Several months ago, major luxury brand Burberry came under heavy criticism for destroying more than £28m (US$30m) worth of its stock. The company burned its fashion and cosmetic goods, in a move to prevent these original items from being acquired and duplicated by counterfeiters.
The destroying of leftover or unwanted goods is a popular practice in the retail industry, as brands and retailers feel it is the most surefire wire to keep supply chains intact, and to combat the counterfeit industry. The environmental impact of this process, however, leaves a lot of room for concern.
According to a UNFCC report, the fashion industry contributes up to 10% of the global carbon emissions. If care is not taken to curb production processes that are detrimental to the environment’s wellbeing, this figure could rise at an alarming rate. Environmentalists all over the world have called on brands in the luxury industry to change their practices, and adopt more eco-friendly solution. Their calls are starting to be heard.
At the beginning of September, 2018, Burberry announced that it was ending the practice of burning unsold clothing, in a move to become more environmentally friendly. The company is the first major one to publicly end this harmful process of eliminating unwanted products.If more companies were to follow Burberry, and abandon the harmful practice of burning unwanted merchandise,
The need to bring sustainability to the world is a major driving force for LUXCHAIN and what we do. By creating an ecosystem for secondary luxury products, the recycling and reselling of luxury goods all over the world will take place in a far more efficient and transparent manner.
LUXCHAIN’s Decentralized verification solution is key to the ecosystem that provides authenticity and trust to users. Through the use of Digital Identity and Digital Assets, merchants will be able to keep track of all original luxury goods within the ecosystem — thus bringing down the rate of illegal counterfeiting. Merchants will also have a better grasp on the idea of price volatility and overstock issues, using LUXCHAIN intelligence.
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