Blockchain Technology can Change the Fashion Industry one Step at a Time
If there’s one thing that is constantly plaguing the fashion industry, it’s the ease with which people can create and sell knockoffs. Slight logo variations or labeling merchandise as homage to popular designers is enough to be considered a legal operation in many countries.
But this doesn’t only result in revenue losses for the designers. It often tricks buyers into thinking they have the real deal. This is one area in which blockchain technology can revolutionize the fashion industry and retail business.
Minimizing Counterfeiting
Blockchain technology can be viewed as the building block of intellectual property protection for designers all over the world. Yes. Because this is open-source technology, you don’t have to be associated with a highly reputable brand to benefit from blockchain technology.
But how would it work, you ask? — The concept is quite simple. Blockchain is all about maintaining a clear private or public ledger of transactions. Transactions that can be added to the ledger but not modified in any other way.
And, unlike traditional ledgers and recordkeeping, blockchain technology allows all users within the network to hold a copy of the entire ledger.
Because of this unique property, blockchain technology can be used to establish a proper chain of ownership for any piece of apparel or fashion accessory. This means that counterfeiters won’t be able to prove that they have original merchandise.
Of course, there’s a long road to the above potential. Today, blockchain technology is still largely confined to cryptocurrency. And yet, there are many platforms that have started to implement blockchain technology in their supply chains for the purpose of establishing a credible chain of ownership data.
Minimizing Waste and Maximizing Revenue
There are two ways in which blockchain technology can bring in more revenue. Limiting the amount of counterfeit goods is just one of them. Another way is by minimizing fabric waste.
Here’s how this works. This innovative technology of digital record-keeping can also be used to track shipments around the world. Much like how Walmart makes use of IBM’s blockchain platform to track shipments of food and other supplies.
By tracking shipments of materials, fashion labels can get a clear overview of their stock, including the usage and waste rates. Using the right type of platform can help redistribute the “waste”.
Other labels or freelance designers can also use blockchain-based e-commerce platforms to find the fabrics they need. This could bring in extra revenue for fabric manufacturers and suppliers, and it can lower the production costs of those that produce in smaller batches.
It’s a win-win for everyone.
Labels that are Already Ahead of the Curve
LVMH, which owns Christian Dior, Sephora, Louis Vuitton, and others, is one of the largest and most successful luxury goods and fashion conglomerates.
It’s also one of the biggest players to embrace blockchain technology as a means to track shipments. At the same time, the platform, which will be called “Aura”, will also be used to establish chains of ownership in an effort to combat intellectual property theft.
Although these weren’t the first labels to jump on the blockchain bandwagon, they are arguably the biggest names to be associated with this new technology. Talk about a stamp of approval from fashion experts.
The Fashion Industry is about More than Just Coming up with Apparel Designs
As you can see, blockchain technology is far from a one-trick pony. In the fashion industry alone, two of its uses can be game-changing for both reputable brands and up-and-coming fashion designers.
Besides, from the standpoint of intellectual property protection alone, blockchain deserves a chance. It’s perhaps more promising than all other methods of protecting one’s designs and hard work.
And, it could also minimize product waste to a certain degree. Utilizing blockchain technology for tracking excess inventory won’t eliminate waste, but that’s not to say that someone wouldn’t come up with an ingenious solution that proves otherwise.
Here’s the moral of the story. It’s worth embracing such emerging technology in a largely creative field like the fashion industry. Early adopters stand to gain a competitive advantage.
Primpy is a community-driven fashion market where end-users and businesses benefit from transparency and usability powered by the blockchain tech.
By bringing together technology, retailers, service providers and customers, Primpy becomes a go-to place for desirable fashion items, services, opportunities, tips and trends — tailored to users and businesses.
