Blockchain's Role In Fashion and Farfetch Rescues Luxury Retailers

BLOCKCHAIN AND FASHION

Blockchain is among one of the top new technologies at the root of fashion innovation. It's the latest buzzword, one that only few fully understand. What is it exactly? An incorruptible digital ledger that can be programmed to record financial transactions and virtually everything of value.

In layman's terms - an un-hackable database of information and transactions.

Fashion's adoption of blockchain can be used to instantly verify where materials are sourced from and where items are produced. Supply chain management just became (a bit) more seamless. Supplier records can't be lost, altered, or destroyed, and branded goods can easily be verified for authenticity. For luxury consignment retailers and shoppers, this reduces likelihood of counterfeiting and fraud.

Early adopters include Chinese e-commerce company Alibaba, which has the largest-scale use of blockchain technology in place to prevent counterfeiting and to track products.

WHY WON'T NIKE "JUST DO IT"

After decades of surpassing sportswear competitors, Nike is beginning to lose buzz to its rival Adidas. While the athletic brand served as a wholesaler to various retailers for the past several decades, industry changes have shaken up its brick-and-mortar partnerships.

In the midst of perfecting its digital strategy and capitalizing on the loyalty of sneakerheads, Nike has recently lost four executives. Allegations of company misconduct have led to several abrupt departures in recent weeks. Its struggle to overcome company diversity and equality hurdles could plummet public perception since consumers hold retailers more accountable than ever for social issues. In fact, 48% of shoppers place importance on retailers taking stances on gender equality and will make purchases based on these decisions.

Although Nike recently announced new efforts to reach out to the female consumer market, why can't the sports giant "just do it" inside its four walls?

FARFETCH TO THE RESCUE

Farfetch is developing a technology ecosystem for luxury retailers.The company is launching an emerging technology accelerator partnering with ten start-ups. As a marketplace that connects consumers to luxury boutiques and brands, Farfetch wants to reposition itself as a solutions platform for the luxury industry in order to combat digital changes.

Its operating system provides an array of services retailers can adopt online or in-store. Despite the rise of e-commerce, the majority of luxury sales will continue to take place in physical locations. Features like mobile payment systems or tools tracking customer behavior across multiple stores will aid luxury retailers in perfecting the consumer shopping experience.

AMAZON RUNS ON PRIME TIME

In its first public disclosure on the amount of consumers using Prime, Amazon has announced an enrollment that exceeds 100 million members globally.

The program is rapidly expanding, adding new perks like free two-hour delivery globally, and in-home convenience with Key. Amazon's speedy growth can be attributed to its customers, who Jeff Bezos claims to be "divinely discontent." Prime has changed the way consumers shop, and they're constantly expecting more. For U.S. members, the program goes beyond free shipping, incorporating free Kindle books, Prime video, and photo storage space similar to DropBox.

As fulfillment speed becomes even more critical to success, will Amazon exceed its customer's expectations...or has the digital giant created a monster with an insatiable appetite?

THIS WEEK'S BRIGHT SPOT

Britney Spears is partnering with Epic Rights to launch a contemporary lifestyle collection, anticipated to launch in 2019. Oops! We think we're in love.

A legend in pop, Spears has sold more than 70 million albums, singles, and songs. Aside from music, her reach is global. The singer boasts a fragrance collaboration with Elizabeth Arden which is available in more than 85 countries.

The lifestyle collection is an opportunity for Spears to share her style and fashion sense, while continuing to expand a global brand presence. Loyal fans will be able to connect with the pop star and see her in a more authentic light.

Who's going to be clad in Britney gear next year?