{"id":57972,"date":"2018-05-31T00:00:00","date_gmt":"2018-05-30T22:00:00","guid":{"rendered":"https:\/\/richardvanhooijdonk.com\/blog\/blockchain-really-is-the-revolution-retails-been-waiting-for\/"},"modified":"2021-07-22T08:29:39","modified_gmt":"2021-07-22T06:29:39","slug":"blockchain-really-is-the-revolution-retails-been-waiting-for","status":"publish","type":"post","link":"https:\/\/blog.richardvanhooijdonk.com\/en\/blockchain-really-is-the-revolution-retails-been-waiting-for\/","title":{"rendered":"Blockchain really is the revolution retail\u2019s been waiting for"},"content":{"rendered":"<ul class=\"bold-list\">\n<li>Transparency, transparency, transparency<\/li>\n<li>Blockchain is helping people make promises they can feel good about<\/li>\n<li>Counterfeit luxury items are a headache for major retailers<\/li>\n<li>Before you buy, check that QR code: blockchain can secure food, too!<\/li>\n<\/ul>\n<p>Customer expectations are changing, and a few things are becoming clear about their demands. First, trust is key. Globally, an astounding 71 per cent of mobile commerce shoppers will only download an app from a trusted brand, and numbers are even higher in markets like the UK. And when it comes to accepting a luxury sticker or organic label at face value, fewer and fewer customers are willing to trust without proof. Second, transparency is critical. Whether we\u2019re talking about ethics-minded consumers who want bloodless diamonds or cruelty-free meat, they want to buy products with a clear conscience &#8211; and they also want to know that they\u2019re not being cheated.<\/p>\n<p><iframe title=\"Blockchain really is the revolution retail\u2019s been waiting for\" width=\"800\" height=\"450\" src=\"https:\/\/www.youtube.com\/embed\/ZfB1OAGgsAk?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe><\/p>\n<p>For retailers, these shifts mean big changes &#8211; and blockchain really is at the heart of the brave new model for supply chain management. But don\u2019t fall for the mistaken impression that this is just hype. <a href=\"https:\/\/blog.richardvanhooijdonk.com\/en\/keynote\/the-future-of-retail\/\">Blockchain<\/a> is the revolution retail\u2019s been waiting for, strengthening consumer confidence by providing transparency and trust.<\/p>\n<h2>Transparency, transparency, transparency<\/h2>\n<p>Blockchain\u2019s a simple idea. It\u2019s a distributed ledger that uses thousands and thousands of privately owned computers to run its software, recording transactions in time-stamped, cryptographically secured \u2018blocks\u2019 that form an unhackable \u2018chain\u2019.<\/p>\n<p>Here\u2019s a metaphor for how it works. Imagine that you\u2019re a farmer and I\u2019m a warehouse that sells to Tesco. If we stood on a stage with a huge audience, and you handed me an apple, and I handed it to Tesco, everyone could witness that exchange. Even if a few people lied about it, it\u2019d be really easy to verify. Blockchain is just a digital record that works with much the same system at its heart. It\u2019s a vast, dispersed network that records, secures, and makes transactions visible.<\/p>\n<figure id=\"attachment_31208\" aria-describedby=\"caption-attachment-31208\" style=\"width: 801px\" class=\"wp-caption aligncenter\"><img fetchpriority=\"high\" decoding=\"async\" class=\"wp-image-31208 size-full\" src=\"https:\/\/blog.richardvanhooijdonk.com\/wp-content\/uploads\/sites\/4\/2019\/04\/Blockchain-1.jpg\" alt=\" A shopping cart filled with Bitcoin\" width=\"801\" height=\"534\"><figcaption id=\"caption-attachment-31208\" class=\"wp-caption-text\">Blockchain is just a digital record that works with much the same system at its heart.<\/figcaption><\/figure>\n<p>In an era in which consumers don\u2019t trust advertising or corporate statements, labelling fruit as \u2018organic\u2019, diamonds as \u2018bloodless\u2019, meat as \u2018cruelty-free\u2019, or a handbag as \u2018genuine\u2019 just doesn\u2019t mean anything. No one cares about what you say &#8211; they want proof. For retail, a secure, transparent ledger is precisely the evidence a thriving business wants to offer its customers, verifying that a product is what it claims to be.<\/p>\n<h2>Blockchain is helping people make promises they can feel good about<\/h2>\n<p>As Barbara Lewis and Arathy S. Nair report for <em>Reuters<\/em>, De Beers, the world&#8217;s leader in diamond production, depends on trust to earn new customers and keep established ones. A diamond may be forever, as the South African company\u2019s famous slogan promises, but fears that these stones are sourced from conflict-torn states in Africa are pretty persistent, too. To combat this crisis in confidence, they <a href=\"https:\/\/www.businessoffashion.com\/articles\/news-analysis\/de-beers-turns-to-blockchain-to-guarantee-diamond-purity\">write<\/a> that De Beers \u201chas led industry efforts to verify the authenticity of diamonds and ensure they are not from conflict zones where gems could be used to finance violence\u201d.