Blockchain technology is known for its use in electronic payments and financial transactions. Besides, other uses of this innovative technology are quickly capturing different sectors of the economy. The fashion industry is starting to leverage its benefit from this technology. The Blockchain Solutions in the fashion industry originate from the fact that it can build a physical-digital connection between goods and their different digital identities. A record is made on the blockchain when a product moves from one person to another. In turn, it will be easier to notice fake goods as they won’t have the physical-digital link. Also, suppliers doing customization with the record will be discovered instantly.
The Relevance of Blockchain Solutions in the Fashion Industry
The fashion industry has multiple challenges just like any other industry. One big concern that has been affecting this industry is fake goods flooding the market. This has caused huge reputation loss and revenue loss to established brands. Another challenge is to track the shipment as well as the timely delivery of goods with the correct specifications.
Let’s look at the different areas in the fashion industry and how blockchain with its integration by mobile app development company can address certain problems in those areas.
1. Supply Chain Management
As discussed earlier, one of the most relevant blockchain applications is the supply chain and inventory management. With IoT technologies, it is easy to instantly trace consignments of raw materials straight from the source to the factory. It is easy to track the finished goods all through the consumer distribution journey.
It’s true that multiple tracking technologies are present, but none of them is a match to the blockchain. With its distributed ledger, records made can’t be modified, lost or destroyed. Also, it enables real-time access to product information as supplied by brands. Vendors are able to immediately reach out to suppliers on matters like stock levels and consumer feedback.
2. Fair Payment
It is usually observed that people who are indulged in the manufacturing are paid less. Most of the people making fabrics of greatest value are from remote places. Large fashion brands hire these people at very low wages, which is exploiting.
Blockchain supports those people who have been neglected in the economy. Therefore, a decentralized application can be developed for individuals living in contemptible conditions to offer them a source of living. Another advantage is that it naturally enables peer-to-peer trade means the middleman is eliminated. People can buy directly from people rather than from the expensive brands. This way, production will be taken back to the locals.
3. Royalty Tracking
Blockchain technology makes it easy to track royalty payments. It doesn’t just benefit the designers to build a consistent proof of creation but it can also be used for building and tracking trademarks, license designs in addition to royalty programs or sales originating. The convenience of Chatbot development service with Blockchain plays a vital role in changing fashion industry but also a prime technology for customer service engagement.
4. Reduce Operating Costs
In addition to the above benefits of better data management, transforming supply chain, and fair payment, Blockchain technology offers a way to reduce the operational costs. It offers an easy to integrate surface for data reconciliation across the operations and service lines. Manual management of paperwork is reduced with the introduction of digital technology.
5. Improve Customer Service
Personalization has gone from one level to an almost absolute necessity. Reports reveal that 66% of global consumers and 70% of millennial are willing to pay more for improved customer service. By tokenizing physical assets and allowing consumers to see from where their items are sourced, vendors are using Blockchain technology to redefine luxury and enhance customer experience.
Frequently Asked Questions
1. What is Blockchain technology and how does it work?
Based on a peer-to-peer (P2P) topology, Blockchain is a distributed ledger methodology that allows data to be stored globally on hundreds of servers while letting anyone on the network see everyone else’s entries in real-time. That makes it tough for one user to gain control of, or game, the network.
2. What is Blockchain technology good for?
By spreading its operations across a range of computers, blockchain allows Bitcoin and other crypto-currencies to operate without the necessity for a central authority. This not only eliminates risk but also reduces many of the processing and transaction fees.
3. What is the technology behind augmented reality?
Multiple technologies are used in augmented reality rendering, comprising optical projection systems, monitors, handheld devices, and display systems, which are worn on the human body. Enterprises consult augmented reality app development to build engaging mobile app integrated with Blockchain technology for better business benefits.
4. What are the main features of Blockchain technology?
Data stored in the blockchain is made secure and immutable using cryptography. Every block is referenced by a unique string of characters, generated by a cryptographic hash function. This function can accept any amount of data as inputs and generate a fixed-length string as output.
Blockchain technology enables the customers to look at and know the complexity that it takes to bring a product to the market. This helps with changing their perception of value but also reduces the massive quantity of products thrown out within a year of usage. When integrated rightly by the app developers of mobile app maintenance services, it can assist the fashion industry with the management of margins and revenues to keep them afloat, no matter how significantly the fashion trend changes.