Date Just customized by NIX Time using Vaultik's blockchain technology for digitization … [+]
When it comes to blockchain, luxury brands from watches to jewelry to leather goods are doubling down on its utility and leveraging the technology to make a real impact on their businesses.
One provider of such solutions is luxury fintech Vaultik. The platform combines a digital product passport with certificates of ownership and on-chain insurance (generally insurance against theft, loss, and damage), uniquely connecting ownership and authenticity. Three key element authentication.
It works both directly and via blockchain protocols, including Swiss-based Hedera. He works with insurtech company Avata to provide certificates of ownership and integrated insurance protection at both B2B and B2C levels. Premiums are paid by partner brands rather than buyers, using likes and store credits, which are a more cost-effective alternative to traditional payments. This is a “new revenue stream for brands,” says Pietro Novelli, co-founder of Vaultik and Meta alumnus of closed-loop setups.
This on-chain correlation between ownership and insurance results in “new customer acquisition, as well as increased customer loyalty and improved customer retention,” Novelli said. “When ownership is transferred in the secondary market, the insurance policy is transferred with it.”
Following a proof of concept with luxury brand hard-hitters like Burberry, Vortic will focus on both the primary and secondary markets, spanning luxury watches, gemstones and fine jewellery, leather goods and even furniture. Announced first wave of customer partnerships. Artificial intelligence (AI)
At least one major global fashion player will be announced in 2024, but the first projects to materialize will be those of small to medium concern.
“We're more nimble in terms of implementation,” Novelli said. forbes. “I can talk directly to the CEO of the company, so they're converting very quickly.” These are also a good way to demonstrate that the technology is scalable, he added.
Theft and counterfeiting will be areas of focus, along with traceability, transparency and sustainability, to maximize business impact and address some of the industry's biggest challenges.
luxury watches
An important use case for Vaultik's technology is the luxury watch market. The company has partnered with London-based start-up NIX Time to customize watches from established luxury brands such as Rolex, removing details from the dials and skeletonizing the internal mechanisms.
For NIX, Vaultik powers digital product passports with integrated insurance. The Passport includes each watch's original serial number, as well as authentication and additional warranty from an established London retailer.
NIX founder Jess O'Brien said the technology addresses a challenge facing its major customers: the prevalence of luxury watch theft in major cities. Novelli was himself a victim last year and revealed on Ashley McDonnell's Tech Powered Luxury podcast that the experience inspired him to incorporate an insurance element into his products.
BBC journalist Til Dhondi recently made a documentary hunt rolex ripper Exposing the modus operandi of London's organized gangs, data collected by the Watch Registry and shared with Dondi shows that watches worth $63 million were stolen in 2022, and in the first six months of 2023. 3,190 items were reported stolen in the month.
Dhondi hopes his film will raise awareness about the issue. “She's always at risk when she's walking around town wearing an expensive watch,” she said. forbes“So if you have an expensive watch, you can be a little more cautious.”
Daytona customized by NIX Time.
O'Brien agrees. “A lot of people end up wearing their Apple Watch and going out because they're too scared to use something expensive,” she said. forbes. “While the processes involved in traditional insurance contracts can be very outdated, they can be supported and enhanced by technology such as blockchain, which gives our customers the opportunity to own and enjoy insurance products. Masu.”
In the future, O'Brien is looking to evolve the partnership with Vaultik and enhance the client experience through NFTs to make it “more exciting.”
secondary market
Blockchain is having a significant impact when it comes to secondary markets, and Vaultik has built an AI-powered algorithm that impacts real-time valuation of luxury assets for resale.
The company is entering the secondary market offering certificates of ownership and authenticity for Luxe Dressing, a luxury consignment shop in central London. These feature repairs by specialist partners and integrated liability insurance.
“We believe that luxury is timeless,” said Reina Kadouri, French entrepreneur and founder of Luxe Dressing. forbesHe added that the partnership represents “an evolution of luxury, where elegance and innovation meet.”
By integrating this technology into our business model, we will be able to provide an “unparalleled experience in the consignment space” and “digitally guarantee unique finds in our collections.” ” she says.
fine jewelry
Transparency of provenance is important when it comes to fine jewelry.
Veteran jeweler Amedeo Scognamiglio will drop a sold-out NFT collection with Exclusible in 2022, turning his namesake brand's quirky cameos into digital collectibles. Currently, he is partnering with Vaultik to insure both his digital product passport and his Menera, his eponymous Amedeo brand and his luxury jewelry brand Farawan. Rihanna and Jennifer Lopez are both fans.
He said the partnership addresses the need to ensure the provenance and quality of his work. forbes— “The ability to monitor the entire lifecycle of a piece of jewelry so that its integrity and originality are never in doubt.” For him, the insurance element integrated into the digital product passport represents “a real game-changer.” Masu.
As for the blockchain element, he added that this will provide new security guarantees to his brand's wealthy overseas customers. “It provides an enduring record of the reliability of our products, both in major markets and in resale.”
furniture and leather goods
Italian designer furniture and custom upholstery brand Superevo uses Polymex, a patented material developed in-house. Superevo uses Vaultik's technology to document the lifecycle of its products on the blockchain, increasing transparency and assuring customers of the provenance and uniqueness of their products.
The information will be accessible via an NFC chip, and the digital certificate will also include insurance for certain products. Ghisò is a similarly sustainable leather outfit. This boutique direct-to-consumer brand sources all of its materials within a five-mile radius of its factories in Italy's Tuscany region.
broader ecosystem
Of course, other more established blockchain platforms are already operating in this space, the most prolific being Aura Blockchain Consortium and Arianee Protocol.
But as Novelli argues, Vaultik's integrated insurance component is a key differentiator, so he sees such platforms as potential partners rather than competitors. “We can all play our part in the broader ecosystem,” he says.
