The question of transparency is currently where sustainability was just a few years ago: Companies - not only those in the textile and apparel industry - are not sure what added value it brings them and their supply chains and doubt that it is a necessity now or could be soon. They also have scruples about revealing important supply sources. German fashion Blockchain start-up Retraced, which won the German Sustainability Award just last year, wants to do away with the prejudices and false assumptions and has thus launched a blog to shed light on the topic of transparency.
“We are excited to announce our new blog series ‘Why is transparency important in fashion?’ where we discuss the relevance and impact of supply chain transparency on the fashion industry. In this series, we will look at the topic from various business perspectives,” said Retraced in an announcement on Tuesday afternoon.
The first part, “The Power of Transparency - The Marketing Perspective,” is about how to use transparency to create a viable competitive advantage. “If consumers feel that a brand’s standards are different from their own, it will result in uncertainty at best and might even turn into mistrust. Both feelings will negatively influence the purchasing decision, despite the brand’s efforts to be more sustainable following their own standards. Transparency is the solution to this issue if implemented correctly. Transparency does not only allow brands to communicate how they define sustainability but also how they act accordingly,” advises the article.
This is also true for the current coronavirus situation that has companies worldwide in its clutches. Transparency is very important for retailers - online or with brick and mortar stores - when it comes to communicating sourcing bottlenecks. They should be communicated so that customers can adjust to the situation and plan accordingly. Brands and retailers should also communicate openly how they are dealing with the Covid situation. This does not only meet their obligation to inform customers but also lets them stay in touch. A win-win situation.
The Retraced blog is freely accessible through the company’s website - retraced.co/en/news. The second part, which is coming soon, will shed light on “The Supply Chain Perspective”.