Blockchain in Retail | Learn how Blockchain can transform the retail industry

Blockchain continues to grow, even among small businesses. It has become more popular than ever, and several companies are adopting it for various purposes. Currently, the retail sector makes use of this technology to address challenges such as inventory management, counterfeit products, partner channel evaluation, etc. In fact, leading organizations like Target, Walmart, IKEA, and Home Depot are already using blockchain in retail operations.

Blockchain in the retail sector

blockchain consulting services provide more transparency and automates processes, which helps reduce operating costs. In fact, this technology has the potential to transform the retail sector in many capacities, through supply chain management, inventory management system and reduction of overhead expenses. In actuality, the possibilities are endless, and Fervimax can assist you in staying one step ahead of your rivals by skillfully developing and deploying this technology. Let us now look at some of the main benefits of this technology and how it can be used in the retail sector.

Minimize the circulation of counterfeit products

Counterfeit products exist due to the huge movement and purchasing that takes place in this industry. As a result, most in the retail sector find it difficult to track products to confirm their authenticity. This problem can be overcome by using unique tracking codes or tags that can be scanned and recorded. This can be connected to Blockchain, ensuring correct and unhindered records.

Every year, the retail industry loses billions of dollars due to the circulation of counterfeit products. As a result, sellers lose revenue while consumers do not get enough value from their purchases. Ultimately, there is distrust between the Buyer and the Seller, which can gradually develop into consumer demands. As a result, businesses like Starbucks have put in place initiatives like the "Bean to Cup" program, which lets users track their purchases. These initiatives are implemented using blockchain consulting services, which proves the authenticity of the products.

Since retailers dealing in luxury goods are the most affected by imitation items, IBM recently developed a technology called TrustChain for companies involved in the sale of jewelry and gemstones. Similar to how your industry might require this kind of solution, Fervimax and its full staff of Blockchain specialists are prepared to assist in putting it into practice in your company. 

Competitive advantage

Currently, the biggest challenge facing the retail sector is the tough competition coming from online marketplaces like Amazon and eBay. Therefore, companies like Walmart have begun to unleash the potential of Blockchain to address this problem effectively. Walmart is reportedly likely to use this technology to assess the value of its potential business partners. Additionally, Walmart is also using it to build strategic alliances with traditional media and is constantly expanding its horizons. Similarly, other industries could harness the potential of e-commerce, through the use and implementation of blockchain technology.

Inventory Trackin

Retail giants must keep track of perishable and non-perishable products, while complying with current regulations. For example, the United States Department of Agriculture has some very specific guidelines that must be followed when storing meats and juices for commercial purposes. Similarly, adhering to additional health and safety regulations can be a nightmare in the absence of a strong Blockchain-enabled infrastructure. Using this technology helps you comply with applicable regulations, minimize losses, and plan the right sales strategy to move stocked products to lower shelves.

Find out where the Product came from

Currently, the market is dominated by Millennials, a generation that demands personalized attention from the seller or service provider in real time. Companies can provide this type of transparency by making use of Blockchain. This is mainly because many companies source products from suppliers or from distant locations.

As products travel long distances or change hands, there is a chance that counterfeit products may slip in between them. Blockchain can solve this problem by creating a decentralized record of the product, as it moves from Manufacturer to Customer.

Design effective loyalty programs

The retail industry thrives on customer loyalty, which is tested by the giants of the e-commerce marketplaces. That forces retail companies to design and implement effective customer loyalty programs. Transparency and scalability are the two main challenges retailers face when it comes to designing an effective loyalty program. Blockchain in retail helps overcome these challenges by allowing businesses to reward customers through the traditional points-based system or through cryptocurrency.

Reduced overhead

The best part about implementing blockchain technology is the fact that you can reduce the resources to keep track of things and rely on a decentralized system. Additionally, it eliminates the possibility of human error and mismanagement, which can lead to lost revenue.

Companies that use blockchain technology to manage their supply chains, inventories, customer loyalty programs, etc. include Walmart, Starbucks, and Target.Although these are big names in retail, small and medium-sized businesses can also benefit from Blockchain. If you are interested in implementing this technology but don't know where to start, contact us and we will help you.