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Blockchain, IoT and Resale 3

Blockchain, IoT and Resale 3

Can technology scale the resale market?

A scaling of fashion resale requires traceability of individual garments and technology for locating and disseminating one-offs on the secondary market, as well as a deeper understanding of value creation and market mechanisms. This project aims at aligning and validating state-of-art of blockchain and IoT technology, as well as investigating user behaviour and economic flows on the current resale market.

The effective use of blockchain, IoT and integration into existing systems requires significant technological knowledge, making the transition into using blockchain hard for small and medium sized enterprises.

Furthermore, resale is contradicting current linear trend- and seasonal logics of the fashion sector which is one of the primary barriers for scaling of resale and take-back schemes both in terms of mindset and logistics.

 

By being proactive Danish companies can lead the development of solutions that incorporate Danish and European preferences into the standardization process rather than being subjected to the systems of Chinese or American companies or the global Internet giants such as Amazon or Alibaba. DK currently has a stronghold of resale in EU as 9% of DK clothing purchases are resale against 5% in other EU countries. The resale market is immature globally but is estimated to take over fast fashion by 2030. DK could be lead in this through clever implementation of IoT and blockchain technology combined with deep consumer- and market insights. Digital prototypes created with blockchain and IoT technology can decouple resources in the design phase which can save 10-20% textile waste during production. Tracking devices can help inform valid LCA measurements and design practices for longevity and can thereby support legislation and policy making for circularity of the fashion market, currently the most linear sector in the world due to the prevalent trends- and seasonal mindset. Scaling of resale can push for longer use phases of clothing which is vital to ensure climate goals.

Resale is estimated to generate $64B by 2024 and is the only viable way of reducing waste of clothing, pushing for better quality garments, and reducing poor quality textile waste.

 

Participating partners: Alexandre Instituttet, Copenhagen Business School, Lifestyle & Design Cluster, Ganni, Continued Fashion, Create2Stay, By Green Cotton, Soulland, ReShopper, Textile Pioneers, Wehlers and Son of a Tailor

 

 

How can technology boost resale?

By 2025 80% of the revenue stream in fashion is from resale – this is the vision of the TRACE project. But how do we get there?

Meet these three AI personas – they are the result of answers from 16 participants in the TRACE project. 

 

 

Meet Javier Cortés

A 70-year-old pioneer in digital fashion platforms, who has dedicated his career to making fashion accessible, collaborative, and sustainable. As a visionary Digital Fashion Platform Developer, Javier reflects on how technology has transformed fashion into a shared resource rather than something to own. Looking back from 2050, he shares his hopes for a future where circular fashion thrives, and every garment can touch countless lives.

Meet Priya Khanna

A 66-year-old Fashion Educator and Workshop Facilitator dedicated to transforming how we connect with our clothing.  Known for her colorful style and passion for sustainability, Priya has spent her career teaching people to repair, upcycle, and personalize their wardrobes. Reflecting from the year 2050, Priya shares her journey of empowering individuals to move from fast-fashion consumers to proud creators and caretakers of their garments. Her hope? That future generations continue this tradition of valuing, nurturing, and cherishing fashion.

Meet Anika Jansson

A 68-year-old Sustainability Manager and a true pioneer in circular fashion. With decades of experience, Anika has dedicated her career to eliminating waste by creating systems that ensure every garment is tracked, repurposed, or recycled. Looking back from the year 2050, Anika shares her vision of a world where landfills are relics and fashion is designed for endless cycles. Her hope? That the next generation finds beauty in sustainability and continues the journey toward a fully circular future. 

