Blockchain, the most cherished technology so far in the 21st century, has found its applications in almost all the industries. Each day, forward-thinking companies are transforming blockchain’s promise into business results. And Fashion industry is no exception.
Blockchain is bringing transparency in the fashion industry supply chains, tracking the welfare of factory workers, and transferring the ownership of digital fashion, among many other use cases. However, building and deploying enterprise blockchain solutions continues to be a larger challenge than any one business can tackle on its own. Therefore, fashion industry leaders actively seek a digital transformation partner to do so.
The Promise of Blockchain to the Fashion Industry
For manufacturers and consumers, the ease of tracking a garment right to the material for which it was made from, its purchase history online or in-store, has significant business implications. Blockchain can make it as simple as scanning a tag to find out what to buy and what to avoid. Moreover, the temper-proof nature of blockchain makes sure that this information is absolutely reliable. Turning these imaginations into reality is Blockchain’s promise.
How Blockchain is Changing the Fashion Business?
Solve Counterfeiting Issues - The Global Brand Counterfeiting Report 2018 estimates that offline and online counterfeiting of textiles, cosmetics, clothing, and footwear have reached about US$98 billion mark. Let’s say a seller claims to an end customer that a T-shirt is made with organic cotton. Is there a way to prove this claim unless the customer sees through the entire history of the transaction that happened between the cotton seller to the spinner to the weaver to the T-shirt maker to the customer, using the same organic cotton?
Blockchain, by being spread throughout the supply chain, helps consumers obtain information about the product origin and the journey it has taken through the help of an embedded chip. This helps consumers with the necessary information to reject counterfeit products from the ones that come from ethically questionable production units. The concept has already been tested by a few brands and has found good uptake in the industry.
Support Sustainability Practices - The potential of blockchain technology comes with the capability to track physical or digital products throughout the lifecycle. This transparency in the supply chain tracking process offers producers insights into their value chain, giving them the guarantee of a credible third-party goods handoff and final product labeling. Blockchain development companies, by tracking the assets’ progression, come with the potential to expand ethical and sustainable creation and consumption of a commodity on a global scale.
Enhanced Business Efficiency - At present, the number of stakeholders involved in a production and distribution line hold a number of standalone datasets about the supply chain. Blockchain, however, brings the entire supply chain on a centralized digital platform. This saves the weeks it would take to identify the material origin and supply line. This record cannot be lost, altered or destroyed once it has been added to the network.
When it comes to operational efficiency, the three-fold benefits of better data management, transparent supply chain, and lowered risk of counterfeiting, blockchain technology brings down operational costs to a great extent.
Convenient Royalty Tracking - Blockchain technology makes it convenient to track royalty payments. It does not just allow the designers to develop an unchangeable proof of creation, but it can also be used for creating and tracking trademarks, license designs in addition to royalty programs or sales originating through these designs.
Transfer the Ownership of Digital Clothing - Digital clothing is becoming increasingly popular. The ownership of the digital garment gets transferred through Blockchain technology, which in turn makes it impossible to counterfeit the design.
Blockchain technology, at the back of its credible operating system, enables the customers to look at and understand the complexity that it takes to bring a product to the market. This does not just help with changing their perception of value but also lowers the massive quantity of products thrown out within a year of usage. When embedded well, blockchain can help the fashion industry not just validate their intention to focus on sustainability and quality but also maintain the margins and revenues to keep them afloat, no matter how drastically the fashion trend changes.