How Blockchain is revolutionizing fashion industry
The introduction of technology in the fashion industry has been very fast in a short period. Today, no one denies that the line between the world of fashion and technology is getting thinner. Trends such as virtual and augmented reality, 3D printing, artificial intelligence, the Internet of things, and blockchain are already part of the daily life of the industry.
When we talk about blockchain, we are mainly talking about security and transparency. But blockchain technology can completely revolutionize the fashion industry, and that is the goal of today's article. For many, Blockchain technology represents the second era of the internet, changing the axis of the information web to a value generation network that meets the real need.
Can you imagine the impact of this on the fashion world?
Many bet that blockchain technology will bring about a change in the fashion industry, as everyone will be able to know the information related to the production chain of a piece. For example, LVMH is using blockchain technology for traceability and proof of authenticity of its products, to reduce counterfeiting. And Louis Vuitton has already filed a patent application for a blockchain for e-commerce in Brazil, designed for use by the entire luxury industry, with a powerful tracking service.
In other words, blockchain technology ensures the transparency and traceability of transactions that involve the entire production chain, from conception to the sale of a piece to the final consumer. The use of this technology is at the beginning, and of course, it will take time to reach the entire fashion industry. With time, it will solve problems such as the lack of transparency of information about the product and its production, and the guarantee of authenticity, all in just one click!
Applications of Blockchain technology in the fashion industry
Improved customer experience
Your consumers interact with their garments in a very different way from other generations. And because clothing means more than an element of identity or image, honesty is a key element that every brand must take into account. Blockchain offers opportunities to disseminate additional information such as videos, photos, and even personalized information and can be easily integrated with social networks.
Brands diversify their range of products through licenses, charging royalties based on the sales of products that are usually beyond their control. Periodic audits, loss of information, mistrust of figures or defaults, are the main problems that usually arise in this type of agreement.
Blockchain technology eliminates all the negative idiosyncrasies that arise in the relationships between the licensee, the brand, the point of sale, and the consumer. Each sale of the licensed product can be perfectly registered, how it is produced and distributed can be verified by the brand without the need to invest in additional costs.
More and more consumers are demanding sustainability from brands in their production dynamics. They not only confirm non-contamination but also conduct fair-trade and involving suppliers, who guarantee the quality of their employees' work environment and a fair salary.
Thanks to blockchain technology, the consumers can know the history of each garment, from its origin (design) to the detail of the origin of the materials, where it has been produced or how it has been transformed. This circumstance makes it possible to generate trust in all the links in the chain of the fashion system
Blockchain technology not only benefits customers and companies but the industry as a whole, increasing transparency and control in all transactions. For example, with the blockchain registration, you learn if your supplier uses organic cotton or recycled polyester, as disclosed by the company. And, also it adopts responsible practices, which reduce water consumption and the emission of pollutants in the environment.
As can be seen, this technology can make an unprecedented transformation in the fashion industry, with its increasingly demanding customers, in terms of sustainable values ??and attributes.