Blockchain is finally in fashion as brands tackle supply chain issues

The fashion industry is waking up to the benefits of blockchain technology, according GlobalData.

This is the result of brands looking to increase transparency and improve efficiencies. It’s early days yet, but the technology has the potential to transform the global supply chain, says Michelle Russell, Apparel Correspondent at GlobalData.

“In the last few years, the adoption of blockchain technology amongst apparel and textile companies has grown substantially as the pressure to have more visibility in the supply chain ramps up,” she comments. “Its uses are varied as companies use the ledger to address problems in unethical behaviour, excess waste, the origin of goods, and counterfeiting.”

German startup Retraced recently launched a blockchain-based transparency solution that it is trialling with a number of fashion brands. Other examples include OpenSC which received $4 million in seed funding for its platform that aims to build transparency around commodities known to have significant environmental or human rights risks within their supply chain and Waste2Wear's launch of the world's first ocean plastic-based fabrics collection that is fully traceable using blockchain technology.

Russell concludes: “Blockchain is undoubtedly helping the apparel and textile industry overcome many of its problems. While still in its infancy there are undoubtedly many bumps to be ironed out, such as the need for common standards and regulations. However, despite the challenges, the increased adoption of blockchain shows there is a need for this type of technology in the industry and its potential is substantial.”