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South Korea's online stores that sell expensive, high-end branded goods will be issuing non-fungible token (NFT) technology-based digital certificates on appraisal and warranty services to alleviate counterfeiting concerns.
NFT technology bans all risks of forgery or reproduction.
The digital certificates will contain the item’s specification, purchase records, warranty period, and other security information.
Online mall SSG.com began issuing digital certificates to vouch for official goods made by luxury brands and those brought in by other luxury brand sellers
Fashion retailer Shinsegae International Inc. also plans to introduce similar digital certificates that vouch for all items sold by its luxury shopping platform S.I. VILLAGE.
These warranty services are aimed at boosting demand for luxury goods.
Counterfeiting has discouraged online luxury item purchases.
Online shopping malls usually only go as far as appraising sample goods provided by importers or checking the reliability of the importers.
Consequently, the verification of the authenticity of luxury items sold is limited.
Trust, according to an industry source, is necessary to boost online sales, which digital certificates can provide.
