How Can Block Chains Reshape The Fashion Industry Supply Chain?

Although the fashion industry earned more than 1 trillion dollars in revenue in 2018, its supply chain continued to face challenges of waste, moral problems and counterfeiting. However, the block chain (blockchain) may solve or at least alleviate these concerns.

The block chain becomes a revolutionary way of trading and data storage, and it can solve many obstacles to the development of fashion industry.

First of all, we will explain in detail so that you can have a better understanding and then introduce these difficulties one by one. Now let's start with the most obvious question: what is block chain?

Why is block chain?

In short, the block chain is a decentralized, non changing digital ledger, and its audit process is open and transparent. This is a simple definition, but let us explore it more deeply. How does the block chain work?

In essence, block chaining is a way of keeping records without the need of third party supervision. Each member in the network has authorization to change records without relying on intermediaries (such as banks). When any record requests are changed, most block chain participants must be allowed to perform.

So how do we get the chain to benefit the users? Here are some key benefits that will help increase the practicality of the block chain. Please bear in mind that there are more, but the following are the most relevant ones.

(1) removing intermediate sectors (de centralization).

(two) this is the so-called point to point network P2P (peer-topeer network). The block chain can change every item without any core role approval. There are three important ways to benefit users:

First, block chains can eliminate all red tape, reduce your dependence on middlemen, and speed up the change.

Secondly, if any action occurs, the block chain is authorized to give members of the network sufficient authority to decide for themselves.

Third, block chain eliminates many behind the scenes security measures adopted by many entities when performing transactions.

(three) block chains allow full transparency. Block chain members can read all records on the network. Moreover, these records can not be tampered with, which means that no one can delete or update any part or all of the records. Therefore, block chains allow people to easily see every action that occurs.

(four) block chains make data easier to track. Because of the transparency and variability of the block chain, it is easier to view the specific value associated with the product. You can see clearly from the beginning to the end who will do anything at that time.

Block chain solution

Therefore, how can the block chain solve the problems mentioned earlier?

(1) excessive waste

The amount of waste generated by the garment industry has been disappointing. The scandal of Burberry in 2018 will give you a better understanding of the fashion industry. That is to say, the high-end brand destroyed the unsold inventory of 28 million 600 thousand pounds ($36 million 900 thousand) last year.

What is the reason for destroying stock? Just to maintain the brand image and pass it on to consumers, it is an unrealistic illusion that all products have been bought. But even though these strategies may make brands look more eager to get, they burn a lot of money in addition to their environmental disadvantages. When those unused materials meet the same fate, the bottom line is waste.

The use of block chains can greatly reduce the seriousness of the problem. The block chain allows each piece of material to be tied to the value of the network. Because data is easy to track, you can see all the whereabouts of the data. Some enterprises have implemented this practice: Queen of Raw uses block chains to track the whereabouts of extra textiles and resend them to buyers.

(two) counterfeit goods

Counterfeit products are a serious problem in this industry. In fact, the EU market suffers billions of euros in losses every year. These unwelcome products enter the production and distribution cycle, which may account for about 10% of the total profits.

This is where the traceability of the block chain plays a key role again. If the data have been established, each commodity is related to the price on the network. If the counterfeit product is rolled into the product line, the product will not be valuable. Therefore, whenever there is a discrepancy between data and goods, it should not exist.

(three) immoral behavior

The de centralization of block chains, based on trust system, can help prevent immoral behavior and factory disasters. Since any move is determined by the approval of the community, no company can arbitrarily act arbitrarily. On the contrary, it first needs to keep its interests consistent with the interests of shareholders, customers and employees themselves. This will make any company that tries to skim over the working conditions disagree with the rest of the block chain.

Balanced business model

Block chain provides an effective solution for many problems faced by garment and fashion industries.

Block chain is still a new concept. We are still exploring its functions and limitations. Nevertheless, even in the undeveloped form, the technology can still solve some of the industrial problems. As time goes on and utilization rates increase, block chains should help create a smartest, safer and more balanced business model.