The Blockchain global market is set to reach $2.3 Billion by 2021, and analysts are predicting big things beyond cryptocurrencies. With the rapid adoption across major industries, the technology is seeing incremental growth in its core offering.
Blockchain provides efficiencies across the board. This adds an additional element of simulation in the industry. When there is a platform-centric shift, it creates new avenues of growth and further enhancement in innovation.
We have small to mid-size fashion hackers who are developing wearables for localized markets. We also have big labels and fashion houses that are scaling up smart jeans and sensor jewellery. The shift in philosophy of high-tech offerings has been aided by implementing Blockchain as a core technology.
Connecting offline & online markets
The real challenge in the fashion industry has been about connecting distributed experiences under one banner. This has been accomplished by brands that have experimented with QR codes which can retrieve more details about an apparel. For organic, ethical & eco-conscious brands, it helps them extend the brand story to the next dimension. For brands that are concerned with communicating origin, they can share those supply-oriented messages accordingly.
Blockchain is being used by early adopters across the world. This was the case with designer Martine Jarlgaard, who collaborated with the company Provenance to make a Blockchain-enabled experience happen.
The brand BabyGhost worked with VeChain, another Blockchain platform, to create NFC chips ian their 2017 collection. The chip would communicate with a user’s phone and talk more about the story of the garment.
Logistics efficiencies & waste management
Blockchain provides logistical efficiencies far beyond any other technology. The $3 Trillion global fashion industry has multiple layers of moving parts and focuses on IoT, AI, and Machine Learning to provide tracking. From ordering to delivery, there are many areas of improvement that Blockchain focuses on.
Research from Cognizant group revealed that 80% of retailers tested believed that Blockchain would provide savings of more than 2.5%. This is, in part, due to the operations & logistics capability of the core technology.
The fashion apparel industry has a chequered history of contributing to landfills at scale. With the instant/fast fashion trend rising, Textile has become the second-largest polluter only after Oil. Countries like China and India are using Blockchain technology to reduce pollution and waste caused by inefficiencies. From better inventory control to an enhanced reach of oversight, the cost benefits of adopting Blockchain are being used to create cleaner clothes.
Certification of authenticity
Rare Carat, a brand that helps users find authentic diamond rings, worked with Everledger to create a Blockchain solution to keep a track of their assets. It was used to verify and authenticate diamonds that were entering the market. The jewelry industry has been facing a problem of inauthentic supply influx, which can be solved with Blockchain.
How was it done? There was a digital twin of the asset on the Blockchain and the ledger was able to keep up with the moving diamonds.
Data-analytics in the fashion space
Data processing is the biggest impact area that Blockchain can provide to fashion houses. When it comes to retrieving, storing and processing data, Blockchain is a premier technology helping the fashion industry. With the wide range in data available, Blockchain is helping fashion houses safely store that information through the distributed ledger system.
When it comes to innovations such as 3D modeling, connected jewelry, wearables, and Nano-fabrics, Blockchain stimulates the fashion industry by providing deeper insights into consumer trends. Companies can save sensitive data on the Blockchain and use technologies like AI and Machine Learning to drive meaningful insights.