Profit or prestige? Strategies for luxury brands to navigate the second-hand market using blockchain technology

Luxury brands are increasingly adopting blockchain technology to combat counterfeiting, yet they face a dilemma in addressing the market of second-hand luxury products. While a luxury brand’s involvement in second-hand sales could diminish its exclusivity, it could also increase the brand’s profits. Motivated by luxury brands’ concerns about venturing into the second-hand market while preserving their brand exclusivity, this study presents an analytical model to investigate how blockchain authentication impacts their strategies in the second-hand market. A distinctive feature of this study is the conceptualisation of aspirational value associated with the luxury brand. The authors' analysis reveals that premium and mass-market brands can improve brand exclusivity by enhancing second-hand product quality. However, luxury brands may diminish brand exclusivity if the quality of second-hand products is high. Additionally, luxury brands can maintain exclusivity by avoiding the second-hand market when using blockchain for authentication, provided that the authentication cost is below a threshold. Furthermore, their research sheds light on the strategies of various fashion brands (mass-market, premium, and luxury brands), contingent upon their aspirational values, to combat counterfeit products by deploying a blockchain-based authentication mechanism for the second-hand market.

• Record URL:
  • https://doi.org/10.1016/j.tre.2024.103726
• Record URL:
  • http://www.sciencedirect.com/science/article/pii/S136655452400317X
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/13665545
• Supplemental Notes:
  • © 2024 Elsevier Ltd. All rights are reserved, including those for text and data mining, AI training, and similar technologies. Abstract reprinted with permission of Elsevier.
• Authors:
  • Varshney, Umang
  • Karamchandani, Amit
  • Kundu, Tanmoy
  • 0000-0002-9117-6057
  • Kapoor, Rohit
• Publication Date: 2024-11

Language

• English

Media Info

• Media Type: Web
• Features: Appendices; Figures; References; Tables;
• Pagination: 103726
• Serial:
  • Transportation Research Part E: Logistics and Transportation Review
  • Volume: 191
  • Issue Number: 0
  • Publisher: Elsevier
  • ISSN: 1366-5545
  • Serial URL: http://www.sciencedirect.com/science/journal/13665545

Subject/Index Terms

• TRT Terms: Blockchains; Markets; Profits; Supply chain management
• Subject Areas: Administration and Management; Data and Information Technology; Finance; Freight Transportation;

Filing Info

• Accession Number: 01930481
• Record Type: Publication
• Files: TRIS
• Created Date: Sep 16 2024 8:56AM