Business

Blockchain for the Fashion and Luxury Industry

The fashion and luxury industry has become infamous for its waste and inhumane working conditions. Blockchain-based tracking solutions can empower consumers by providing supply chain insights.

There is a lot wrong with today’s fashion industry. It’s the second-largest polluter in the world after the oil industry. Here are some facts:

Water pollution: In many of the countries in which garments are produced, untreated toxic wastewaters from textile factories are dumped directly into the rivers.

Emissions: The apparel industry accounts for 10% of global carbon emissions.

Waste: Every year, fashion manufacturing produces 92 million tons of solid waste, most of which goes to landfills or up in smoke.

Working Conditions: Many fashion brands barely even pay their workers a minimum wage. Garment workers are often forced to work 14 to 16 hours a day, 7 days a week. Employees often work with no ventilation, breathing in toxic substances, inhaling fiber dust, or blasted sand in unsafe buildings.

Long story short: The $800 billion global apparel industry, with its ever-faster fashion, has become infamous for its waste and squander.

Blockchain offers solutions: traceability and transparency

While the above issues are well-known facts, consumers do not have sufficient insights into manufacturers’ supply chains to be able to understand how fashion brands actually produce their clothing. Labels of fair trade and businesses’ self-declared corporate and social responsibility (SCR) goals are mostly marketing stunts at best.

With blockchain, there is a solution at hand that could provide traceability and transparency into the fashion industry’s supply chains.  Blockchain solutions can create a physical-to-digital link between goods and their (digital) identities. A cryptographic seal or serial number acts as the physical identifier, linking back to the product’s “digital twin.”

This digital identity is what brands are betting on. It’s on the micro-scale that experts are expecting blockchain to make a difference. That’s where stores play an important role, particularly in the luxury universe. They act as a seal of reference, committing themselves to sell a product linked to a digital identity, fostering trust from the customer’s side, and improving the customer-brand relationship.

Because a product has a blockchain-based digital identity, it also comes with the reassurance factor that it’s not a fraudulent item. The shopping experience changes as the brand’s image is preserved, and the buyer avoids disappointment.

The second-hand market of luxury items – proof of authentification

Beyond fraud-fighting, an identification via blockchain allows for a resignificance of the second-hand market of luxury items. Having seen an increase in popularity, pre-owned items can benefit from an authentification, a proof of origin, thanks to blockchain.

fashion-luxury-industry-blockchain-use-case-BlockchainLand

Think of an ID card that’s impossible to falsify. Blockchain technology makes that possible and enables the transfer of this ID to the product’s new owner. It also speeds up the process of verification that precedes the purchase of luxury items.

On the one hand, the buyer can verify the item’s journey since the initial purchase, and on the other hand, brands can ensure the value of their products doesn’t rapidly degrade in the second-hand market. It also enables brands to detain a detailed “cartography” of their clients thanks to the digital certificate of authenticity which they’re the only ones able to emit.

Some fashion companies already use blockchain technology today

LVMH announced in May of this year that they’ve partnered with Microsoft and ConsenSys to launch a blockchain-based platform called Aura. The objective is to ensure the traceability and authenticity of luxury products. Initially, the technology will be used by Louis Vuitton and by Christian Dior. It’ll enable proof of origin, lifecycle tracking, protecting intellectual property and fighting against fraud.

Somish Blockchain Labs recently partnered with Circular Apparel Innovation Factory (CAIF) to come up with a blockchain solution to enable supply chain networks to implement CSR goals, discover cost-saving levers, ensure contractual conditions are met, and stakeholder incentives aligned.

Arianee is a protocol for product certification and communication between an item’s brand and owner. Each piece will receive a blockchain-based certificate, enabling consumers to track the product’s authenticity.

“Arianee’s protocol is a set of rules and guidelines for product certification and communication between the item’s brand and owner.”

Hugo Boss is exploring a blockchain use case on tracking goods in the supply chain, that shows in a transparent way the ownership and the transfer of ownership of goods among peers in the same network.

Today, most of these solutions focus on counterfeit prevention and proof of ownership, which is particularly critical in the luxury fashion industry. However, the more blockchain is finding its way into the fashion industry, the more it will also be used to trace and track supply chains to identify unethical manufacturing practices.

The consumer mindset is already shifting towards more ethical supply chains. Once consumers have the tools to supervise fashion brands and punish them economically by non-consumption, the game will start to change.

