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Sep 13, 2018

The blockchain applied in an industrial environment: Retail

Blockchain allows, beyond cryptocurrencies, to reach much wider fields of intervention concerning certification and traceability business problems. Technology thus makes it possible to strengthen trust in complex networks where actors with diverging interests exchange value. The challenge is particularly accurate for the luxury sector, which is seeking to strengthen the guarantee of the authenticity of its products and to protect itself against counterfeiting of its products.

Now that you know the possibilities offered in terms of supply chain (tracking the transfer of responsibility and inventory management), discover how retailers can use blockchain to facilitate their daily tasks.

A recent MarketsAndMarkets study estimates that the blockchain market for retail could grow from $2.3 billion in 2018 to $23.3 billion by 2023. With such an increase, retail trade is the sector with the strongest growth in blockchain infusion.

A frictionless payment and in-store conversion solution

Blockchain makes it possible to carry out transactions efficiently and at a lower cost for the retailer. Thus, if the fees for a payment by credit card visa is between 1.43% and 2.4% and by American Express between 2.5% and 3.5%, the fees for an Ethereum transaction are between 0.2$ according to Value Penguin 2018.

Moxyone offers a payment system that directly converts customers' cryptocurrencies into cash when they checkout. In the same way, Dether is able to convert Ethereum tokens into cash.

Until now, payment by cryptocurrencies has been mainly the preserve of pure e-commerce players
such as, which was the first retailer to accept bitcoin transactions as early as 2014, or Showroomprivé.com.

The use of cryptomonnaies by physical retailers, such as brick & mortar, was rather the result of isolated acts according to the initiative of the Subway of Buenos Aires or KFC Canada.

The "bitcoin accepted" button on the store front is gaining ground and attracting more and more retailers

In 2017, the Swiss watchmaker Franc Vila began to accept payment in stores using some of the most popular cryptomones: bitcoin, Ethereum, dash, monero, Zcash and Litecoin.

When visiting the store, the customer connects to his electronic wallet and scans with his mobile phone or tablet a single-use QR code affixed to the watch. Both the customer and the seller are notified of the payment confirmation, whose waiting time corresponds to the recording of the information on a block.

In January 2018, Japan's leading consumer electronics company, Yamada Denki, formed a partnership with Bitflyer, Japan's largest bitcoin exchange, to equip two of its sales outlets.

The ultimate personnalization of customer relations thanks to time-stamped blockchain technology

At a time when customers, especially the youngest ones, are very volatile and eager for constantly renewed experiences, the blockchain makes it possible to solve the "seamless" knowledge of the customer in the Retail environment.

The distributed register offered by blockchain makes it possible to automatically record all transactions carried out by the customer. It therefore allows you to know precisely the customer's "purchasing history" in order to offer products that are better targeted according to his personality and consumption habits.

Unlike a conventional CRM system, no software package is required to implement a blockchain solution. This saves you time and flexibility.

The blockchain can act effectively in favour of the excellence of your customer service and in particular your click & collect service. With it, customer feedback within your stores is made easier thanks to the tracking of "memes" and a set of digital trackers.

Much like crossroads tomatoes, customers are better informed about the location of the product they have ordered or the waiting time before any reception in the store.

Much like crossroads tomatoes, customers are better informed about the location of the product they have ordered or the waiting time before any reception in the store.

Improved efficiency of loyalty programs

Blockchain and its tokens can help strengthen your loyalty program.

However Accenture, reveals that 23% of consumers have a negative opinion or even indifference towards loyalty programs, while 76% have an inactive loyalty account.

Not to mention that American customers alone are enrolled in an average of 15 loyalty programs, which makes monitoring very difficult.

Because it offers real-time liquidity, blockchain can facilitate loyalty point management, tracking and reward point redemption between consumers and retailers.

Thus, any error in the counting of loyalty points or fraud known as "point theft" is systematically avoided.

The Japanese group Rakuten, owner of the marketplace Prime Minister, which had introduced bitcoin payment as early as 2015, is currently working on developing a loyalty programme with its RakutenCoin entity.

The SLP loyalty program management platform allows the end customer, through a mobile application, to facilitate the collection of loyalty points, track their collection and exchange them if necessary.

Increased transparency on product traceability for customers and professionals

Blockchain can help to restore trust between retailers and consumers. The technology is particularly relevant at a time when consumers are increasingly demanding production methods and a responsible supply of raw materials.

Blockchain register is able to trace the entire product journey, from its sampling on site to the shelving of the final product.

For a pastry chef, the data contained in blockchain makes it possible to know who made the cake, when and where, but also what ingredients were used.

Retail players such as Carrefour, supported by Ownest in the implementation of digital tracking of its rolls, have understood the benefits of blockchain on perishable products such as tomatoes.

The blockchain makes it possible to ensure the freshness of food products and to identify with certainty products that have passed their expiry date, thus helping to reassure the end customer.

Authenticity is also achieved through smart-contracts.

These code bits on the blockchain allow logical actions with identification and execution functions on the blockchain.

These smart-contracts allow you to exchange money, property rights or any other valuable object with a transparent relationship that protects you from any risk of litigation, while saving on the services of an intermediary.

Confronted on a daily basis with the challenges and problems of supply chain and retail players, Ownest, through its blockchain technology, allows you to restore trust with your carriers and end customers in stores in order to guarantee them optimal customer service and better manage the follow-up of transfers of responsibility for your goods.

Through its mobile blockchain application coupled with its SaaS solution specialized in traceability, Ownest helps retailers and distributors to limit the loss, theft and damage caused during the delivery of their goods to stores. For example, within the Carrefour group, the digital blockchain tracker makes it possible to track transfers of responsibility and to know at any time who has taken charge of the goods' supports.

Do you want to offer your customers the retail of the future?

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