Hardware-enabled SaaS firm Entrupy is expanding to the Japanese market.
The company uses artificial intelligence-based technology for authentication of high-end luxury products, particularly in the resale market. According to the company, expansion of the operations to Japan would give them an entry point into the Asia-Pacific region, as well as place them closer to “known regional hubs for counterfeit manufacturing.”
Entrupy has determined that Tokyo, where it will be based, is among the largest markets for luxury resale online. The company said it uses “deep learning algorithms and a proprietary database containing millions of microscopic images to verify the authenticity of physical products.” The system is comprised of a hand-held scanner and software application.
The company, which launched in 2016, said its patented technology is used by “hundreds” of secondary retailers and marketplaces to authenticate handbags and accessories from 15 luxury brands that include Louis Vuitton, Chanel and Hermès. To date, Entrupy said it has authenticated more than $30 million worth of inventory.
Vidyuth Srinivasan, cofounder and chief executive officer of Entrupy, said, “Over time, we’ve seen the rise of opaque supply chains, and when combined with the less-personal nature of online transactions, it’s an environment that has benefited counterfeiters while eroding consumer trust.”
In addition to luxury handbags and accessories, the company is developing databases and software that would enable verification of other frequently counterfeited products.
Heading Entrupy’s Japanese operations will be Noriko Asaoka. She previously launched Etsy in the local market and has led the music and video business for Amazon Japan. Her new role at Entrupy will include building local operations and establishing partnerships in the region.
Asaoka said she is already working with a number of e-commerce firms, as well as customer-to-customer marketplaces, major resellers and professional buyers of luxury goods.