It's common for people to have a reaction to a cosmetic or lotion at some point in their lives. For those with sensitive skin, identifying the exact ingredient that causes irritation can be challenging. Even after carefully checking labels, it's often impossible to know for sure what's causing the problem.
The beauty industry has faced criticism for years due to a lack of transparency, especially in its supply chain. Unlike food and medicines, which are regulated by agencies like the FDA, cosmetics are not subject to the same level of scrutiny. This means that the products we apply to our skin are often not tested for safety before being sold.
Reports from the UK show that the MHRA receives around 300 to 400 complaints annually about adverse reactions to beauty products. These products are sold without any prior review, and no safety testing is required for their ingredients. It's a concerning situation for consumers who trust these products to be safe.
On average, an adult woman in the UK uses up to 12 personal care products daily, exposing her body to over 168 different ingredients. Men use six products on average, with up to 90 chemical ingredients. Ensuring product safety is essential, but how can companies guarantee this? The question remains unanswered.
Blockchain Could Be The Solution To Major Issues In The Cosmetics Industry
The cosmetic supply chain is not well-regulated, and there’s a big gap between when a product is made and when it reaches the consumer. In the UK, issues like product diversion and counterfeiting are major concerns in the beauty sector.
Many companies use contract manufacturers instead of in-house production. Products then go through packaging providers and distributors, where problems often begin. Distributors may sell to unapproved sub-distributors, making it hard to track where the product ends up. Once diverted, it’s difficult to trace.
Is the price being inflated? Is counterfeit replacing real products? When you order a Chanel eyeshadow on Amazon, how do you know if it's genuine or just going to cause an eye infection?
How Can Blockchain Improve Supply Chain Management?
Cosmetic boxes often have visible and hidden identifiers to help companies trace products back to their source. If a company discovers a counterfeit or a product being sold at a higher price, they can use these identifiers to find the problematic link.
Companies like Chronicled offer end-to-end tracking solutions, making the supply chain more transparent from start to finish.
But the issues aren't just downstream; they also exist upstream, where ingredients are sourced. A single product can contain 50–100 ingredients from all over the world, yet there's little transparency about their origins.
For example, mica is used in many cosmetics for its shimmer. However, much of the mica comes from illegal mines in India, where child labor is rampant. Reports suggest that up to 90% of mica mines in Jharkhand and Bihar are illegal, with thousands of children working in dangerous conditions.
How Can Blockchain Ensure Transparency?
While solving child labor is complex, blockchain can provide a decentralized system for verifying the origin of materials. Companies like Betterkinds are working to ensure ethical sourcing. Even if only 10% of mica mines are legal, blockchain can help track them through the supply chain.
Why Are Big Corporations Failing To Meet Standards?
Despite claims of control, large corporations often struggle to manage their suppliers effectively. Many rely on outdated systems like paper invoices and manual processes, which contribute to inefficiencies and opacity.
Solution:
Technologies like AI and machine learning are slowly transforming the cosmetics industry. As companies become more digital, they will improve convenience for consumers and better meet their expectations.
Investing in robust systems that cover all aspects of the supply chain is crucial. Integrating outdated and inefficient systems is necessary for progress. Blockchain offers a reliable solution to trace products and share information across the supply chain.
As the industry evolves, embracing technology is essential. It's time for the cosmetics sector to adopt innovations that bring transparency, safety, and trust to both consumers and brands. With the right approach, the future of beauty could be brighter and more responsible than ever before.
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