Blockchain traceability solutions are reshaping the fashion industry cycle
Blockchain traceability solutions will help fashion businesses track and control their supply chains with transparency, security, and reliability.
Fashion brands are looking for different ways to reach and impress their customers. It’s not just about designing and selling to customers something to wear to assert the position in the fashion world.
Many factors strongly influence the fashion industry trend: the increase in brand awareness, concern about the origin, product quality, and the environment-friendliness of the manufacturing process.
Besides, to accelerate the speed of bringing products to market, effective supply chain management is the key due to separate functional units. The application of technology in supply chain management is in the sight of both big and small fashion brands.
The emerging blockchain technology in traceability has recently been experimented on by several brands. Blockchain traceability solutions will help fashion businesses track and control their supply chains with transparency, security, and reliability.
Let’s find out how this technology will be “tailor-made” to fit each industry’s business.
1. Transparency and Trust are more crucial than ever
Starting in the 90s, many fashion retailers quickly caught up with the trend and moved their factories overseas to pursue lower labor costs. Since then, the supply chain has become more complicated and unclear.
Sustainability and transparency have become two central issues of today’s global fashion industry.
Fast fashion companies produce billions of garments each year to provide consumers with the latest trends. According to McKinsey, “more than half of all fast fashion items are thrown away within a year.” Such mass production creates two significant problems: a massive obstacle for fashion brands to ensure good supply chain management; improve the friendliness of fashion products to the environment.
As sustainable fashion is increasing day by day, it is necessary to find out the detailed information and require transparent information sources. Major fashion corporations are releasing a series of reports on eco-friendly ingredients and reusing and recycling old clothes for the fashion cycle. However, much discussion has emerged around these figures’ accuracy because spending on implementing those projects and reports comes from those firms.
Blockchain, one of the most noticeable emerging technologies, allows brands to demonstrate their sustainability claims while providing greater transparency. Blockchain traceability solutions provide distributed databases, enable transparent data storage with chains, and create a seamless chain of information between the parties in the system.
Experts have even pointed out eight aspects where blockchain can improve the fashion industry along its supply chain (according to Innovatech):
- Reduce counterfeit products
- Protection of intellectual property rights, physical property, and personal data
- Ability to prove the origin
- Improving logistics, connecting small and medium industries with retailers
- Reduce product recalls
- Delivery control
- Warranty support and electronic coupon supply
- Transaction management, helping users to control their data
2. How the fashion industry is using blockchain traceability solutions to improve multiple aspects
Entities in the fashion supply chain focus from the outset on building a genuinely scalable fiber-to-retailer traceability platform for the industry.
Lenzing supported the launch of the first blockchain traceability platform for TENCEL silk fibers at the Hong Kong Fashion Summit in 2019. Loomia, a technology firm specializing in circuit research, is increasing blockchain adoption in Smart textile products. Integrating blockchain into data storage and management, Loomia hopes to create a bridge between the physical world and digital intelligence and change the data model — consumers will control their data and profits from that data by their will.
LVMH has also launched the Aura platform that allows consumers to track the group’s luxury goods’ history and authenticity. The original brands on the platform were Louis Vuitton and Parfums Christian Dior.
In addition to authenticating a product, consumers will be able to use an app to view the luxury item’s story, including its design and materials, as well as its manufacturing and distribution. Additionally, it will include information about product care and warranty.
In Portugal, HUUB — a Tech Fashion Startup, is changing logistics in Europe. HUUB uses blockchain to connect small and medium industries with retailers on their roadmap to help them conquer the fashion industry over the world.
akaChain traceability solutions for fashion brands
Supply chain transparency and continuity are essential to all businesses in the digital world.
akaChain, an enterprise blockchain platform, offers blockchain traceability solutions to many businesses in the most critical areas. Using smart contract and tokenization, akaChain builds modular structured solutions that can be customized to suit multi enterprises’ needs and systems.
In the fashion and textile industries, we see many problems under the hood. Blockchain will help the industry in practical operations, from raw materials, copyright design, processing to distribution, and used clothes.
The creativity and constant change of fashion will not stop at the costumes; it is also how brands apply technology to operate the industry. Contact us to find out how blockchain traceability will change your business.
akaChain is backed by FPT Software, a globally leading technology, and IT services provider. It is an end-to-end, permissioned, multi-chain network based on the Hyperledger Fabric. Since its establishment in September 2018, akaChain’s product has assisted many enterprises, from SMEs to Fortune 500 firms, to transform with distributed ledger technology. The company provides a broad range of permissioned blockchain-based products and services in multiple sectors, including retail, supply chain, banking and finance, insurance, shopping mall management, etc. to transform with its distributed ledger technology. For more information, please visit https://blog.akachain.io/.
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