How Blockchain, VR, and AI transform the Fashion industry from the inside out
Client: Fashion Fusion Tech summit
Industry: Fashion and tech
Duration: 23 September 2024, conference in NYC
Objective: To design and implement a cohesive and compelling purpose statement for a Swiss bank that would resonate across all legal entities globally, including those in Asia and the US. This initiative aimed to align the organization's vision, mission, and values, and foster a unified culture within the company.
What is the story? I recently attended the Fashion Fusion Tech Summit in NYC, where leading industry innovators and entrepreneurs shared how technology is transforming fashion and reducing its ecological footprint. The fashion industry produces an estimated 92 million tons of textile waste annually, a major source of consumer frustration. Brands risk reputational damage, operational inefficiencies, and regulatory non-compliance if these issues are not addressed effectively.
Challenges:
Fast fashion brands were increasingly seen as unsustainable, damaging their reputation and eroding consumer trust. Additionally, poor inventory management led to overproduction and waste, increasing operational costs and contributing to environmental harm. New regulatory requirements, such as the EU Digital Product Passport, also posed compliance risks.
“We need to tackle these problems head-on. The fashion industry has been too slow to address its environmental impact. Consumers want transparency and want to know where their products are coming from. We’re at a point where if we don’t adapt, we risk not just reputational damage but losing the trust of the people we rely on.”
Photo by Sara Kurig on Unsplash
Solution: At the Fashion Fusion Tech Summit, participants showcased how blockchain and virtual reality (VR) can be leveraged to address these risks:
VR for Reputational Risk: As explained by Iris Pan, VR allows brands to teleport consumers into the heart of textile waste ecosystems. This immersive experience provides a powerful, emotional connection to the environmental impact of fast fashion. Consumers can "grab" pieces of textile waste and repurpose them, which helps brands manage reputational risks by educating consumers about their sustainability efforts and fostering trust and loyalty.
Blockchain for Supply Chain Transparency: Navroop Sahdev discussed how blockchain enhances traceabilityand helps track the origin of products throughout the supply chain. Blockchain creates a secure, decentralized ledger, ensuring that all parties in the supply chain have access to transparent and immutable records. This level of traceability feeds directly into supply chain transparency, giving consumers confidence about where and how materials are sourced, ensuring that brands can meet growing demands for sustainability and accountability. This also helps fashion brands comply with new regulations like the EU Digital Product Passport, as it allows for accurate documentation of product origins and material sourcing.
AI for Operational Risk: AI-driven supply chain optimization, as discussed by other summit participants, allowed companies to produce only what was needed, reducing overproduction and operational waste. AI helped predict consumer demand patterns, making production more efficient and sustainable.
“We understand that we are part of a broader problem but are committed to making changes. We’ve been making progress, but our biggest challenge is scaling sustainable practices while maintaining our business model. Transparency and supply chain efficiency are key areas where we need to improve, and technology will play a major role in making that happen.”
Outcome:
Enhanced Reputation: VR experiences, like those described by Iris Pan, helped rebuild consumer trust by showcasing the brand's commitment to sustainability in a more immersive and engaging way.
Operational Efficiency: AI reduced waste by optimizing supply chain processes, ensuring that production was aligned with consumer demand.
Supply Chain Transparency: Blockchain, as highlighted by Navroop Sahdev, provided full traceability, allowing brands to meet consumer expectations for transparency and ensuring compliance with regulatory requirements.
Conclusion: This project demonstrated the importance of effective project management and stakeholder engagement in driving strategic initiatives within a global organization. By aligning the efforts of various internal and external stakeholders and managing a complex, global rollout, we were able to deliver a purpose statement that not only reflected the Swiss bank’s aspirations but also resonated deeply with its diverse employee base. The successful implementation of this project has positioned the Swiss bank to move forward with a clear, unified purpose that will guide its operations and strategy in the years to come.
The entrepreneurs and innovators who participated in the Fashion Fusion Tech Summit are at the forefront of driving the transformation of the fashion industry. By leveraging cutting-edge technologies like VR, AI, and Blockchain, they are not only addressing the sustainability crisis but also reshaping how the entire industry operates. These technologies offer solutions that can transform the fashion sector into a more transparent, efficient, and environmentally responsible ecosystem.
From providing consumers with immersive VR experiences that build trust, to utilizing blockchain for full supply chain transparency, the entrepreneurs showcased how these innovations are key to the transformation of fashion. Their vision and use of technology are enabling brands to tackle the most pressing challenges, from overproduction to regulatory compliance, and to ensure that fashion becomes a more sustainable and forward-thinking industry.
This fusion of entrepreneurial spirit and technological innovation is revolutionizing the way the fashion industry addresses its ecological footprint, ensuring that transformation happens not just at the operational level, but throughout the entire value chain.
Sources:
"92 million tons of textile waste annually" – Ellen MacArthur Foundation, A New Textiles Economy: Redesigning Fashion’s Future, 2017.
Stella McCartney quote – Vogue, Stella McCartney on Sustainability and the Future of Fashion, 2019.
Helena Helmersson (H&M) quote – Business of Fashion, H&M's Sustainability Challenge: Scaling Without Sacrificing the Bottom Line, 2020.
Fashion Fusion Tech Summit, 2024.
OECD, "Blockchain for Sustainable Supply Chains: Enhancing Traceability and Efficiency," 2020.
Harvard Business Review, "How Blockchain Can Help Combat Supply Chain Fraud," 2019.