Korea's luxury platforms employ AI and experts on verification amid heating competition

Luxury fashion platforms in South Korea are leveraging on AI technology and outside expertise to ensure authenticity and credibility in the goods they market amid burgeoning demand from young rich and market foray by big technology and retailers.

Balaan, Korea’s leading high-end shopping platform, has announced Thursday that it would launch Balaan Connect, an intermediary platform between luxury brands and domestic importers. Through the system, Balaan will make upfront payments to overseas brands when they register their products with Balaan upon order booking by importers.

Direct trade could help stave off counterfeit product transactions as it will directly deal with foreign luxury firms. “We hope our new service creates a reliable environment for online transactions,” said an official from the company.

Korea’s No.1 fashion platform Musinsa has adopted a protocol to verify import brands to gain consumer trust.

Its gross merchandise value (GMV) in August and September at high-end mall Musinsa Boutique as result jumped 361 percent from the previous two months. It has been consigning verification work to Trade-Related IPR Protection Association (TIPA) and the Korea Appraisal Institute of Luxury Goods. It also trade directly with luxury brand headquarters to act as official sales channel, said an official from Musinsa.

The multiple verification process has started since the platform’s disgraceful defeat in a legal battle with Naver’s resale platform Kream. The court ruled that the shirts sold through Musinsa were fakes of a U.S. streetwear luxury brand Fear of God Essentials.

Trenbe has been employing AI assistant that can find the cheapest luxury goods available across the world.

Big retailers and platforms have also been tapping entry into the market. Luxury good platform Musit drew funding from CJ ENM. Naver and Kakao are said to be seeking M&A opportunities to fasten their foray.

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