How Blockchain can Deliver a Better Retail Experience

How Blockchain can Deliver a Better Retail Experience

The blockchain in retail market size is expected to grow from US $80.0 million in 2018 to US $2,339.5 million by 2023, at a Compound Annual Growth Rate (CAGR) of 96.4% during the forecast period.
The blockchain in retail market is driven by the growing need for increased efficiency and speed in retail and supply chain transactions and focus on preventing fraudulent activities in the retail industry.

Value Drivers for Blockchain in Retail

  1. Provenance/Authenticity
    Blockchain’s initial impact focuses on sanctioning retailers to produce a lot of reliable data to customers, who notably for a few product classes – more and more base their purchase choices on product content, origins, purity, and authenticity. Currently, counterfeit or contaminated product actual an enormous toll within the type of lost sales and whole injury, caused partially by the problem customers have in differentiating fakes from the real thing.
    Recently, retailers have recognized the gravity of this issue. In fact, Amazon has begun taking counterfeit resellers to court. Using blockchain technology, retailers will offer customers with indisputable proof of the birthplace and credibility of their product at each step within the offer chain. One sneaker manufacturer, as an example, is using blockchain and 3D-printed smart tags, scannable by a smartphone, to prove product authenticity.
  2. More Secure Transactions, Faster Settlement
    A second promising application lies in transaction settlements. Today, each player within the retail price chain pays a steep value to make sure the validity of the exchange of products, cash, and knowledge. They must compensate third parties for his or her services and stay up for every to complete its work before receiving payment or a dealings confirmation. Blockchain-based secure transactions will cut back the requirement for such third parties. By guaranteeing business transactions, substantially reducing fraud and increasing the efficiency of business partnerships, blockchain would free significant resources that can be redirected to more innovative and valuable ways of working across the value chain.
  3. Supply Chain Visibility
    Blockchain can also dramatically improve visibility into advanced retail offer chains, like data on product standing and placement. Retailers and distributors these days should reconcile data from multiple systems and use this knowledge to optimize inventory levels.
    In many provide chains, this lack of visibility causes over-ordering upstream, which ends up within the bullwhip effect: demand-supply variability that may inflate prices significantly for upstream provide chain partners. The visibility provided by the ever-present data obtainable on a blockchain will greatly cut back these prices.
    Blockchain-enabled user access management will guarantee proprietary data is protected by limiting permission to look at or modify knowledge to the suitable parties. The level of blockchain’s granular management through permissions is comparable to what’s provided by gift systems these days however at a way lower price.
  4. Networked Loyalty Programs
    Many firms area unit broadening their shopper loyalty programs to hide multiple brands. For instance, airlines provide passengers a chance to earn further points for rental an automotive from the most well-liked venders, or shoppers at a grocery chain get discounts on gasoline at affiliated stations.
    The noncurrent technology that tracks loyalty points imposes high prices and delays on collaborating merchants and customers. Legacy mainframes will take days to method transactions, forcing customers to attend for points to post to their account. The use of blockchain will create following these points quicker, cheaper, safer and far a lot visible to reach the house owners of the points and therefore the firms’ provision to them.

Conclusion:

The rapid pace of improvements in blockchain technology means that within one to two years blockchain could replace processes and provide a solution to many of the challenges faced by the industry today.
Retailers face another such inflection point with blockchain. Its ability to deliver inexpensive, secure sharing of information and value will drive game-changing benefits as discussed above. Early movers might gain the lion’s share of the advantage by not solely availing themselves of those advantages, however additionally mitigating blockchain limitations and characteristic key building blocks for additional value creation.

In case, you are looking to understand blockchain implications in your retail business sector in more detail, drop us an email on [email protected] or schedule a free consultation with our team of blockchain experts who can guide you through the blockchain implementation in a specific use case.