social Sciences ,Blockchain ,Management of Technology and Innovation ,0502 economics and business ,Gray market ,Revenue ,050211 marketing ,Business ,050203 business & management ,Industrial organization ,Supply chains ,Information Systems - Abstract
PurposeMost businesses strive to control the efficiency of their supply chains; however, luxury firms face additional challenges from counterfeit, gray market and copycat products. Blockchain technology can address these issues and enhance firms' supply chain management, guaranteeing the traceability and origin of luxury products. Therefore, this study aims to investigate the utility and contexts influencing the implementation of blockchain technology to optimize supply chain management and prevent fraud in the luxury industry.Design/methodology/approachThe research uses a qualitative approach based on the grounded theory method. Data are collected by semi-structured interviews with 12 stakeholders working on blockchain applications in the luxury business sector.FindingsHighlighting the problems faced by luxury brands' supply chains, this study presents blockchain technology as a solution for disintermediation, traceability and transparency in the luxury goods sector. The constraints faced by luxury brands incorporating this technology into their ecosystem include the knowledge gap, the multiplicity of third parties involved in the production process and bias toward short-term returns on investment.Originality/valueBlockchains promote greater transparency and efficiency within supply chains, which builds consumer trust and improves brand revenue. Considering luxury brands' reluctance to adopt blockchains, this study suggests that luxury firms adopt a staggered implementation of private blockchain networks starting with a small number of third-party suppliers.
- Published
- 2021