Operational Strategy Analysis of Fashion Brands to Develop Digital Assets Under the Sustainability Goals

This paper analyzes the strategic decisions of fashion brands regarding the development of digital assets based on blockchain technology, with a focus on achieving both sustainability and profitability goals. We first consider foundational factors such as the fashion value of products, their life cy...

Full description

Saved in:
Bibliographic Details
Main Authors: Yazhou Liu, Wenjie Wang, Junhua Liu
Format: Article
Language:English
Published: MDPI AG 2024-10-01
Series:Systems
Subjects:
Online Access:https://www.mdpi.com/2079-8954/12/11/449
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1850227721387376640
author Yazhou Liu
Wenjie Wang
Junhua Liu
author_facet Yazhou Liu
Wenjie Wang
Junhua Liu
author_sort Yazhou Liu
collection DOAJ
description This paper analyzes the strategic decisions of fashion brands regarding the development of digital assets based on blockchain technology, with a focus on achieving both sustainability and profitability goals. We first consider foundational factors such as the fashion value of products, their life cycle, and environmental taxes to construct a traditional fashion system involving the government, fashion brands, and consumers. Subsequently, we introduce a blockchain model that incorporates the added value of digital assets, the cost of technology, and the proportion of fashion consumers. Both models—traditional and digital—are solved mathematically, and numerical experiments are conducted to compare and analyze the impact of developing digital assets by fashion brands. The findings suggest that leveraging digital assets to enhance the fashion value of products can increase the profitability of fashion brands while also reducing environmental pollution caused by leftover inventory. Additionally, the development of digital assets may extend the life cycle of a product, although this does not always lead to improved environmental performance, highlighting a trade-off between the two objectives. Ultimately, the development of digital assets by fashion brands can result in a win-win for both profit and environmental performance, but this outcome is contingent on the cost of blockchain technology meeting specific conditions.
format Article
id doaj-art-0d8a1b86c0604a18a70bb11ed71816ad
institution OA Journals
issn 2079-8954
language English
publishDate 2024-10-01
publisher MDPI AG
record_format Article
series Systems
spelling doaj-art-0d8a1b86c0604a18a70bb11ed71816ad2025-08-20T02:04:44ZengMDPI AGSystems2079-89542024-10-01121144910.3390/systems12110449Operational Strategy Analysis of Fashion Brands to Develop Digital Assets Under the Sustainability GoalsYazhou Liu0Wenjie Wang1Junhua Liu2Glorious Sun School of Business and Management, Donghua University, Shanghai 200051, ChinaGlorious Sun School of Business and Management, Donghua University, Shanghai 200051, ChinaInner Mongolia Modern Logistics and Supply Chain Management Research Center, Hohhot 010051, ChinaThis paper analyzes the strategic decisions of fashion brands regarding the development of digital assets based on blockchain technology, with a focus on achieving both sustainability and profitability goals. We first consider foundational factors such as the fashion value of products, their life cycle, and environmental taxes to construct a traditional fashion system involving the government, fashion brands, and consumers. Subsequently, we introduce a blockchain model that incorporates the added value of digital assets, the cost of technology, and the proportion of fashion consumers. Both models—traditional and digital—are solved mathematically, and numerical experiments are conducted to compare and analyze the impact of developing digital assets by fashion brands. The findings suggest that leveraging digital assets to enhance the fashion value of products can increase the profitability of fashion brands while also reducing environmental pollution caused by leftover inventory. Additionally, the development of digital assets may extend the life cycle of a product, although this does not always lead to improved environmental performance, highlighting a trade-off between the two objectives. Ultimately, the development of digital assets by fashion brands can result in a win-win for both profit and environmental performance, but this outcome is contingent on the cost of blockchain technology meeting specific conditions.https://www.mdpi.com/2079-8954/12/11/449fashion valuedigital assetsblockchain technologysustainabilityproduct life cycle
spellingShingle Yazhou Liu
Wenjie Wang
Junhua Liu
Operational Strategy Analysis of Fashion Brands to Develop Digital Assets Under the Sustainability Goals
Systems
fashion value
digital assets
blockchain technology
sustainability
product life cycle
title Operational Strategy Analysis of Fashion Brands to Develop Digital Assets Under the Sustainability Goals
title_full Operational Strategy Analysis of Fashion Brands to Develop Digital Assets Under the Sustainability Goals
title_fullStr Operational Strategy Analysis of Fashion Brands to Develop Digital Assets Under the Sustainability Goals
title_full_unstemmed Operational Strategy Analysis of Fashion Brands to Develop Digital Assets Under the Sustainability Goals
title_short Operational Strategy Analysis of Fashion Brands to Develop Digital Assets Under the Sustainability Goals
title_sort operational strategy analysis of fashion brands to develop digital assets under the sustainability goals
topic fashion value
digital assets
blockchain technology
sustainability
product life cycle
url https://www.mdpi.com/2079-8954/12/11/449
work_keys_str_mv AT yazhouliu operationalstrategyanalysisoffashionbrandstodevelopdigitalassetsunderthesustainabilitygoals
AT wenjiewang operationalstrategyanalysisoffashionbrandstodevelopdigitalassetsunderthesustainabilitygoals
AT junhualiu operationalstrategyanalysisoffashionbrandstodevelopdigitalassetsunderthesustainabilitygoals