What is the impact of blockchain on the fashion industry?
The fashion industry is one of the most significant sectors in the world. The contemporary fashion sector is a combination of technology, creativity, innovation, and apt marketing.
Today, you will read about many technologies that nourish this domain. Many companies, such as VR development, blockchain development company, etc., now play a vital role in developing this industry.
Many technologies are a part of this ever-growing industry. From the manufacturing of raw fabrics to delivery of the fashion goods and handling the returns and exchanges in online apparel delivery, technology can help a lot. But instead, various technologies, when incorporated precisely, can improve productivity and scale up your fashion business. Furthermore, blockchain is one of the powerful technology that benefits the fashion industry.
Let us reveal how!
But before that, let us have a tech-fashion talk today!
Significance of the fashion industry
- According to Grand View Research, the year 2021 records a market share of USD 993.6 billion. Its growth will scale at the CAGR of 4% by 2030.
One of the biggest industries among all the top domains is the fashion industry. You can understand its worth in the global industries by the numbers above.
Basically, the fashion sector is a large canvas. It covers many small and big domains under it. This industry is not only limited to retail or whole fashion stores around. But, it is much more than that. This industry covers many crafts persons, fabric manufacturing sectors, tailors, skilled embroiders, and many tiny and big innovators.
In general, there are four levels in the fashion industry.
- First, manufacturing of the raw material
- Second, the creation of fashion goods
- Third, sales
- Forth, advertising and promotion
While going through these levels, there requires a lot of robust processes. However, nowadays, many technologies have made it possible to give the technological cutting edge to the creative process of fashion creation.
Technological trends in the fashion industry
The contemporary fashion domain makes use of many technologies. For example, artificial intelligence plays a vital role in developing many parts of this industry. Primarily, artificial intelligence can boost the customer’s shopping experience. In addition, it analyzes shopping data. Chatbots and apt suggestions are AI’s best practices that enhance customers’ fashion shopping experience.
Another critical technology that improves the experience of the fashion domain is IoT. In the fashion industry, IoT can be incorporated by using wearable devices, smart clothing, responsive sportswear, etc.
In addition, virtual and augmented reality are the two critical technologies that are being used in the fashion domain. They play a vital role in transforming the user experience. For example, users can try the outfits before buying with virtual and augmented reality. Moreover, both technologies engage users and have a positive impact on revenue.
Now, let us understand how blockchain can help the fashion industry.
Read more: Education Metaverse
Impact of blockchain evolution on the fashion industry
- According to Fortune Business Insights, the year 2022 recorded a market value of USD 7.18 billion in the worldwide blockchain market.
- Moreover, it is supposed to reach USD 163.83 billion by 2029.
Does the industry with such a vast market size have significance in the fashion industry?
The answer is definitely, yes!
Blockchain can help the fashion domain in many ways. Let us understand how it can benefit the fashion sector!
It reduces counterfeiting.
Counterfeiting is one of the biggest challenges in this industry. When the blockchain is implemented in the supply chain of the fashion domain, it can counter this issue. Blockchain will give the product details of the original product to the customers. In addition, this will avoid duplicity and reduce counterfeiting.
It offers many features to the supply chain of the fashion industry.
The supply chain is one of the robust areas of many industries nowadays. Especially in online fashion shopping, the supply chain has a vital role. Blockchain can easily and efficiently avail of the tracking of products. It brings transparency to the supply chain. In addition, it works keenly on providing security with blockchain’s powerful features.
Blockchain makes the fashion business system more efficient.
The fashion business has many small and big processes involved. Each process in this system must be efficient to create quality fashion products. In addition, the number of processes involved increases the amount of records or storage. In such a case, blockchain can help. Blockchain’s capacity to handle individual records can benefit each process. Also, as nobody can modify this data, it is safe and secured.
NFTs add value to the industry.
In the previous point, we discussed one feature of blockchain- irreversible records. On the basis of this, one of the significant technological changes has taken a boom. It is none other but the NFTs. NFTs are non-fungible tokens. They cannot be replaced or edited or duplicated. Moreover, they have their unique identities.
But how can NFTs benefit the fashion industry?
NFTs can bring the physical and digital fashion world together. In addition, NFTs bring authentication to the fashion industry in a digital way. To avoid the duplicity of the apparel product, a user can get its digital identity and ownership. Furthermore, this will help reduce frauds and scams in this industry.
One more exciting way where NFTs can be used in fashion is to show off! Yes, one can literally show off with NFT fashion.
Have you heard about digital avatars? These virtual digital avatars have the basis of NFTs. In addition, these virtual avatars can create a massive engagement. Furthermore, they can be used to promote apparel products. Moreover, this will not only boost user engagement but also help in branding and marketing.
The pair of fashion and technology is an unlike yet stunning combination. Technology, in many ways, can nurture the fashion industry. The day is not far when IoT companies, AI firms, AR and VR development providers, and blockchain and NFT development company will boost the growth of the fashion domain.