Post-epidemic era: How Blockchain Reveals the Stories of Luxury Goods to Consumers
Blockchain technology is finding its use in the luxury goods industry in the same way that it has become important in other sectors of the economy. However, the strides made in the pre-pandemic era in luxury and fashion industries have largely been reversed as businesses try to navigate through the crisis.
How Covid-19 impacted the fashion industry
The ongoing epidemic forced the fashion industry to take stock of the present, put in place measures to go on a recovery path, and shape the future. The first priority of the industry at first was to make sure that employees, customers, business partners, and other major stakeholders were safe.
The industry’s model was disrupted. Factories that produced handbags, perfumes and scarves among other things were repurposed to produce face masks and hand sanitizers.
Luxury shopping is characterized by people moving from their countries of origin to buy goods abroad. International travel has been limited and this has negatively impacted the industry.
The luxury industry is characterized by fashion weeks and trade shows have been limited due to lockdown restrictions. This has ripple effects as many workers in this sector lost their jobs.
Italy, a major hub for the fashion industry, produces 40% of luxury goods. In the wake of the coronavirus wave that wiped thousands of Italians, a large number of local factories were shut down.
The biggest losers in all of this could be workers. As early as April last year when the pandemic was starting to take its toll, more than 2 million Bangladesh workers risked losing their jobs as orders for clothes took a major knock.
The damage was not limited to shows, factories, and employees but business mergers and acquisitions.
The $16.2 billion acquisition of Tiffany by Louis Vuitton owner LVMH was scrapped because of the pandemic. Had it gone through, it would have gone down as the biggest deal in the luxury industry.
Customers define the meaning of fashion
The coronavirus pandemic changed the way the foundations of the fashion industry were laid out, but it did not take down the essential fabric that makes the fashion industry what it is.
At the end of the day, it is the role of the customers that define fashion.
Consumers have adapted to the new normal in preparation for a post-pandemic era. For now, this seems like a distant dream as healthcare experts have warned that the coronavirus could be around forever.
It is time for consumers to define new coronavirus-friendly fashion trends and host virtual fashion shows.
The shows will lack the glitz and glamour associated with these events but that seems like a reasonable price to pay given the circumstances.
Blockchain and the delivery of luxury goods to consumers
Blockchain certainly has several use cases in the luxury goods industry. This is mainly due to its nature as a public, decentralized, and tamper-proof ledger.
With the emergence of e-Commerce, many people are now shopping online where they have to enter sensitive details such as their names, ages, credit card details, and even residential addresses.
If this information spills into the wrong hands, the data could be used to steal from owners or to blackmail them.
Consumer data can be entered on the blockchain where it cannot be altered or viewed by unauthorized parties. Users are given the power to see how their data is used.
Social media companies are facing a backlash over how they collect, store, use, and distribute user data. The blockchain solves some of these data challenges.
How blockchain (FiO) can help the fashion industry
FiO provides built-in templates that businesses can use to turn their data into blockchain formation within minutes. Apart from blockchain, the company is spearheading the commercialization of cutting-edge technologies such as AI, IoT, 5G, and many more.
Their blockchain solutions are tailor-made to address the challenges facing the fashion industry, particularly in the time of covid.
Several big fashion brands have been in the news for the exploitation of workers. This is not good for public relations given that some of the major brands may not even be aware of such incidences.
Blockchains can be used to increase employee welfare as businesses can view the information about their employees on the blockchain.
One of the largest and most important uses of blockchain in the fashion industry is supply chain management. FiO’s enterprise blockchain solution gives companies full transparency on the journey taken by their products.
This reduces counterfeit products while giving customers peace of mind knowing that they are paying for the value they are getting. The product’s journey from the whole to the final store where it is sold is documented.
FiO is also able to provide blockchain solutions that monitor the deliveries of fashion products.
Wrapping it up
The fashion industry has seen its own fair share of ups and downs due to the pandemic that has resulted in lockdown measures in some parts of the world. This is in sharp contrast with the fashion industry that requires people to be about and about. Fashion is all about being out and being seen.
Despite these temporary challenges, blockchain technology can be a game-changer for the fashion industry. From minimizing counterfeit goods to tracking goods on the supply chain, FiO’s blockchain could offer more transparency to the industry.
With FiO’s blockchain solutions, brands can build better relationships with their clients, giving themselves an edge over their competitors.