Innovative e-Retail Platform Based on Blockchain Technology to Enhance the Circular and Sustainable Economy Model in the Fashion Industry
In an era where technology and sustainable development are crucial to addressing the business and societal challenges of the post-COVID period, the fashion industry stands on the brink of a rapid digital transformation. The REFASHION project is pivotal to these sectoral efforts by introducing an innovative modification to the traditional model of online fashion product sales. This initiative is grounded in the principles of the circular economy and product life extension, as demonstrated through the practices of the emerging business model of recommerce.
The REFASHION project harnesses blockchain technology to establish a secure, transparent, and efficient platform for extending the life of fashion products. The online trading platform developed by the project enables users to sell their second-hand fashion items directly to others or donate them in exchange for ecosystem tokens issued by the platform administrators. These tokens can be used for discounts on future purchases or redeemed for services and products in a network of partner businesses, thus reinforcing a community-based circular economy. By doing so, the REFASHION project not only generates environmental benefits by extending the lifespan of fashion items but also promotes a new economic model that fosters sustainable consumer behavior. Furthermore, through blockchain technology, the platform ensures authenticity, traceability, and security of transactions, addressing the prevalent issues of trust and quality that challenge existing and particularly immature resale markets. Finally, the project will investigate the technical and economic challenges of developing and scaling such a platform, its potential impact on reducing fashion waste, and enhancing consumer engagement in the project ecosystem through targeted incentive mechanisms and changes in environmental behavior.