Tags

Lukas Hofer

Lukas J. Hofer is a business writer and has years of experience in financial services and international business. He has a proven track record working with leading international companies and currently works as independent business consultant in Asia.

Related Articles

9 Comments

  1. warmth or redness in the face, neck, or chest, stuffy nose, headaches, stomach pain, upset stomach, nausea, diarrhea, memory problems, back pain, an inability to differentiate between the colors green and blue, loss of hearing, , and dizziness buy cialis cheap

  2. Se qualche volta vi capita di vedere in lista un titolo giГ  uscito da un pochino, ГЁ perchГ© puГІ accadere che una novitГ  mi sfugga e poichГ© di solito questi rari casi riguardano piccole case editrici, piuttosto che saltarne la segnalazione preferisco inserirli appena me ne accorgo cheap cialis online pharmacy Some men may find that one of the drugs works slightly better than another for whatever reason

  3. I have been looking for articles on these topics for a long time. casinocommunity I don’t know how grateful you are for posting on this topic. Thank you for the numerous articles on this site, I will subscribe to those links in my bookmarks and visit them often. Have a nice day

  4. Register, develop your account and publish your images. On a side note, if you ask about them however they never turn the question around to ask concerning you, that’s a good sign that they aren’t especially interested. She will always enjoy you, whatever takes place about since love is the most crucial point for a Chinese lady. You can also review profiles of Russian ladies that are online at the very same time as you, so you can delve into talking with good-looking girls and appreciate a company online no matter of the moment when you visit. The company is honored to have lots of participants exchanging great deals of messages each and every single day. Participants can socialize online in conversation rooms, and the website additionally funds numerous in-person events, such as wine-tastings and also cooking classes. A video chat with Russian women can come to be a remarkable opportunity to see exactly how they look, gesture, and also share emotions. Chat up can be already wed or have boyfriends. Although Russian females may seem a bit shy or even chilly initially look, they have a pair of tricks to stun you in bed.

    A divorced woman will certainly locate it unsubstantiated in love once more, and various other males might hesitate prior to beginning connections with such women. Chinese females dating society suggests revealing your feelings to the lover, so be ready to feel your partner’s genuine love! As a whole, dating Chinese females suggests recognizing their culture and also recognizing their mentality. There is a multitude of Chinese females dating websites mature russian mom where you can meet them. On Chinese females dating websites, you will fulfill psychological and also positive women that aren’t terrified of taking the very first steps. They commonly satisfy their relatives. So, if you make a candlelight supper, take her outdoors to enjoy the sundown, or offer her blossoms or an adorable soft plaything, that will certainly melt her heart. Various backgrounds would certainly end up being the challenges heading towards winning your girl’s heart. Eastern ladies dating implies being around women that always care for themselves, so be prepared to always look cool, so you match your girl’s design. In situation something occurs that will certainly cause unfavorable modifications in your partnerships with a Chinese lady, you much better do something about it to prevent things from “dropping apart” totally.

    You can be positive she treats your relationships with severity if a lady has introduced you to her parents. A girl will not invest cash on something unnecessary. Intrigued in finding your Chinese woman? You have actually only provided yourself to the head of the line, if the access of a report is memorable as well as focus finding. You can easily draw the interest of “the one” by revealing that you value her attributes, respect sights, and share values. Do as they say; women treat them with terrific respect. When beginning relationships with guys, Chinese girls treat them with seriousness and anticipate them to develop into a marriage. Chinese females for dating are not comparable to Western girls, so cultural distinctions may end up being specifying in your connections. You may believe that Chinese females dating culture. Although these ladies might seem too serious often, when you are familiar with them much better, you will quickly alter your mind.

    Besides, China women dating adore it when guys recognize exactly how to make them feel safeguarded and stop them from taking care of problems by themselves. When China ladies for dating pick lovers, they remain with them for the rest of their lives. You need to have heard that women from China typically look much younger than they really are. You can see them in stylish clothes, Denims and t-shirts, or typical outfits, as well as they would look amazing in any kind of outfit. Their small figures permit them not to spend a little time on buying since they can “rock” any type of appearance! Don’t prepare any kind of meetings in the early morning, and remain with her in bed for a little longer – she will absolutely value that. Where travel is real-time as well as restricted conferences are suppressed, on the internet systems for dating are a boon to cultivate long lasting relationships. Besides, it enables you to encounter similar people for significant relationships.

Leave a Reply

Your email address will not be published.

Close