Blockchain technology is the new trend in almost all the business sectors, starting from finance to education, healthcare, security, and now it is the textile industry that the blockchain technology is all set to bring in the transformation. Blockchain makes the textile and fashion industry more transparent. It helps in fixing the issues that the textile industry is currently facing pertaining to fraudulent supply chain networks and brand positioning.
With the help of the DLT (distributed ledger technology), fashion brands can easily communicate product provenance to customers and partners, and at the same time can mitigate various environmental risks associated with it. In fact, blockchain benefits fashion both from the perspectives of the consumers as well as the business. Because of the blockchain technology taking the front seat in revamping the textile industry, the shoppers all across the world can have access to an attractive product assortment. Also, the products are made accessible to them via mobile, product customization, immediate delivery and easy returns. At the same time, manufacturing also has become more effective than it was ever before due to increased computerization and automation in areas such as sewing, pattern making, and knitting.
How Does the Integration of Blockchain and the Textile Industry Can Help?
With the integration of the decentralized and peer-to-peer blockchain technology, it brings in all the major stakeholders like farmers, raw material suppliers, designing houses, transporters, manufacturers, banks, retail outlets, distributors, consumers, and other parties under the same supply chain roof. In fact, with the integration of the blockchain technology in the fashion industry, the luxury brands can promote a more ethical manufacturing process right from the beginning till the end, thereby proving the sustainability and authenticity of their products. Thus, with the help of blockchain technology, the transparency of the supply chain can be guaranteed, intellectual property can be secured and, data sharing efficiency can be improved.
Here is a list of some of the companies that have incorporated blockchain in fashion. Read below to know more about their blockchain applications.
- Loomia
The company manufactures textile circuitry to heat and light garments and also collects data from them using sensing technologies installed in them. Blockchain helps in delivering some data back to the brand so that by utilizing the data, the brand can manufacture better products in the future.
- Curate
It is a decentralized app (DApp) that is to say it is a blockchain-based smart contract platform, that uses digital tokens like BTC or ETH or its very own digital currency CUR8 tokens to reward users who curate various fashion styles. Various fashion brands collaborate with Curate to increase their online sales or raise their brand awareness.
- Fashion Coin
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It is a crypto-based wallet that uses the P2P network of blockchain technology.
- Textile Genesis
The Hong Kong-based technology firm Textile Genesis uses blockchain technology to trace its Tencel fibers. The blockchain-based Tencel Fiber coins are used as an authentication mechanism to protect against any form of adulteration, and also provide digital security to each step of apparel manufacture.
- Arianee
This company uses blockchain for independent, decentralized, and secure verification. It relieves the users from relying on a single and centralized third party. As all the network nodes are required to verify any transaction on the protocol, therefore there are no chances of fraud.
- Fushsia
The Seattle based company Fuchsia uses the blockchain platform named Provenance to share details about the workers who manufacture the shoes of the brand in Pakistan.
- The fabricant
This company uses blockchain technology for creating digital-only fashion apparels that are compatible to be traded in the virtual world.
Apparel, Blockchain, Consumers—The New ABC of Apparel Industry
Apparel, Blockchain, Consumers or the ABC approach brings in the apparel industry and consumers under one roof. Right from the beginning of the procurement of the fiber to the manufacturing of the clothes to selling them to the consumers, the textile industry follows the ABC approach. Blockchain has made it easy for the apparel industry to fetch every information pertaining to the fiber providers, manufacturers, processors, shippers, and retailers within seconds.
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Moreover, blockchain also gives detailed information about the compliance and sustainability of the raw materials used for the manufacture of apparel. Apart from this, blockchain helps in establishing the authenticity of the garments where the customers can scan the tags attached to each apparel to find out relevant information about the brands and the products. It also helps in rooting out counterfeit goods. Therefore, blockchain is an important component in the apparel industry right from the beginning till the end.
Conclusion
Providing an exceptional customer experience is very important for the fashion industry to excel in its field. This has increased rapidly with the advent of technology and digital thinking of the customers, but then providing the customers with the best experience needs timely funding and significant investment, which is still at a very nascent stage as far as the textile industry is concerned. The product journey has received far less investment as compared to the consumer journey. Therefore, to balance this, blockchain and DLT can play a very important role. In fact, the blockchain models will eventually help in reducing counterfeiting and improving labor practices by establishing higher levels of ethical standards in the business.
