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Autify Network Set to Drive Innovation in Fashion Industry with Decentralized Sourcing

Autify Network is gearing up to redefine the fashion industry, utilizing blockchain to enhance sourcing transparency and security. This strategic move promises to elevate standards and build trust in the industry by mitigating issues of traceability and authenticity.

The global Luxury Fashion market is projected to generate a revenue of over $115 billion this year. It is also expected to experience a compound annual growth rate (CAGR) of 3.25% from 2024 to 2028.

And in this growing and fast-paced world of fashion and luxury, where trends come and go overnight, sourcing isn't just a behind-the-scenes operation — it's a critical ingredient for success. 

Brands are increasingly recognizing that the way they source materials directly impacts their market standing and sustainability.

With consumers more tuned in to where and how their products are made, brands that nail their sourcing strategies can better meet demands for quality and ethical standards, setting themselves up to compete and lead in their markets. 

However, it isn’t news that the industry faces significant sourcing challenges. Centralized sourcing models, often preferred for their simplicity and cost efficiency, are increasingly becoming a liability, particularly in terms of quality control.

This model can lead to inconsistencies in product quality as brands depend heavily on single suppliers, making them vulnerable to any dips in their suppliers' standards. 

Furthermore, issues of traceability and authenticity plague these centralized systems; it's tough to track the origins of materials and finished products, leading to gaps in authenticity that savvy consumers are quick to notice. 

Adding to the complexity, traditional sourcing methods confront substantial environmental and ethical challenges. A Deloitte report states that the fashion industry has become unsustainable. It, in fact, accounts for up to 10% of global emissions, and often, workers within the supply chain are not guaranteed fair wages or conditions​​. 

“The high risk of counterfeits in centralized sourcing networks poses a severe threat to brand integrity and consumer trust,” said Nabarun Chakraborty, Founder & CEO of Autify Network. “Each of these factors compels a shift toward more robust, transparent, and decentralized sourcing solutions to safeguard and enhance brand reputation.”

Decentralized sourcing addresses several of today's supply chain challenges in the fashion and luxury sector by dispersing the procurement processes across multiple suppliers from different locations.

This strategy not only mitigates risks associated with reliance on a single supplier but also enhances flexibility to adapt to market changes and reduces the potential impacts of regional disruptions.

Decentralized sourcing is increasingly recognized not merely as a necessity but as a strategic advantage that can foster competition among suppliers, potentially lowering costs and encouraging innovation. 

Blockchain-powered supply chain management startup, Autify Network aims to transform supply chain transparency by offering an immutable and transparent record of transactions and product movements. 

Blockchain's features are particularly suited to decentralized sourcing as they ensure that all transaction records across the supply chain are not only visible but also permanent and verifiable without a centralized authority.

Backed by entities like Loop Ventures, Sia, NEAR, Stellar Community Fund, and Microsoft for Startups, Autify Network is well-positioned to lead transformative changes in sourcing strategies. 

“By integrating innovative blockchain solutions, we are working towards providing a secure, transparent, and efficient solution that addresses common supply chain challenges such as counterfeits and inconsistent quality, ultimately enhancing the integrity and reliability of the supply chain network​,” added Chakraborty.

Moreover, Autify Network is also setting the stage for further enhancements in blockchain applications within the supply chain. The company integrated with Sia Storage and bagged a grant of $105,000 from the Sia Foundation. 

The team is currently exploring additional functionalities that could seamlessly integrate with their existing systems, focusing on capabilities that could lead to an on-chain certification process.

This move is poised to bolster the trust and verification processes further, ensuring product authenticity and compliance throughout the decentralized network.

Edited by Harshajit Sarmah