Sunday, November 4, 2018

Revolutionizing Fashion Through Blockchain

Blockchain has taken the world by storm and it has proven that it is here to stay. The technology behind its distributed ledger and decentralized system was initially applied in the finance and banking sector, however, with the potential it holds and the ways it has been applied, Blockchain is now expanding to revolutionize many other sectors.

The fashion industry, in particular, has shown an inclination towards adopting new technologies with the rise of competition, however, nothing has been as revolutionizing as the different applications of the Blockchain technology on the industry.

Product Authenticity:
With the counterfeit goods market reaching over $450 billion, it is gradually becoming one of the biggest threats facing the global fashion industry. Not only is it stealing from the sales of the brands, it is also damaging reputations that brands have put so much effort and resources in building. However, with the use of Blockchain, fashion and luxury brands are able to put an end to this problem.

With the use of a unique serial number attached to each item at the point of production, blockchain technology is able to verify the originality of every item. Later on, when customers purchase the product, they are able to verify the authenticity and declare official ownership.

Supply Chain Transparency:
With the demand for sustainability in the fashion industry higher than ever, fashion brands are being pushed to become more transparent and ethical about their supply chain and ways of production. With the implementation of Blockchain, brands will be able to build customers trust and deliver transparency by providing products information, permanently stored in the database, through tracking and recording every step of the production process, from its manufacturer to its end user.

A best practice that has demonstrated the potential success of such implementation is the collaboration between Provenance and designer Martine Jarlgaard during the Copenhagen Fashion Summit in 2017. In their experiment, they placed a unique digital token on each garment that enabled every step of the production process to be registered and tracked through Blockchain on the Provenance app. This information was then made available to consumers by simply scanning the QR code on their item.

Retail Opportunity:
What Blockchain can contribute to in terms of retail is truly unprecedented in the fashion industry. With its decentralized system, every SKU produced by every brand would be accessible by any retailer worldwide. Hence, creating a universal pathway for retailers to report back directly to suppliers. This can be used not only to report stock levels but also to communicate customer feedback to suppliers/producers and optimizing production levels.

Environmental Sustainability:
Using blockchain to understand the complexity of creating a product can alter the perception of users regarding their consumption habits. Consumers will understand that with every clothing there is a story, they will be able to see how every item was made and shed a light on the craftsmanship and manpower behind it. This can eventually reduce the huge number of clothes that end up in landfills every year.

It is important to remember that blockchain doesn’t stop at the last point of production, it also records the end user who buys the product. Later on, they can transfer ownership to new future buyers, and those “new owners” will be able to access all information about the garment and its previous owners, as well as confirm its origins.

Seeing how the Blockchain technology can be employed in decentralising the fashion industry and curating new tools and methods from production to consumption, we, at Lablaco, truly believe in the potential of blockchain and the power it holds in becoming the new ISO (Standards Body) for the fashion industry, and we look forward to implementing this technology in the near future.

Courtesy :  Lablaco

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