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Blockchain and the Fashion Industry: why consumers and apparel manufacturers should care

Updated: Jan 28, 2019


@Fenwick&WestLLP

By Jillian McMillan

The use of blockchain in the clothing industry could change the way a consumer purchases clothing, handbags, or fashion in the very near future.[i] Blockchain could improve the fashion industry for consumers by tracking the ethical and environmental methods in which products are created.[ii]


More than any generation before, millennials are concerned about how the manufacturing of the clothing they purchase will affect the environment and whether this manufacturing is done in an ethical manner.[iii] Using blockchain technology, a consumer, while shopping, could scan a shirt’s tag to learn the details of every step in the manufacturing process. Applications such as Provenance allow a consumer to do just that. With Provenance, a consumer can input the ID number associated with a new purchase to verify how it was created. Provenance allows the consumer full access to a verified history of the supply chain for the item.[iv] This not only gives peace of mind to a consumer about how their product was created, but also could encourage other businesses to join in using blockchain technology for purposes of improving business.[v] Once the idea of blockchain in the fashion industry becomes more popular, it will be the norm for companies to ensure through distributed ledger technology that their products are not manufactured unethically.


In addition to reassuring consumers about how their clothing is manufactured, blockchain in the clothing industry could give consumers a better idea of whether their clothes’ manufacturing process is compliant with environmental laws.[vi] Specifically, blockchain could provide the government and environmentally friendly consumers with information about carbon emissions from manufacturing processes.[vii] Combined with a system that could control carbon emissions, blockchain could reduce human error in determining whether the amount of carbon emissions are non-compliant or excessive compared to other manufacturing processes.[viii] With the help of blockchain, greater sustainability can be achieved in the commercial apparel manufacturing process. In effect, the creation of apparel could become a much less harmful process for our environment.


Blockchain can address many problems in the business of manufacturing clothing. Specifically, blockchain facilitates transparency for consumers who want to know more about how their clothes is made. Clothing tags tied to a blockchain could deter manufacturers from utilizing unethical business models (low pay, long hours, and possibly, child laborers). Additionally, blockchain could reduce the carbon emission produced by the manufacturing of clothing. The fashion industry should keep an eye on this emerging blockchain space, as it may have a major impact in the way apparel is produced.


Works Cited:

[i] Radocchia, Samantha, Altering the Apparel Industry: How the Blockchain is Changing Fashion, (June. 27, 2018) https://www.forbes.com/sites/samantharadocchia/2018/06/27/altering-the-apparel-industry-how-the-blockchain-is-changing-fashion/#4240660e29fb.

[ii] See id.

[iii] Radocchia, Samantha, Altering the Apparel Industry: How the Blockchain is Changing Fashion, (June. 27, 2018) https://www.forbes.com/sites/samantharadocchia/2018/06/27/altering-the-apparel-industry-how-the-blockchain-is-changing-fashion/#4240660e29fb; Fu, B.; Shu, Z.; Liu, X. Blockchain Enhanced Emission Trading Framework in Fashion Apparel Manufacturing Industry. Sustainability 2018, 10, 1105.

[v] See id.

[vi] Fu, B.; Shu, Z.; Liu, X. Blockchain Enhanced Emission Trading Framework in Fashion Apparel Manufacturing Industry. Sustainability 2018, 10, 1105.

[vii] See id.

[viii] See id.


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