How Blockchain Technology Is Transforming The Fashion Industry
Posted By Anirudh Bhardwaj | 10-Dec-2018
The influence of Blockchain technology in the worldwide market has grown exponentially over the years. While the technology was best known for facilitating Peer-to-Peer payments, researchers, industrialists, and tech enthusiasts are starting to realize the true potential of this state-of-the-art ledger technology. From Finance to Retail, from Healthcare to Supply chain and Real Estate, Blockchain seems to be unstoppable now, with new use cases arising more frequently than ever before.
In many of our previous blogs, we have talked about the use cases of Blockchain in Finance, Retail, Education, Supply Chain, and many different industries. This blog, however, will give you an out-and-out overview of how this distributed ledger technology could be used to transform the Fashion or Apparel Industry.
There was a time when apparel companies were more concerned about transparency in Supply Chains. Opacity in supply chains was considered a competitive advantage since it ensured that no one from the outside could gain insights over a company’s supplies and trade secrets. However, there has been a change in the picture, dramatically changing the perception of most people about transparency.
All thanks to the latest consumer trends and consolidation of decentralized manufacturing, everyone is more curious about where the clothes are coming from. So owing to the increasing consumer demands, apparel companies have no choice but to keep their customers aware of everything. And what else could be better than Blockchain to give your customers the kind of transparency they are looking for.
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The Blockchain Revolution
Apparently, the Blockchain technology has started to make its effect felt across the apparel supply chains and with other technologies like AI and 3D printing, some drastic changes are yet to come in the Fashion industry. As far as the Blockchain is concerned, it’s undoubtedly the most prudent solution to create a physical link between apparel, fashion accessories and their digital identities on a Blockchain. Each item in the apparel supply chain can be assigned a cryptographic seal or serial number (acting as a physical identifier) linking back to its digital twin.
This, in turn, brings transparency to the supply chain in such a way that every small change or movement reflects in the ledger which is visible to all the consumers as well as the apparel company. Apart from this, every small movement in the supply chain is updated on the Blockchain, creating a tamper-proof record that can’t be altered or deleted at any cost. This also helps in preventing counterfeit goods and accessories, thereby helping companies gain the trust of their customers.
When it comes to decentralization of entities, Blockchain is by far the most prudent solution that we have today. In every industry, it has proven its worth and fashion industry is no exception either. The fashion industry requires a change in business model today more than ever before and the advent of Blockchain will bring the much-needed sustainability, putting forward a stable, secure and transparent network where customers can rely on the apparel brands and the brands can rely on their suppliers for the authenticity of products.