IBM has partnered with German textile manufacturer Kaya&Kato to develop a blockchain network for sustainable fashion.
IBM is the global market leader in blockchain services, followed closely by Accenture and Infosys, according to the latest research from the premier global market intelligence firm IDC.
As one of the largest blockchain consulting firms in the world, IBM's new partnership could help the whole apparel and textile industry become more sustainable.
Blockchain technology can track the origin of fabrics used in the clothing industry. It allows suppliers and customers to identify where their fabrics are processed.
The system offers many advantages that help manufacturers and fashion brands understand each step of the production and distribution processes.
Germany’s Federal Ministry for Economic Development supports this initiative. And IBM said in a statement that the development of a blockchain network could greatly benefit consumers:
“The network is designed to create transparency about the origin of garments, from the fiber used to the completion of the final product, and to provide consumers with the knowledge that their clothes are sustainably produced.”
Sustainable fashion is a growing market that offers many opportunities, including the development and application of new technologies.
The global ethical fashion market is expected to reach USD 8.25 Billion by 2023 at a compound annual growth rate (CAGR) of 10.33%.
Sustainable fashion is becoming increasingly popular globally, particularly among Europe’s younger demographics.
IBM commissioned a study of European consumers through Morning Consult. The results reveal that 75% of respondents say they are concerned about waste in the fashion industry.
If new technologies could verify sustainability claims, 64% are willing to buy sustainable clothing.
Blockchain technology is helping supply chain logistics through improved traceability. It's one of the biggest value drivers of blockchain integration.
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