Counterfeit goods pose a significant threat to the global market, with estimates ranging from $1.7 trillion to $4.5 trillion in sales annually. When considering the secondary market in fashion and accessories, valued at approximately $120 billion, it becomes evident that authentication plays a crucial role in safeguarding both brands and consumers.
Entrupy, an artificial intelligence-powered authenticator, recently announced its partnership with TikTok Shop in the U.S. to provide authentication services for pre-owned luxury handbags. This innovative technology utilizes a combination of AI and microscopy to assess an item’s authenticity. By scanning an item using Entrupy’s proprietary device and app, microscopic images are collected. Machine learning algorithms then compare these images against a vast database containing records of known authentic and counterfeit products.
The AI system delivers one of two results based on the comparison: verification of the item’s authenticity or an “unverified” status. Each scan conducted with an Entrupy device contributes to enhancing the accuracy and intelligence of the system by expanding the database.
The authentication process generally takes between three and five minutes for most items, although in certain cases, it may extend up to an hour. Items from Hermès Premium may take up to 24 hours to authenticate. To ensure the AI’s effectiveness, Entrupy collaborates with data scientists, engineers, and research experts who continuously feed real-time information into the system. Since its launch in 2012, Entrupy claims a 99.1% accuracy rate for its authentication services.
The integration of Entrupy’s authentication services has been well-received by TikTok seller Kimmiebbags, who expressed confidence that her customers can trust the authenticity of their purchases. Entrupy’s founder and CEO, Vidyuth Srinivasan, emphasized the company’s mission to protect businesses and consumers from counterfeit purchases, stating, “We want to make sure that when buying luxury items, it is a smooth experience.”
Origyn, a Swiss foundation, is a pioneer in authenticating luxury watches and partnered with WatchBox, a prominent platform for certified pre-owned luxury timepieces. Origyn combines human expertise with a proprietary device featuring AI and ultra-high-resolution cameras to capture a 360-degree photograph of the watch. Additionally, it creates a digital certificate containing the watch’s biometric fingerprint, secured through blockchain technology.
While applying authentication technology to the secondary market offers a rapid solution, luxury brands are also taking long-term measures by integrating anti-counterfeiting strategies at the source. The Aura Consortium, consisting of founding members such as LVMH, Prada Group, OTB, Mercedes-Benz, and Richemont Group brand Cartier, focuses on pre-verifying items and blockchain-encoding garments, accessories, and jewelry at the point of creation. These items are assigned unique digital IDs, providing proof of authenticity.
These digital IDs offer added benefits, including information about the items’ origins and manufacturing processes, enhancing transparency and traceability. Encoded immutably via blockchain, the IDs are linked to the physical items through near field communication chips (NFC) for accessories like Margiela’s Tabi shoes or quick response (QR) codes for knitwear by Loro Piana. These certificates can be transferred when goods change hands, providing assurance for purchasers in the secondary market as well.
In the ongoing battle against counterfeit luxury goods, the integration of AI and blockchain technology offers promising solutions to safeguard both consumers and brands.
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