Bitcoin is becoming increasingly popular among fashion lovers. Through this digital currency, one can shop online or buy accessories and apparel across the globe. However, some factors let Bitcoin impact the fashion industry to fetch lucrative business opportunities for all players in this sector. Here are some factors are given below:
To begin with, one can use Bitcoin to carry out international transactions online without having to pay any additional fee or commission. All you need to do is make use of a ‘Xapo’ debit card with appropriate funds in your wallet and shop at any online retailer across the world.
However, there is no need to share your credit card or debit card details with them, and you can carry out transactions without sharing sensitive information that could put you at risk of identity theft.
As Bitcoin does not involve any intermediary, people who want privacy about their online transactions can use it. The only thing the online shoppers need to do is create a Bitcoin wallet and use it for carrying out transactions.
International Fashion E-Commerce
Another reason people love Bitcoin has to do with its cross-border nature, as it offers opportunities for individuals who want to make money by selling their products internationally. This way, if you are a fashion designer or manufacturer, then it is your chance to shine in the international market.
As Bitcoin transactions are not subjected to any taxes, individuals can shop without worrying about additional charges levied on them when making purchases online.
6 Ways How Bitcoin Has Benefited the Fashion Industry
Bitcoin Boosts Fashion Retail
Bitcoin’s underlying technology, blockchain, is being used by many fashion retailers to create sales channels for their goods. Blockchain enables buyers and sellers of goods to interact directly, removing the need for a central authority that typically facilitates all transactions. The result? More money in buyers’ pockets and lower prices for consumers because retailers can cut their overhead.
Companies like Shop Fashion Benefit, the self-described “world’s first luxury retail store for cryptocurrencies,” use blockchain technology to sell their goods. The boutique sells men’s and women’s fashion apparel, shoes, and accessories.
Fashion retailers also use blockchain for product authentication by tagging items with a digital signature. In addition, brands can use the technology to track an item back to its origin, thereby ensuring customers purchase legitimate goods.
This allows brands to reassure customers of their authenticity and gives anti-counterfeiting authorities a chance to crack down on fakes by pinpointing where the fraudulent products originated.
Bitcoin Payment Option
Fashion retailers are also accepting Bitcoin as payment. So instead of having to pay with traditional credit cards, customers can use cryptocurrency as a form of payment. To accommodate this growing transaction channel, retailers like Gojek and ZALORA now accept Bitcoin as a form of payment.
Big Data for Brands
Blockchain technology has been a boon to brands as well. For example, fashion retailers can now track consumer trends through “word of mouth” customer reviews permanently written into the blockchain. This new data becomes available for brands to analyze shifts in their customers’ preferences and target them with the right marketing message.
Fashion Tags on the Blockchain
Qilin.io, a subsidiary of blockchain company Qilimanjaro Group, has developed an open-source platform for registering digital rights to physical objects.
The company is working with fashion brands to register their goods onto blockchain platforms to fight counterfeiting and fraud. The Ethereum-powered platform provides a digital certificate of authenticity that anyone can verify at any time. Know more at Bitcoin investing.
Secure Payment System
Blockchain technology is also being used to power fashion retailers’ secure payment systems. The technology allows brands to offer customers an efficient way of paying for online purchases using cryptocurrency wallets. Cashaa, for example, is a blockchain-based financial services company that recently partnered with NATVAN, a fashion retailer in India.
There are several advantages of using blockchain technology for the international payment. First, this leaves room for many opportunities for people looking to make a difference in the Fashion Industry.