Tech Tactics is Sourcing Journal’s series with brands and technology companies to discuss their latest innovations.
Lululemon is stepping up its defense against the growing counterfeit trade.
According to the Organization for Economic Co-operation and Development (OECD), fake goods account for roughly 2.3 percent of global imports—an illicit market valued at $467 billion in 2021, and likely higher today.
Related Stories
To tackle the problem head-on, the Canadian athleisure brand announced Thursday its collaboration with VeChain, a blockchain-powered network, to authenticate every product sold in the Chinese mainland market.
The collaboration will leverage VeChain’s ToolChain platform to attach unique QR codes or near-field communication (NFC) tags—each linked to an immutable digital record—to some jacket, hoodie and pair of leggings produced.
ToolChain enables transparent product tracking by storing each item’s full “digital legacy,” creating value for consumers, brands and supply-chain partners. For shoppers, that means instant, verifiable proof of authenticity. For Lululemon, it’s a critical move to safeguard its brand equity, reduce resale scams and push back against the flood of fakes fueling global “dupe culture.”
“Fashion brands in all their forms are motivated to reduce fraud, ensure authentic products are sold to maximize revenue and to create additional engagement and data-gathering opportunities in the secondary market,” Sunny Lu, VeChain’s CEO, told Sourcing Journal. “We’ve worked with multiple fashion brands to deliver blockchain and IoT solutions for authentication. Lululemon’s adoption signals a maturing industry, where the value proposition is becoming clearer for legacy enterprises.”
Lu said the technology is already being used across fashion categories to enhance post-sale engagement, capture product insights and strengthen resale ecosystems. He added that blockchain traceability also supports sustainability storytelling, allowing companies to merge supply chain and sourcing data to verify product credentials.
“With the introduction of product passports in the European Union, the ability to track and trace product provenance has become even more important,” Lu said. “We expect the market for these products to grow considerably in the coming years.”
