Blockchain is the technological marvel of this Era and happens to be one of the fastest-growing sectors in the tech world right now. The distributed ledger technology has disrupted all the major industries and has made a significant positive impact on the fashion industry as well.
Over the last few years, the trend of investing in blockchain companies has increased exponentially reaching an annual growth of 90 percent. This new-age technology addresses some of the common pain areas in the existing industries. It comes with boons like immutability, enhanced security, proof of authenticity, etc. that are very important to counter the issues with the fashion industry. There is a need to prove the authenticity of the brand produces especially that comes with the tag of a limited edition. High-end brands suffer substantial losses every year due to counterfeit products. All of these and more can be solved with the help of Blockchain technology.
In this article, we will discuss various ways in which Blockchain is reforming the fashion industry particularly the luxury brands.
- Tracking Precious Stones and Diamonds :
Valuables like diamonds and precious stones have an inter-continental trade pattern. The stones are mined at one continent, cut and polished in another and set in jewelry different geography. It is a tedious process that involves huge volumes of documentation and verification processes, not to mention multiple cross border transactions. The global nature of trade makes it very difficult to track the stones as well as the transactions with traditional means.
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Blockchain has a solution to this problem. With the help of DLT, every diamond can be tracked right from its origin to the ultimate stage of hitting the retail stores meticulously. Such a system also addresses the issue of blood or conflict diamonds. With a technology that can track the movement of the stones as well as the transactions that happen against it, the diamond industry is expected to grow at an exponential rate shortly.
- Proof of Authenticity:
Blockchain can be used to create a digital identity of high-end products such as shoes, watches, bags, jewelry, etc. There are Blockchain start-ups that in collaboration with different brands have already put that idea into motion. These projects stress on verification of the authenticity of vintage items to prevent counterfeiting and devaluation of such valuables.
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Blockchain-based digital identity is like a certificate that proves the authenticity of the product in question. It records all information related to the particular item in blocks that cannot be tampered with. The brand can link the identity of the item to the serial number, QR code or chip that can be accessed through an app. If this kind of process becomes standard it can put an end to selling fake items. It will also make it easy for authorities to track stolen valuables as well.
- Post Sale Customer Communication
The digital identification of valuables also helps in post-sales customer communication. The customer can communicate with the brand seamlessly. Any inquiry or customer service request put against the item of a brand gets well documented on the record of the item.
- Management of Supply Chain Information:
Blockchain technology is the boon to the management of supply chain information. Many brands outsource the manufacture of their items to different countries, to minimize the production cost. The recording and sharing of information about the supply chain is a humongous task, which has its own set of issues. Blockchain helps in keeping a track of every item and transaction that enter the supply chain. The shared ledger helps in record keeping and sharing of information cost-effective and less time-consuming.
Many notable brands have already implemented blockchain technology in their line of operations to streamline the existing processes. Even at the preliminary stage blockchain has proved its worth and the industry is bracing itself for a unified adoption of this new-age technology.