Blockchain technology could help in making the fashion industry more transparent.
In today’s world, fashions brands are becoming more environmentally-conscious. However, the process of clothes production often involving complex global supply chains and cannot ensure the uses of environmentally friendly materials. Now, with the blockchain technology, TextileGenesis believes that it can help with the situation.
TextileGenesis is a company based in Hong Kong and India. It aims to make the fashion industry more transparent by using blockchain to digitalize the supply chain. With the uses of this technology, it can help brands track clothes production from the raw materials to the finished products.
According to the founder of TextileGenesis, Amit Gautam, he said that sustainability has become mainstream. “We see a heightened sense of urgency and a strong pull from the consumers as well as a push from brands to drive sustainability as the core value proposition.”
“The textile industry is one of the most fragmented industries on the planet,” Gautam said. Besides, he says the supply chain for a simple clothing item often consists of up to seven different manufacturing stages across different countries. “The raw material sometimes exchanges 10 hands before it is converted into a t-shirt,” he added.
How blockchain helps in the process
TextileGenesis uses the technology to keep track of the record by creating a permanent record of every stage of the production. Blockchain is essentially an online public ledger in this case. The company uses digital tokens to provide a time-stamped record of the production process through the logistical network. Once the tokens have been logged, no changes can be made.
“Once you have transparency within your supply chain, then you can reduce your environmental impact and improve overall quality,” he adds.
Since launching two years ago, the company has won $180,000 Global Change Award for innovations promoting a greener fashion industry. Moreover, the company has run a pilot project with H&M, tracing recycled polyester and certified responsible wool.
This year, TextileGenesis plans to collaborate with brands and manufacturers located in India, Bangladesh and China.
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