In the realm of fashion, an apparent reluctance towards opening up to digital progress has long been noticeable. This hesitance is attributed to high-end brands’ determination to maintain a meticulously crafted, exclusive image that the industry has carefully built throughout decades, emanating a sense of mystique and elitism that opposes the culture of digital evolution or transformation. Being primarily linked to limited access and singular, handcrafted, and rare pieces, the garment industry struggled to maintain a well-established identity. However, despite strenuous efforts to maintain an aura of uniqueness, the march of digitalization and technological innovation has made its mark within this sector as well.
Not a few are the examples of digital advancements embraced by luxury brands that explored and leveraged different technologies, whether we look into those provided with the help of artificial intelligence or blockchain. Numerous forward-thinking big-name fashion and luxury brands have been quick on the uptake and have not disregarded how the purchasing behavior of tomorrow’s customers is shaping. To not be taken aback by the increasing trend of looking into the Ethereum price USD and using it to buy fashion and luxury items, smart brands have implemented this payment method and gained a competitive advantage in the face of conservative companies. Crypto payments are no longer a concept that bewilders people; this has become the new standard. It’s now anticipated that more companies will integrate cryptocurrency payment gateways and undertake the requisite procedures to offer consumers alternative payment methods mutually advantageous for all parties involved. Businesses looking to adapt to the needs and preferences that will be forever changed know that the traditionalist patterns will gradually vanish.
Fashion brands are no longer strangers to digital transformations, as demonstrated by the numerous forays made into blockchain, cryptocurrency, and related fields. Acknowledging past initiatives and gaining insight into the fashion industry’s stance on blockchain technology can provide valuable foresight into what to anticipate from forward-thinking brands willing to embrace this technology in the future.
The first luxury blockchain is highly used around the world
Suppose you talked to people about blockchain being used in the luxury and apparel industry half a decade ago, bringing into discussion stablecoins, altcoins, Bitcoin, and other projects. In that case, you’d likely been looked at with bewilderment because the topic has long been something the world used to wrap its head around. However, future-oriented fashion businesses have successfully managed to bring clarity into the equation and decipher the complexity of blockchain, as the lid was being taken off this technology. LVMH, the renowned conglomerate of brands consisting of Dior, Louis Vuitton, and other market leaders, has already created a precedent with the development of an app that helps users track down the provenience of their products in certain instances. Aura Blockchain Consortium, a non-profit organization established in April 2021 by the famous global leaders in luxury offerings, namely Richemont-owned Cartier, Prada Group, and LVMH, is now used at large-scale and established a unique example for brands seeking solutions to fight counterfeiting. The consortium is proactively engaging in the development of blockchain tech by investing in related solutions and improving their accessibility and usefulness for regular customers and other interested brands.
These efforts bring the new cutting-edge blockchain closer to the world and make it easier to understand and leverage. It takes the QR code and a scanning app to directly identify certain luxury goods, track down the source of raw materials, find relevant information about the specific item, such as details about manufacturing, and ultimately gain extensive knowledge on the purchase made. This places the power in the hands of the customer, who can quickly get certificates of ownership and authenticity or break into resale more effortlessly. In certain instances, enhancing product traceability serves as a means to validate the authenticity of products, effectively addressing the longstanding challenge of dupes and fakes.
Dozens of brands are empowered to use this blockchain and take their relationship with customers and their image and reputation to a new level. Anticipate a continuation of tech-driven initiatives in the future as the complexity surrounding crypto and blockchain gradually wanes and customers’ standards are being raised and met in the luxury sector.
Brands that have made forays into the crypto payment system so far
Up to this point, several renowned brands have already undergone the required adaptations to facilitate transactions for enthusiastic cryptocurrency users, allowing them to purchase using digital currencies. Should you want to spend your virtual holdings on a piece of garment, you can look to creations provided by leading brands such as the following:
- Balenciaga – taking Ethereum and Bitcoin since 2022 when it implemented crypto payments for online purchases and even in some flagship US stores. The brand is expected to accommodate more cryptocurrency alternatives into its payment portfolio.
- Hublot – initiating crypto payments in 2022, the brand stated it will permit crypto transactions for transactions that exceed a specific limit.
- TAG Heuer – the famous Swiss sumptuous watch designer made crypto payments possible in May 2022 by accessing their website and completing the order for acquisitions surpassing a specific amount.
- Off-White – the Italian luxury fashion brand authorized crypto payments in flagship stores across Milan, Paris, and London in the spring of last year.
- Ralph Lauren – the brand has an extensive range of cryptocurrencies accepted, with Polygon and DOGE joining Bitcoin and Ethereum leaders.
- Farfetch – the website has given the green light to crypto transactions in 37 countries, taking six digital currencies, including USD Coin and Tether, among the best-established ones.
The wrap-up
The fashion industry embraces digital transformation despite initial reluctance. The widespread adoption of blockchain, owing to its potential to enhance various aspects such as customer experiences and supply chain management, has enticed many companies to adopt and integrate blockchain technology into their operations. Companies struggling to tackle the issue of counterfeit products and improve the transparency shown to customers resort to cryptocurrency and blockchain, which are gaining more traction as days go by.
It’s no longer surprising to find luxury brands capitalizing on these advancements in today’s landscape. In fact, this trend shift has become commonplace and encouraged, marking a notable transformation in industry practices.
The future is packed with surprises as blockchain technology evolves and businesses remain quick on the uptake to leverage the ongoing developments. Blockchain will only gain traction in the luxury and fashion industry and beyond, and small businesses will also have more possibilities to explore this sector as it becomes more easily integrable.
