Transparent Fashion: How Blockchain Technology Can Transform the Industry
Look. No one said it would be easy. Being crystal-clear to the public about everything you do as a business is like telling your Grandma what you did on your prom night. Calm down, I didn’t tell.
Creating a sustainable fashion brand has a lot of its challenges. But so does waking up and running five miles. Who does that anyway?
Brands must have trust and positive relationships with everyone in their supply chain to be sure that production of their products are truly sustainable. If there is a lack of transparency in any part of the chain, a label has difficulty tracing materials, and well, the chain breaks.
Another worry is finding materials that are sustainable and cost-effective. And same goes for the production methods.
And definitely not least, but last mentioned here, although consumers are beginning to see the problems of fast fashion, there are still many who look for low prices over sustainability.
Okay, that’s a lot. But let’s focus on one of these issues here. Transparency.
Transparency is Key
Being clear and honest with your customers—just like with your partner—creates a relationship that you can rely on. Building trust and being accountable for your actions are the true qualities of a leader.
Here are some ways that sustainable fashion brands are being transparent about their businesses:
Publishing detailed information about the materials and production methods used in their products like using organic cotton or low-impact dyes.
Sharing detailed information about where their materials come from and the locations of their factories and workshops.
Sharing information about their supply chain, including the names and locations of suppliers and manufacturers.
Communicating the environmental and social impacts of their products, like the use of renewable energy in production or the fair treatment of workers.
Working towards third-party certifications or audits like the Global Organic Textile Standard (GOTS) or the Fair Labor Association (FLA) to show true credibility.
Publishing an annual sustainability report, which provides a detailed overview of the brand's environmental and social performance and goals for the future.
Having clear and easy to access information about the product's life cycle.
Being open to questions and feedback from customers and stakeholders.
Let’s hear it for the brands that are already being open, honest, and trustworthy! These are the true heroes. The ones you want to follow and give your hard earned money to, am I right?
But, there are new technologies out there that are upping the transparency game. Let’s check it out.
Unlocking the Potential of Blockchain
Marci Zaroff, the founder of the eco-friendly brand, YesAnd, introduced me to blockchain technology. Consumers can scan the QR code on YesAnd’s pieces to track and follow along to see how and where their piece was made. It’s like the story of your clothing, which brings so much more meaning and appreciation for what you wear.
So what’s blockchain technology? Imagine a digital notebook that keeps track of information. And in this notebook are a book of notes where each page contains a bunch of facts and once more are added, they can't be removed. People trust it to keep important data safe and accurate because the information cannot be deleted or changed.
This technology can be used for things like making sure digital money stays safe and making sure information about things like supply chain is accurate and can't be edited.
Blockchain technology can bring many benefits to fashion brands, for example:
Supply chain transparency: Brands can use blockchain to track the movement of goods from suppliers to consumers, providing customers with detailed information about the origin and journey of the products they purchase.
Traceability: Blockchain can help brands to trace their products through the entire supply chain, from the raw materials used to the final product, allowing them to monitor and improve the sustainability of their production process.
Counterfeiting: Blockchain can help fashion brands to prevent counterfeiting by creating a digital trail that can verify the authenticity of products.
Automation: Blockchain can automate many processes that are currently done manually, such as the payment process which can reduce operational costs
Auditing: Blockchain can enable fashion brands to be audited for their sustainability claims, by providing a record of the product's life cycle
Money, Money, Money…Money!
But how much does it cost? That’s usually the next question, yea?
The cost depends on the brand, size, and how (scale of project) you are using the technology. However, blockchain is a fairly new technology, so it can be pricey. Some factors you may have to consider are development, hardware and infrastructure, integration, compliance, and auditing. The cost of starting to use blockchain technology in your fashion brand is likely to decrease over time as the technology begins to get more popular. Also many companies are offering blockchain-as-a-service (BaaS) which allows companies to use blockchain technology without having to build and maintain their own framework. For example, YesAnd uses Storybird.
Marketing
Marketing your blockchain technology is an essential factor in getting your new technology to work for you. Since this is a fairly new technology, consumers may not know much about it, so bringing awareness to the benefits will build connection, value, and credibility with your audience.
Marketing blockchain differentiates your brand from other competitors and brings in customers that are looking for more transparency and traceability in their products.
Blockchain technology can be a great addition to branding your business also. Find a great sustainable copywriter to help generate leads from customers who are looking for brands that they can trust.
The Bottom Line
The cost of blockchain technology may outweigh the benefits it can bring. Cost savings, increasing efficiency, solving counterfeiting issues, and improving transparency and trust with your consumers and suppliers are all positives to look at for your brand. On the fence? This is definitely something you may want to consider when you’re planning to increase transparency for your sustainable brand. Used correctly, this technology can shed light on how much your pieces are truly worth.
