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31/03/2021

Blockchain Technology Opportunities For The Fashion Industry

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Innovative Blockchain Technology Creates New Opportunities For The High-End Fashion Industry

ForbesTraditionally, the luxury fashion business has been associated with an upper-echelon status. Predicting a return to pre-pandemic status with competitive price points driven by limited distribution and celebrity endorsements. Overall, the luxury apparel and accessories market segmentation has seemingly carved out a niche by focusing on a consumer who leans towards luxury products and developing a market segmentation around it.

According to Statista, In 2021, the luxury global fashion industry is currently estimated to be about $107.9 billion dollars. This robust market segmentation has achieved these promising numbers during the year of the pandemic. More importantly, the market segmentation has an expected annual growth of 4.8% (CAGR 2021-2025).

Although this all sounds promising, major policy challenges face the luxury fashion industry. Among the most important is counterfeiting. An abundant number of brands within the portfolios of multinational corporations specialized in luxury goods such as French-based LVMH and Kering; who aim to maintain both accessibility and exclusivity within the highly competitive marketplace. In 2020, Kering’s President and CEO Francois-Henri Pinault reported the groups revenue to have reached 13.1 billion euros- roughly $15.49 billion in US dollars.

Let’s face it, major brands go to great lengths to preserve exclusivity and fight counterfeiting including burning products worth billions of dollars. However, burning excess products to maintain exclusivity does not sit well with consumers. And there’s no letup. Case in point; a consumer boycott campaign against luxury fashion house Burberry, headquartered in London, England- after the news of the burning practice had been made public knowledge. In short, it is a business world of caution. And rightly so. Nowadays, the interconnectivity between brands and customers have given rise to the voice of the people. In a word, the boycott forced Burberry to end the practice of burning its excess products, but sadly, the damage had already been done with respect to consumer distaste at that time.

Employing blockchain technology is NFT’s Brian Foote—founder and CEO of HUMBL—alongside a new product line called Origin Assurance™, is targeting some of the challenges that may hinder the projected growth of the global fashion industry.

Read On Forbes Here