Other than the success of cryptocurrency in the world economy, blockchain technology has also found its myriad use in multiple sectors. One such is the fashion industry. The underlying digital ledger is preferred for bringing transparency to the supply chains here. Apart from it, blockchain is also referred to for tracking the welfare of workers in the factory, plus, the transfer of digital fashion ownership. There are other areas where technology has influenced.
Rise of blockchain technology after Shanghai Fashion event in 2016
Akin to the apparel sector, blockchain has also gained massive traction ever since it gained importance all over. After its debut entrance into the fashion world in 2016 at a big fashion event held in Shanghai. Since then, this decentralized technology has found widespread use in the fashion sector, bringing much efficiency and clarity. Today, we are going to discuss the effects of the incorporation of blockchain into fashion.
How blockchain has refined the fashion industry
Below are some of the ways through which blockchain has revolutionized the apparel sector.
Resolving counterfeiting problems
Going to the Global Brand Counterfeiting Report 2018, the rates of online and offline counterfeiting of apparel, footwear, textiles, and cosmetics crossed around the $98 Billion mark. The spread of blockchain technology via the supply chain has proved helpful for customers in accessing information about the origin of the product. It has crossed this journey with the help of an embedded chip.
The anti-counterfeiting by Blokchi is also one example of how it has helped customers in getting information that is mandatory for them to discard the counterfeit products or those that come from the doubtful production units. The decentralized concept was experimented first time in 2017 by Martine Jarlgaard. The first garments with smart labels on blockchain were produced by this London-based designer. The recording of the step-by-step process of manufacturing was done on the label for owners and brands regarding verification.
Ability in tracing products (digital & physical)
Blockchain technology has proved its potential in fashion retail with its ability to track products, be digital or physical. The clarity in the tracking process of the supply chain has helped producers’ awareness of their value chain, plus ensuring them with the right third-party goods handoff and labeling of the final product. With the tracking of asset development, blockchain development firms have shown their capability to enhance the moral and continuous creation and utilization of a product globally.
Bringing productivity to the fashion industry
Currently, many stakeholders have been active in the line of production and distribution, which means records of the total number of individuals. The incorporation of blockchain technology in the apparel sector has brought the complete supply chain to the centralized digital platform. This saves the time that took weeks for checking the origin of the material and line of supply.
Another major advantage of this digital ledger is preventing the misuse of any record.
Cutting operational costs
With 3-fold advantages including reducing the counterfeiting, altering the supply chain, and better management of data, blockchain technology provides another benefit which is cutting down the operational costs. Apart from this, the digital ledger also benefits from the simple provision of merging surfaces for data storage across the service lines and operations.
Moving the ownership of digital garments
Witnessing the growing popularity of digital clothing, customers are given the option of purchasing digital garments. CryptoKitties is known to have initiated this trend. The action of obtaining digital goods has become the key area of earning money via decentralized applications. The transfer of digital garment ownership is made possible via blockchain technology. Hence, it is not at all possible to counterfeit the design.
Popular fashion brands that acknowledge the use of blockchain technology
Witnessing the growing rise of blockchain in various sectors, many big companies have been using it. These include Hugo Boss. This company has been using blockchain technology for tracking their goods in the supply chain showing the ownership and transfer among those who are part of the network.
LVMH is another big brand that has associated with top firms – Microsoft and Consensys regarding the launch of Aura, a blockchain-based platform. The main motive is to assure the reliability and tracking of luxury products. It provides safety to intellectual property, lifecycle tracking, evidence of originality, and lots more.
So this is how blockchain technology has brought the revolution to the fashion industry. It has helped in preventive measures via anti-counterfeiting. Other than the apparel industry, blockchain has made its influence in various other sectors including artificial intelligence, textile, automobile, media, entertainment, healthcare, hospitality, agriculture, banking, and finance. So other than being an underlying technology of cryptocurrencies, blockchain has had its widespread use.