Bringing in Supply Chain Transparency
Blockchain is a buzzword being used across every industry these days. It’s a technology that is overused but least understood. Let’s compare blockchain with a “Google Spreadsheet”. When the link to a spreadsheet is shared with many people, everyone can access it. However, nobody can edit it. Blockchain works in a similar way. Each time a new piece of information is added, it gets linked to the previous information and the spreadsheet gets updated everywhere and reflects on everyone’s computers. Now that you’ve understood what blockchain does, let’s look at the definition.
What is Blockchain
Blockchain is a digital decentralised, distributed and public ledger. It is an advanced data mechanism that allows transparent information sharing within a business network. All the information is securely linked together.
Now you’re probably wondering what role does blockchain play in the fashion industry and how is it relevant?
Blockchain brings about enhanced supply chain transparency. It helps the end-user understand the origin of their clothing and how it has been sourced.
Blockchain is Reshaping Fashion Supply Chains
Today’s fashion consumers are eco-conscious. They want to know the origin and authenticity of the product they’re purchasing. They also want to know how the product was manufactured and whether the entire process was ethical.
Blockchain was once synonymous with cryptocurrencies. In the fashion industry, it helps brands and manufacturers achieve transparency. Have you ever wondered how a garment is manufactured and how it reaches the shelves of a store. The process is often a complex one. It’s a mystery that includes multiple stages including design, material sourcing, manufacturing, distribution and retail. From a consumer point of view, every step might look smooth. However, in every step, there is room for error, miscommunication and misrepresentation. Blockchain gives retailers and end users enhanced transparency and traceability. Since the origin of the product can be traced, consumers can verify authenticity especially with luxury and high-end brands. It reduces the risk of counterfeit goods and grey markets. Blockchain is the answer to address the challenges in the fashion industry. With improved data management tools, efficiency is increased too.
Benefits of Blockchain in the Fashion Industry
A couple of decades ago, nobody cared about how their garments were made. As long as they were priced fairly, customers would buy them. However, today’s consumers are occupants of the internet and metaverse. They want as much information as they can get about a product. Here’s how blockchain is benefitting the fashion world:
Brand authenticity
Counterfeit fashion is a huge problem. First-copy articles look so similar to the original that one cannot even tell the difference. Unfortunately, this is costing the industry billions each year. Blockchain offers a secure and unforgeable record of a garment’s authenticity. It has the ability to create unique digital identifiers for each product, thereby ensuring its authenticity. Consumers simply have to scan the codes to verify the legitimacy.
Promoting sustainable and ethical sourcing
Back in the day, companies would cut corners and resort to unethical labour practices to produce cheap fast-fashion articles. However, blockchain has brought about more transparency. Consumers can access information regarding the origin of their materials, and understand if they have been ethically sourced. Every detail regarding the origin of the garment can be secured. From the origin of the raw material to the making and finished product, every detail can be verified. They can even trace the journey of their clothes from the cotton field to the store. Traceability surely enhances consumer trust.
Reducing waste and returns
When it comes to fashion ecommerce, mis-sizing is a common issue. Majority of the garments are returned if the size is not accurate. When blockchain is integrated with sizing technology, garments fit consumers more accurately. Chances of returns are significantly reduced. It also minimises waste in the fashion industry.
Improved efficiency in the apparel industry
The number of stakeholders involved in the production and distribution line of the apparel industry is large. Blockchain brings the entire fashion industry under one centralised, digital system. It improves efficiency and product tracking, and helps the consumer identify the material origin and supply chain.
Reduced operating costs
Supply chain efficiency reduces operating costs. It allows better data management and reduced risk of counterfeiting.
Conclusion
In today’s world, transparency and trust are paramount. The entire fashion industry rides on it. The use of blockchain in the fashion world is still in the nascent stages. The use-case will only continue to improve and it will further empower the industry as a whole. With more brands switching to ethical sourcing and manufacturing, we can look forward to a future where every garment comes with a story and consumers can make more conscious fashion choices.
If you’re someone who wants to revolutionise a brand in the fashion marketplace, consider pursuing a Masters of Fashion Management course. You can expect to learn conceptual design thinking, design processes, sustainable manufacturing and the role of ecommerce in fashion. The course aims at helping individuals understand fashion from a business perspective.
