Blockchain has changed the landscape for many businesses around the globe. A few years back, when industries like – finance, healthcare, education, security, and many other government and corporate bodies were embracing cryptocurrency. The textile and apparel industry was nowhere behind.
For those who are living under a rock, blockchain is a set of blocks carrying digital information. These blocks stores information related to transaction - who all are participating in the transaction with date, time and other required information. Each block has its own unique set of information and can be identified by a unique “HASH” code.
As reported by Forbes, Blockchain implementation will facilitate more intelligent business processes because the trust would be distributed, and the processes would be truly transparent.
In the fashion industry, transparency is no small feat. At every stage from raw materials to what we buy, we want to know how it works.
Blockchain is transforming the textile and apparel industry with transparency - from farming to finished garment. Blockchain is all set to make the industry more transparent. Click to tweet
Apparel Industry is embracing blockchain to conquer the challenges. Here’s how blockchain is fixing the threats of the textile and apparel industry.
Transforming Supply Chain:
Blockchain creates a decentralized and peer-to-peer network that connect all stakeholders in the value chain – farmers, designing houses, raw material suppliers, manufacturers, transporter, distributors, retail outlets, banks, consumers, and other parties of the complete supply chain. Due to decentralization, blockchain has blocked all the chances of failure as it’s not relying on a single entity.
There’s a shift in the way consumers and companies look at transparency. Over the period, consumers started chasing transparency, they want to know the story behind their clothes. And so, companies started focusing on decentralized manufacturing. Businesses started touting sustainability and supply chain transparency to increase their sell. Thanks to the blockchain.
The blockchain solution in fashion industry stems from its unique ability to create a physical-digital link between goods and their digital identities on a blockchain. Generally, a cryptographic seal or serial number acts as the
physical identifier, linking back to the individual product’s “digital twin”. This link offers a more transparent supply chain to the apparel industry. And if physical-digital links are missing, that indicates counterfeit goods. The custody chain of blockchain can provide the information where the counterfeit product was slipped in and the authentic product was diverted out.
Blockchain has transformed the fashion industry with a more ethical supply chain.
Read More: Blockchain Set to Enter Supply Chain By 2025
New Light to Brand Positioning and Business Model:
Blockchain can do a lot more than you can imagine with its power of transparency. In the world full of smart technologies around, every manufacturer, supplier, retailer, and even shoppers demand transparency. Every single person associated with your brand wants to know your story.
Today’s millennials are more conscious than ever. They want to know about the brands they follow – what brands does to make their fashion rich with style and sustainability. Consumers can make or break any brand.
That’s why brands and businesses need to give their consumers what they demand. And consumers are demanding transparency and sustainability to continue with brands. Many apparel brands are transforming their business model from linear to circular. They are minimizing their waste and disposing of them properly.
Blockchain has increased the transparency not only within the supply chain but also between brands and its consumers. Brands are getting more transparent about the value they are adding in their customers’ life. Brands and retailers are changing their business model by adopting new technologies and customer’s shopping behavior.
Many apparel brands don’t position themselves as an apparel company. Instead, they position themselves as a tech company that happened to make clothes. As the apparel world is embracing technology to come up with sensor-equipped clothing. That’s where brands are positioning themselves well by changing their business model.
Blockchain has revolutionized the apparel industry.
Apparel, Blockchain, Consumers – The New ABC of Apparel world:
Apparel businesses are loving the blockchain as they can fetch any information starting with farms or fiber providers, then processors, manufacturers, shippers, and retailers within seconds. Moreover, Sustainability and compliance of goods can also be tracked through information from the blockchain on the raw material and manufacturing processes used to make it.
The technology has narrowed the gap between brands and consumers. Apparel companies can securely communicate with consumers about the complete product story for every single garment. The authenticity of any branded product can be verified by both retailers and consumers. Brands can also keep a track on sales and royalty payments. This way, counterfeit goods can be rooted out.
Blockchain is reshaping apparel world, and guess what? Consumers are loving it. From supply chain to demand chain – Blockchain is everywhere.
Blockchain has added more power to consumerism. Consumers can now scan the tag and discover the history of any garment.
Technology in the apparel world has not just changed the way they are made. But also, the pattern of consumption and customer behavior.
The future of apparel and fashion is more about a change in the business model and industry culture.
Technology changing the textile industry: TexPro