Blockchain in retail has become more popular than ever before, and several companies are now adopting it for various purposes. At present, the retail sector makes use of this technology to confront challenges such as inventory management, counterfeit products, partner channel assessment, and several others. In fact, leading organizations such as Target, Walmart, IKEA, Home Depot and several others are already making use of blockchain in retail operations.
Blockchain in the Retail Sector
Blockchain technology is a distributed ledger that creates genuine records, which cannot be tampered with. As a result, it accords more transparency and automates several processes, which helps reduce operational costs. As a matter of fact, this technology has the potential to transform the retail sector in many capacities — through supply chain management, inventory management system, and reduction of overheads. In fact, the possibilities are limitless and by designing and implementing this technology effectively, Fervimax can help you stay ahead of your competitors. Let us now look at some of the core benefits of this technology and how it can be used in the retail sector.
Minimize Counterfeit Product Circulation
Counterfeit goods exist due to the enormous movement and changing of hands that takes place in this industry. As a result, most retailers find it difficult to keep track of goods in order to confirm its authenticity. This problem can be overcome by making use of unique tracking codes or labels that can be scanned and recorded. This can then be connected to the Blockchain, which ensures genuine and unhampered records.
Every year, the retail industry loses billions of dollars due to the circulation of counterfeit goods. As a result, sellers lose out on revenues while the consumers do not derive enough value from their purchases. Ultimately, there is distrust between the Buyer and the Seller, which may gradually turn into ugly consumer lawsuits. Therefore, companies like Starbucks have implemented programs such as the ‘Bean to Cup’ initiative, which lets customers track their products. Such initiatives are implemented using Blockchain technology, which proves the authenticity of the Retailer’s products.
Since retailers dealing in luxury goods are worst hit by imitation goods, IBM recently developed a technology called TrustChain for companies involved in selling jewelry and precious stones. Likewise, your industry may need this sort of a solution, and if you do, Fervimax and its entire team of Blockchain Experts are ready to assist you.
Competitive Edge
At present, the biggest challenge faced by the retail sector is the stiff competition that comes from popular online marketplaces like Amazon and eBay. Therefore, companies such as Walmart have started to unleash the potential of the Blockchain in retail, to effectively deal with this issue. According to reports, Walmart is likely to use this technology to evaluate the worth of its potential business partners such as social media influencers. Alongside this, Walmart is also using it to build strategic partnerships with traditional media houses and is steadily expanding its horizons. Likewise, other industries could tap into the potential of eCommerce, through the use and implementation of the blockchain technology.
Track Inventories
Retail giants need to keep track of both perishable and non-perishable goods, while complying with applicable regulations. For instance, the United States Department of Agriculture has some very specific guidelines that need to be followed while storing meats and juices for commercial purposes. Likewise, there are other health safety guidelines that need to be followed and doing that without a robust Blockchain-enabled infrastructure can be a nightmare. So, if you have been dealing with this sort of an issue, then we can help you implement blockchain to keep track of your inventories. Doing this helps you comply with applicable regulations, minimize wastage, and plan the right sales strategy to move the goods that have a low shelf file.
Know where the Product came from
Currently, the market is dominated by Millennials, a generation that demands evidence of every claim made by the seller or the service provider. So, if you sell Cuban Cigar or Moroccan Spices, then your customers want you to prove it. Businesses can provide this sort of transparency by making use of Blockchain in the retail business. That’s mainly because quite a few companies source products through Suppliers, or from faraway places. This involves exchange and movement of goods.
As the goods travel long distances or change hands, there is every possibility of counterfeit goods sneaking in. Blockchain can resolve this problem by creating a decentralized record of the product, as it moves from the Manufacturer to the Customer.
Design Effective Loyalty Programs
The Retail industry thrives on customer loyalty, which is put to test by the highly competitive eCommerce marketplaces. That makes it imperative for retail businesses to design and implement effective customer loyalty programs. However, transparency and scalability are the two main challenges faced by Retailers, when it comes to designing an effective loyalty program. Blockchain in retail helps overcome these challenges by enabling companies to reward customers through the traditional point-based system or through cryptocurrencies. If you wish to run loyalty programs on Blockchain, we can help you implement it in the best way possible and increase customer loyalty and customer retention.
Reduced Overheads
The best part about deploying blockchain technology is the fact that you can cut back on resources to keep track of things and rely on a decentralized system. Also, it eliminates the possibility of human error and mismanagement, which can lead to loss of revenues.
For quite some time, companies like Walmart, Starbucks, and Target have been using blockchain technology to manage their supply chains, inventories, customer loyalty programs and more. Although these are big names in the Retail sector, small and mid-sized companies can also benefit from Blockchain in the retail segment. If you are interested in implementing this technology but do not know where to start, you can Contact Us, and we will provide you with the necessary assistance.