A model shows off luxury watches at a Seoul department store in this file photo. (Yonhap)
SEOUL, Aug. 27 (Korea Bizwire) — Online stores that sell goods from expensive, high-end brands are competing over appraisal and warranty services to alleviate concerns over counterfeit items.
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.
The digital certificates will contain the item’s specification, purchase records, warranty period, and other security information. It uses non-fungible token (NFT) technology to ban all risks of forgery or reproduction.
Fashion retailer Shinsegae International Inc. also plans to introduce a digital certificate that vouches for all items sold by its luxury shopping platform S.I. VILLAGE.
These warranty services are aimed at boosting demand for luxury goods.
Consumers who have had enough of ‘open runs’ that involve waiting in line in front of a department store’s luxury hall for hours to buy high-end goods are choosing to buy them online, an industry source said.
Sales of counterfeit products, however, have been a constant factor discouraging customers from buying luxury items online.
Most of the luxury goods sold online are imported either by an individual or a different company.
Online shopping malls normally go no further than appraising sample goods provided by importers or checking the reliability of these companies, which causes a limit to verify whether all of the luxury items sold there are indeed ‘authentic.’
“Trust is what’s needed to increase online sales, and we believe digital certificates can do that,” an industry source said. “Those interested in engaging in second-hand transactions for luxury goods would want these kinds of services even more.”
H. M. Kang (hmkang@koreabizwire.com)