Listen to the new Trace podcast series

We are excited to present our podcast series about the resale market and the latest technologies in the fashion industry. You will meet experts from the TRACE project, who, together with leading companies like Samsøe Samsøe, NN07, Bestseller, Soulland, Continued, and By Green Cotton, explore how resale can extend the lifecycle of garments and enhance sustainability. They address three issues 

Podcast 01: What is resale, and what challenges and opportunities exist?  Hvad er gensalg - udfordringer og modsigelser i bæredygtig mode 

Podcast 02: How to implement resale in practice?  Hvordan Praktiseres Gensalg? Strategier og Udfordringer 

TRACE 03: The role of technology in the resale market and the importance of data.  Teknologiens rolle i modebranchen og gensalgsmarkedet 

The podcast is in Danish and is funded by TRACE, supported by EU and Innovation Fund Denmark and developed in collaboration with Lifestyle & Design Cluster., Copenhagen Business School, the Royal Danish Academy, and the Alexandra Institute.  

 

 

Current blockchain and IoT solutions for the fashion and reseller market.

Screening of current blockchain and IoT solutions. Showcasing the overview of current solutions and shared through the educational tracks

 

 

Enhancing brand transparency through blockchain and internet of things.

Many products falsely claiming to be sustainable, two digital technologies, blockchain and Internet of Things (IoT), emerge as promising enablers to enhance supply chain transparency and share detailed information with customers. Author: Lotta Moll & Caspar Müller Lütke 

How digital twin technology is fighting counterfeit Products.

Brands can preemptively adopt digital twin technology to protect intellectual property and promote sustainability and foster data driven decision making. Author: Felix Prieto Gesner 

Digital Twins for Circularity.

Because it supports circular models by enabling virtual prototyping, tracking, and reducing resource use. Education Case Digital Twins For Circularity  Author: Louisa Brügmann & Caroline Bieser and find their highligths here

See presentation 

Empowering small-to-medium sized businesses with blockchain.

A guide to sustainable innovation.  Author Author: Louise Ottesen 

 

 

Mapping the industry standard of the global supply chain.

Identification and description of generic events in a global supply chain across different fashion companies.

 

 

WP3: Data analysis of transactions and interactions on selected resale platforms.

(CBS/AI) Trends in the reseller market. Why does the market react as it does? By utilizing data from current reseller platforms, it will be possible examine what mechanism powers this market. Benchmark data from the reseller market with data from the production of fashion. What data is needed in the first place, from upstream market to empower the downstream market.

 

 

Data analysis of transactions and interactions on selected resale platforms.

Trends in the reseller market. Why does the market react as it does? By utilizing data from current reseller platforms, it will be possible examine what mechanism powers this market. Benchmark data from the reseller market with data from the production of fashion. What data is needed in the first place, from upstream market to empower the downstream market.

 

 

 

 

 

 

Qualitative studies of value creation on the resale market

Study of brand performance on the resale market with selected brands, where selected styles are followed to understand value creation (both economic and emotional). Further analysis of previous studies, anchored in the participating brands and resale platforms. Trends, knowledge, and findings are shared.

 

 

International paper from the project ‘Blockchain, IoT and Resale’

Exploring Longevity in the Fashion Resale Market

We are excited to introduce this paper from the project ‘Blockchain, IoT and Resale’ 

The paper was first presented at the PLATE conference in Helsinki June 2023 and has now been published in a special issue of the esteemed International Journal of Sustainable Fashion and Textiles,  edited by Kirsi Niinimaki Headed by the title: “Does Resale Extend the Use Phase of Garments? Exploring Longevity in the Fashion Resale Market”.

PhD. Mette Dalgaard Nielsen and Associate Professor, PhD. Else Skjold from the Royal Danish Academy have asked the question whether resale extends the lifetime of garments or not.


Through a ‘follow-the-garment’ netnographic approach that locates in-and-out flow of reseller wardrobes and resale platforms, the study analyses selected resale mechanisms that hinder or promote longer lifetimes of garments. The conclusion shows that resale does not in itself extend garment lifetime, but that it has huge potentials for doing so given the right circumstances.
Several Danish fashion brands and resale platforms are involved in the study, amongst these Baum und Pferdgarten and Ganni A/S.

Project Leader

Jan Damsgaard