Blockchain in Sustainable Fashion & Circular Economy
The fashion industry and sustainability have not always gone hand in hand throughout history. From time to time, many consumers have voiced their concerns over the issues plaguing the industry, including overproduction and the overloading of landfills with textile waste. As such a situation persists, fashion brands are scrambling to enhance their sustainability efforts and bring more visibility towards their business practices among customers.
The major sustainability concerns in the fashion industry
The following are the major issues that customers and companies find in the fashion industry that need to be addressed:
- There is a low level of transparency between fashion businesses and their customers, making it difficult to nurture brand loyalty.
- Customers are concerned about the origins of their purchases, particularly the ethical issues that occur during the sourcing of raw materials.
- Due to mass production, there is excess waste and most consumers are unaware of the best practices of recycling.
- Fashion products are more susceptible to counterfeiting, which diminishes the value and reputation of authentic brands.
Building a circular economy in the fashion industry with blockchain technology
It is a strange concept for many to think of improving sustainability using technology, which is often negatively disruptive. Yet, despite this concern, blockchain technology has emerged as a feasible and worthwhile solution for the issues in the fashion industry.
The best part is that this technology can help in creating a circular economy for the industry that helps in boosting sustainability and fostering ethical business practices in the long run. The Authlink platform is enabling this by applying key blockchain functions in the industry
The following are the major components of a circular economy model that fashion brands can adopt using the Authlink platform to boost transparency and trust:
- Material sourcing- addressing the ethical practices followed at this stage, including the welfare of the labourers.
- Textile processing- emphasizing that there is no excess wastage involved in building the end product, and that the processing happens in the most sustainable manner possible.
- Final production- Ensuring efficiency while creating the end product through automation using Authlink.
- Provenance tracing- Using Authlink’s track and trace solutions to add time stamps related to the product’s movement along the supply chain for higher transparency.
- Connecting with customers- Enabling customers to access detailed product information at the store using QR code smart tag technology and help them make informed purchase decisions.
- Enhancing product engagement- Guiding and educating customers on the best practices throughout the product use period to drive up interest and appeal.
- Promoting recycling practices- Instructing customers on the best ways to dispose of their products after use with localized and personalized recommendations through Authlink Smart Tags.
- Starting over sustainably- Getting started with a new product using the best sustainable practices.
How Authlink’s circular economy benefits fashion businesses
The circular economy model proposed by Authlink is practical in the long run, and is certainly advantageous for fashion brands in many ways, the major ones being as follows:
- It helps in boosting supply chain transparency and traceability, which builds customer confidence on the authenticity of the products and the reliability of the brand.
- The platform helps to curb the sale of counterfeit goods that negatively impact brand reputation with maximum time and cost efficiency.
- Brands can connect and engage more with their customers, and encourage them to interact with their purchases by creating new digital experiences.
- Business can guide customers throughout product use and also receive timely feedback that helps in improving their services.
- The platform generates detailed customer insights that help fashion brands understand consumer behavior and enhance their personalization efforts.
- It promotes sustainability in the supply chain from start to finish, and further helps customers become more conscious about their product use and disposal activities.
Make the right choice
The future of the fashion industry is driven by sustainability, and the blockchain-driven Authlink platform is leading the way. Book a demo of the platform or sign up for the beta version today to learn more.