Industry Opinion
Opportunities for Blockchain in the Fashion Apparel Industry
Transparency is the power that can be used to satisfy the manufacturers, suppliers, and buyers. The Gen Z people are more conscious than Gen Y and X. They demand transparency and sustainability in the brands. This is the main reason why most apparel brands are shifting from linear models to circular models.
The new ways can benefit in minimizing waste. As the apparel and textile industries are embracing technologies in coming up with sensor-equipped clothing.
The world of fashion, like many other sectors, is increasingly looking to blockchain technology to find solutions to issues like supply chain transparency, ownership, and efficient data sharing. Blockchain could help clothing makers demonstrate ethical manufacturing processes and can help luxury brands prove authenticity.
Most apparel businesses are enjoying blockchain as it becomes easier for them to get access to all the information. This has also benefited to narrow down the gap between the brands and consumers. Blockchain is a safe platform for communicating with buyers regarding products. With this brands can keep track of sales and payments too. The future of the apparel and fashion industry is evolving with the help of blockchain.
The concept of blockchain technology is already starting to be applied in the fashion apparel industry with applications related to sustainability and supply chain management offering transparency, traceability, product authentication, and inventory management. Supply chain management is the complex collaboration of suppliers, manufactures, distributors, dealers, customers, etc. to ensure a seamless production and delivery of finished goods.
Blockchain technology can boost efficiency and bridge the gap between suppliers and brands. Using this technology to track and trace products from raw materials to their end consumption can not only enable full visibility of the fashion supply chain but also maintain consistent data for all suppliers across the supply chain. Blockchain can help manufacturers and designers protect their brands against counterfeiting.
In the fashion apparel industry, the supply chain traces all parts of the process, from concept to customer. This includes the source of raw materials, the factories where those materials are made into garments, and the distribution network where the finished garments are presented and delivered to consumers. The chain also involves large numbers of people, including designers, manufacturers, merchandisers, retailers, and consumers.
Combined with RFID (radio frequency identification technology), which has already been used in many companies, blockchain technology helps track the finished product from the beginning of the product lifecycle through the distribution chain until the product reaches the consumer. This tracking information includes details such as location, date and time, shipment handling details, temperature, and condition of the package or product. Blockchain technology not only tracks whether the shipment was properly handled or arrived on time but can also help retailers find any products that were lost or damaged during shipping. Due to the structure of blockchain, this information cannot be altered, lost, or destroyed. The information saved in the blockchain is visible to all stakeholders, including consumers, retailers, and suppliers. These stakeholders can see the product source and process, which reduces the possibility that products are counterfeits.
Consumers can use an app to view the story of the luxury item, including the design and its raw materials, manufacturing, and distribution, as well as information about product care and warranties.
Since 80% of design and development is responsible for the subsequent supply chains, there will be an increasing emphasis of blockchain on design and development since it determines so many aspects of the supply chain. NE