IBM (NYSE: IBM) and KAYA & KATO, a German manufacturer of uniforms and workwear, have joined forces to develop a blockchain network for the fashion industry. The initiative counts on the support of the German Federal Ministry for Economic Development (BMZ) and is designed to create transparency on the origin of the garments. The network will provide open access to information regarding the fiber used or how the final product was completed, giving consumers the confidence that their clothes are produced in a sustainable way. More and more fashion companies are adopting blockchain technology to improve their supply chains or to build trust in their processes of verifying the authenticity of products.
“Blockchain technology is a catalyst for collaboration and transparency across industries and within supply chains,” said Christian Schultze-Wolters, Director of Blockchain, IBM. “Blockchain technology is now being used to increase visibility and agility in supply chains in industries such as automotive manufacturing, mining, electronics manufacturing, and even the cultivation and distribution of many types of food. shared visibility, technology helps to promote trust between companies and their suppliers, businesses and especially their consumers. We want to lead by example in the sector and offer other companies the opportunity to join us in promoting development and contributing to create solutions for the supply chain “.
Digitization of sustainability, an unexpected outcome of the global crisis
There is a growing demand from consumers to understand the environmental impact of the products they buy. According to a global study conducted this year by the IBM Institute for Business Value in association with the National Retail Federation, 77% of consumers surveyed say sustainability matters to them and 57% of respondents said they are willing to change their purchasing habits in helping to reduce the negative impact on the environment.
In the apparel industry, these attitudes are more prevalent and more important to young demographics. A recent European consumer survey conducted by Morning Consult, commissioned by IBM, found that 75% of respondents said they were concerned about the level of waste in the fashion industry. Additionally, 64% of respondents said they would be more likely to buy the garment if new technologies could prove the sustainability claims.
Blockchain network for the benefit of sustainable and ethical producers and labels
“The progress of sustainability and digitalization is fundamental to our forward-looking approach. This project combines both aspects in an excellent way by promoting transparency of the supply chain. For KAYA & KATO, there are multiple compelling reasons to start the development of a blockchain network and we look forward to the implementation and look forward to the first solutions in collaboration with IBM “, says Dr. Stefan Rennicke, co-founder and managing director of KAYA & KATO GmbH.
This new application of blockchain technology to document and trace the fabric supply chain will allow organic cotton suppliers and customers of KAYA and KATO alike to identify the origin and place where the fabrics were processed, as well as to gain an understanding at every stage of production and distribution. The goal is to create transparency and help develop a secure protocol for the traceability of ecological materials. All authorized parties involved will be able to access transaction data recorded in chunks in an immutable record on the chain. “The progress of sustainability and digitalization is fundamental to our forward-looking approach. This project combines both aspects in an excellent way by promoting transparency of the supply chain. For KAYA & KATO, there are multiple compelling reasons to start the development of a blockchain network and we look forward to the implementation and look forward to the first solutions in collaboration with IBM “, says Dr. Stefan Rennicke, co-founder and managing director of KAYA & KATO GmbH.
Many in the fashion industry are working to help address changing consumer attitudes by creating ways to be more transparent about the environmental impact of the materials they use. Blockchain is well suited to help apparel manufacturers and their suppliers work together to create a permanent and immutable record of the origin of all materials used in manufacturing to build trust.
