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Blockchain Technology And Its Application In Fashion Industry
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Blockchain Technology And Its Application In Fashion Industry

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The new-age customers no longer like to wait for their placed orders to be delivered without knowing how or where the goods are. However, the garment industry's intricate network of worldwide and fragmented supply chains can occasionally contribute to a lack of transparency. Furthermore, this network is frequently related to unsustainable behaviors that have both environmental and social implications. Blockchain technology, with its decentralized data storage solution, aids in delivering transparency to its users while maintaining the accuracy of the information. 

We live in a world where fashion is reshaping our everyday lives. Although the trends in fashion keep on changing with time, certain technologies have helped this industry grow immensely. Regarding the whole system, blockchain technology is one of the new innovations whose applications in the fashion industry are worth discussing. Some top apparel brands, such as Adidas, H&M Group, Patagonia, Gap, Everlane, and LVMH, prioritize blockchain technology in their supply chain. The technology ensures that the right garments or apparel are distributed to the right consumers. 

Customers generally prefer fashion companies that follow a fast and transparent supply chain, which minimizes the chances of roadblocks or bottlenecks. One of the best ways to achieve transparency is by using Blockchain management. While it may sound unfamiliar to you, by the end of this article, you will understand how blockchain technology and the fashion industry is interrelated. 

Introduction to blockchain technology 

Blockchain is a popular technology in the financial arena, as it is the system that runs leading cryptocurrencies such as Bitcoin and Ethereum. The primary objective of blockchain technology is to run activities smoothly in a private, safe, and secure manner. In simple terms, blockchain technology can be described as a set of records or data called blocks that are cryptically interlinked with one another for safety and security purposes. In a blockchain, a digital system is made for various transactions between multiple parties in a hassle-free manner. It is designed in a way that the transactions can be initiated automatically without any manual commands. The whole system is verified and highly secure.

Role of blockchain technology in the fashion industry

fashion

The financial and fashion industries are poles apart. However, blockchain technology is a technology that brings them together. Although a new term in the fashion business, some brands are employing this technology to track every step of their production processes. Because blockchain is safeguarded by secure, decentralized data storage technologies, consumers may be confident that the information they receive is correct.

Some major roles of blockchain technology in the fashion industry are listed below: 

  • A transparent supply chain minimizes delays and disputes, preventing any blockage in the supply chain. Through transparency in the supply chain, it becomes easier for retailers, manufacturers, and even suppliers to be aware of all the processes that are involved in designing, developing, marketing, and selling a single garment.
  • Real-time tracking of the product makes the chances of misplacement rare.
  • Blockchain technology allows the data to be interoperable. An unlimited number of parties can be granted access to transactions that take place within the fashion supply chain. 
  • Blockchain technology also helps in the protection of business operations against hackers and fraudsters.  However, it is important to set a new code of conduct when blockchain is being used in the fashion supply chain. New rules should be made for different transactions that take place in a fashion supply chain. Additionally, different standards have to be set for the permissible transactions that will take place over the supply chains. 

Benefits of blockchain in the fashion industry

Brands and manufacturers may contribute to a variety of benefits to the garment sector by utilizing blockchain technology in their supply chain. Some of the benefits of implementing blockchain technology in the fashion industry are discussed below.

In large companies where hundreds and millions of units are produced on an everyday basis, it is nearly impossible to track any error humanly. Such companies also have various shipments rolling out throughout the week. One is very much likely to miss out on shipment or find difficulty in tracking the right ones. All these problems can be solved by auditing. All the auditing does not guarantee that the cause of the damage will be determined; it is bound to give you a green flag on some of the errors present. This is where blockchain technology comes into play.

  • It makes the entire process easy and hassle-free. 
  • It makes transactions easier, safer, more reliable, and safer.
  • It is less time-consuming.
  • It is convenient and easier to use. 
  • It does not involve the use of third-party websites or authorities. 
  • It leaves room for fewer errors.
  • It protects transactions against malicious scams and hackers.
  • Anyone associated with the supply chain can access it. 
  • It makes the whole supply chain more organized. Thus, it boosts overall sales as most consumers now prefer a transparent system.

Fashion brands that are setting an example

Customers today are more knowledgeable and advanced since they are aware of their suppliers' immoral and environmentally destructive behaviors. As a result, they want to be responsible customers who buy from responsible suppliers. They are well aware that lack of transparency costs lives. Companies cannot ensure that human rights are honored, working conditions are appropriate, and the environment is protected unless they know where their products are manufactured, which is why transparency is critical.

Fashion brands such as H&M, LVMH, and Everlance have incorporated blockchain technology into their supply chain management.

Everlane 

Created in 2010 by Michael Preysman in San Francisco, Everlane is a renowned fashion brand famously known for its transparency in the supply chain. In the past, Everlane dealt with accusations of not respecting the labor law. Later, blockchain technology was incorporated to maintain the company's transparency and improve the brand's image in the eyes of all customers. 

H&M 

H&M is a fashion brand known for selling high-quality clothes, footwear, jewelry, and other items from the fashion industry. Arket is a subsidiary of this humongous brand that uses blockchain technology to improve the overall product's traceability. 

Final words

The fashion industry and transparency go hand in hand. Although the use of blockchain technology in the fashion industry is still in its early stages of development, it has a bright future ahead. Several renowned companies such as Walmart, IBM, Emerson, Hayward, and Mastercard have already employed this technology in their supply chains. It is high time that other companies also welcome blockchain with open arms.


When used correctly, blockchain may assist the fashion industry to prove its intention to focus on sustainability and quality. It also retains the margins and revenues that will keep the industry afloat regardless of how drastically the fashion trend changes.

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If you’re eager to position yourself as a leader in the digitally changed supply chain ecosystem, Fashinza is here to help you at every step. Fashinza is a B2B fashion technology company that provides adequate manufacturing support to all apparel companies. Fashinza uses AI algorithms and data science to help brands source products. They manage communication with the suppliers and manufacturers to keep their clients' supply chain fast and flexible.

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