The fast-fashion culture, which freely copies designs, and the increase in counterfeiting, which reduces profits, pose two threats to the fashion industry. However, blockchain provides a ray of hope. or better yet, a tangible response.
"A large, public, distributed ledger that records transactions chronologically and in a tamper-proof way" is basically what a blockchain is. For this reason, it is perfect for the intricate supply chain of the fashion industry, where a garment can move from raw materials to retail locations across international borders.
GlobalData's Nicklas Nilsson, a thematic intelligence consultant, believes blockchain has enormous potential, particularly when paired with the Internet of Things (IoT). Every stage of a product's life, from the procurement of cotton to the last sale, can be tracked and validated thanks to blockchain technology. According to Just Style, this gives customers "deeper insights" into the provenance and ownership history of the products they buy.
The urgency of the situation is emphasized by Everledger, a digital transparency company. It estimates that counterfeiting costs the industry close to $100 billion US dollars a year, citing a recent report. Blockchain can be a game-changer in this regard, guaranteeing brand authenticity based on expertise, provenance, and quality.