How blockchain tech must help solve fashion counterfeit fraud
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Imagine you are the average consumer, you have worked long and hard for that one signature it-piece you have always wanted to have. After months and months of saving, you finally have enough money together to buy that item you had always dreamt of owning one day.
So you go to the store – the flagship store of your favorite brand – and fulfill your dream.
Right before you hand over your hard earned cash, you look at the store employee and you start to wonder: how can I be sure that this product is „real“. That it has been manufactured up to the highest standards and with the finest materials?
„Fact of the matter is, you can‘t really be certain that your product is not a replica and it is not your fault“
Most store employees will not be able to tell a replica from the real deal. It takes a keen eye and years of experience to spot a fake.
„This possess a large threat to both consumers, brands and retailers alike. Not to mention, honest producers of high quality goods.“
Before I dive into how blockchain tech can help solve parts of this issue, let me explain how these replicas get onto the market in the first place and how big the issue truly is.
How big is the problem really?
The National Retail Federation’s Return Fraud Survey says criminals often take advantage of retailers with relaxed return policies.
The survey reports that an astonishing 95.2% of retailers have experienced this most popular form of return fraud in the past year. While many retailers are tightening policies, some at the expense of customer service, the retail industry will still lose $9.6 billion in return fraud (source: https://www.thebalance.com/recognizing-return-fraud-2890255)
These numbers are staggering and going up rapidly as more retailers have started to bring their goods online in recent years.
How to replicas get onto the market?
A big and undisclosed problem for fashion retailers and especially those who offer their goods on the internet, are…
