Blockchain’s innovative technology creates new opportunities for the high fashion industry

Traditionally, the luxury fashion industry has been associated with high-echelon status. Predicts a return to pre-pandemic status with competitive price points driven by limited distribution and notable agreements. Overall, the luxury clothing and apparel market situation seems to have carved a niche for itself by focusing on a consumer who leaps towards luxury and product development. surrounding market situation.

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

While all of this looks promising, the luxury fashion industry faces major policy challenges. Among the most important are artificial. A sufficient number of brands within the care of multinational corporations specialized in luxury products such as France-based LVMH and Kering; which aims to maintain both access and exclusion within a highly competitive market. In 2020, President and CEO Kering Francois-Henri Pinault reported that the groups ’revenues reached 13.1 billion euros – about $ 15.49 billion in U.S. dollars.

Let’s face it, big brands go a long way in maintaining bans and fighting against importing billions of dollars worth of burning products. However, burning too many products to keep a ban does not sit well with consumers. And there is no letup. Case in point; user boycott campaign against luxury fashion house Burberry, which is headquartered in London, England – after the news of the burning practice was made public. In short, it is a business world with a caveat. And rightly so. Today, the interconnectedness of brands and customers has caused the voice of the people. In a word, the boycott led Burberry to end the practice of burning its excess products, but sadly, the damage was already done in terms of distaste consumers at that time.

Along with the uprooting of so many long-standing traditions in the aftermath of the pandemic, a growing number of fashion brands began to abandon the usual business practices inspired by the consciousness. awakened about the benefits of blockchain technology. I recently attended a remote forum run by experts on the opportunities for luxury and beauty fashion brands at New York Institute of Fashion Technology. At the moment, the winning brands are delivering an in-house approach to this direct technology as well as highlighting a unique market strategy that will encourage a call to arms.

Hiring is NFT’s blockchain technology Brian Foote – founder and CEO HUMBL – along with a new product line called Origin Assurance ™, addresses some of the challenges that could hinder the projected growth of the global fashion industry.

HUMBL Marketplace recently teamed up with renowned Hollywood designer Smallz + Raskind to tokenize and catalog prints on the blockchain, ensuring customers receive a verification certificate and a digitally signed QR code to track life of any product.

These days, it’s more and more important for retailers and consumers alike – to ensure accessibility in luxury fashion through blockchain. When it comes to millennials and Gen Zs, they often feel left out of the luxury shopping experience. At this point, most market groups are well aware that this age group had never had experience in obtaining goods. I believe I am making a speech now, but technology is the proof method for capturing this strong market segment.

“The use of luxury fashion on blockchain will create exciting opportunities for the high-end fashion industry and attract a young market,” Brian said. “HUMBL Studio is where tokens of the luxury fashion products, NFT” s, physical and esoteric assets take place on the blockchain.

It is vital that luxury fashion buyers find what they are looking for under one roof, and a market place that makes the buying experience seamless is crucial.

“In fashion, accessibility is essential for luxury brands to be relevant. Smart luxury brands accelerate the blockchain-supported network 3 to be accessible in both primary and secondary resale markets, especially in luxury brands where the lifecycle is more length of collection. ”Said Foote.

Unlike in the past, consumers of high-end luxury fashion are no longer limited to the shopping experience, as technology now brings the most valuable experience for high-value people to the homes and their offices, and even on their palms. VR technology captures the fitness and the right measure, while blockchain maintains a track record for repetitive buying experiences.

This is even more common today as physical stores remain closed due to the pandemic. Max Krupyshev, CEO of CoinsPaid, a crypto payment processing gateway also raises the same views. His company has seen more integration from luxury brands since the outbreak began. “With blockchain technology and the adoption of crypto as a payment method, more luxury brands can reach a wider circle of customers and especially millennials, who are the biggest fans of digital assets,” Krupyshev said.

According to a Harvard Business Review report, total global trade costs manufacturers $ 4.5 trillion, with the luxury goods market accounting for 60% to 70% of that figure. Another report by the World Trademark Review put the losses caused by counterfeit luxury goods in 18 U.S. states at $ 12 billion annually.

When questioned about the importance of implementing Blockchain technology in today’s luxury sector Director Luca Spano at IFG Men’s Fashion this had to be said. “This is already an important part for many businesses and it is essential that we all get started a little sooner than later, Covid has moved our business 10 years on and made us realize what can happen. make your technology keep the economy moving and strong. Marketing needs to think ahead and definitely make blockchain implementation one of their top priorities. ”

Tokenizing on Blockchain allows valuable luxury products such as bags, sneakers or luxury watches to assign a unique identity that is accessible. The identity of the product is recorded in the blockchain ledger and it is possible to track it until it reaches the end user. So far, consumers are increasingly concerned about living a brand culture by knowing their production route from start to finish. This uses technology to eliminate the need for a wasteful and environmentally harmful approach to counterfeiting in high fashion.

Rafael Papismedov, Managing Partner and Director of Strategy at HB Antwerp:“Innovative blockchain technology enables HB Antwerp to track and trace the entire process from mine to branch. This is crucial for today’s luxury consumers who are on average much younger than they were just five years ago, and are mostly female. Millennials and certainly Gen Z are generally more self-confident and knowledgeable about the world than previous generations. They want answers to their questions and emphasize fair trade. They want to find out what conditions products were made in, what the ecological impact was, the working conditions in which they were made, and they want to find out about cargo products. -use… whether it is chocolate or diamonds.

We use blockchain technology and data visualization techniques to monitor and map every step in the process from mine to gem. We have created an ecosystem called Signum, in which the participating participants exchange information with each other, both on the mines side and on the jewelers side. Thanks to this Signum ecosystem, jewelers working with HB Antwerp today are the only ones who can tell their users where their Signum-diamond comes from, as it was. mining, when it was discovered. ”

At this point, I think luxury fashion should not be limited to the traditional ideas that started it. By maintaining prohibitions and ensuring anti-counterfeiting, technology remains the best bet on solving most of the current luxury fashion challenges.