<\/p>\n<p><iframe title=\"Walmart&#039;s food safety solution using IBM Food Trust built on the IBM Blockchain Platform\" width=\"800\" height=\"450\" src=\"https:\/\/www.youtube.com\/embed\/SV0KXBxSoio?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe><\/p>\n<p>But as any savvy retailer can tell you, merely telling a customer what they want to hear is meaningless. Increasingly, it\u2019s important to provide proof, to offer evidence, and to show as well as tell. To complement its existing tools, De Beers is introducing blockchain to track each individual stone, providing immutable, transparent proof of origin. With this new system in place, anyone &#8211; from customers to retailers &#8211; will be able to verify that each diamond is what it claims to be.<\/p>\n<h2>Counterfeit luxury items are a headache for major retailers<\/h2>\n<p>In Europe, trade in counterfeit goods is rampant. Europol, in partnership with the European Union Intellectual Property office, reports that counterfeiting and intellectual property theft are worth billions every year. Italy, Spain, and the UK are major targets, but everyone is affected. And for every consumer who wants a cheap knock-off, there\u2019s another one who\u2019s infuriated by paying good money for a fake item. Luxury retailers like Chanel, Louis Vuitton, and Nike would love to put an end to this illegal trade, but much as in the high-stakes world of diamonds, promises are worthless.<\/p>\n<figure id=\"attachment_31211\" aria-describedby=\"caption-attachment-31211\" style=\"width: 800px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"wp-image-31211 size-full\" src=\"https:\/\/blog.richardvanhooijdonk.com\/wp-content\/uploads\/sites\/4\/2019\/05\/Counterfeit-luxury-1.jpg\" alt=\"A pile of knock-off designer bags with a lady taking a photo of them with her smartphone\" width=\"800\" height=\"450\"><figcaption id=\"caption-attachment-31211\" class=\"wp-caption-text\">Europol, in partnership with the European Union Intellectual Property office, reports that counterfeiting and intellectual property theft are worth billions every year.<\/figcaption><\/figure>\n<p>Instead, the luxury retail industry is looking to blockchain. As Kati Chitrakorn <a href=\"https:\/\/www.businessoffashion.com\/articles\/fashion-tech\/5-technologies-transforming-retail\">explains<\/a> for <em>The Business of Fashion<\/em>, \u201cmicrochips utilising blockchain can tell a customer with complete certainty whether a piece of clothing is genuine or an imitation; whether it was stolen, where it was made and the product\u2019s general history. All this information could be accessible via a smartphone, and could help prevent counterfeiting and theft.\u201d As this tech becomes more broadly adopted &#8211; and that\u2019s a certainty, not a possibility &#8211; it will become increasingly difficult to counterfeit luxury goods.<\/p>\n<h2>Before you buy, check that QR code: blockchain can secure food, too!<\/h2>\n<p>If you\u2019ve ever bought organic produce or free range chicken and wondered what you were really getting for your money, you\u2019re not alone. With traditional supply chain management, it\u2019s impossible for retailers to guarantee that products are what they claim to be. In fact, even they may not know what they\u2019re selling! And whether a simple mistake was made in labelling or intentional fraud was being practiced, consumers (and retailers) have no way of knowing if they\u2019re being cheated.<\/p>\n<p>But here, too, blockchain offers a clear solution. When American retail giant Walmart tested its traditional supply chain, Sylvain Charlebois <a href=\"https:\/\/theconversation.com\/how-blockchain-technology-could-transform-the-food-industry-89348\">writes<\/a> for <em>The Conversation<\/em>, tracking a single mango back to its point of origin took six days, 18 hours, and 26 minutes. But once it embraced a blockchain-driven system, that same tracking was completed in just 2.2 seconds! For consumers, this means that they can now scan a QR code on the mango\u2019s label, and know instantly where it came from, how it was farmed, and whether it really is what\u2019s advertised. That\u2019s an assurance retailers can\u2019t afford to do without, and you\u2019ll soon see these codes on everything from lamb to pineapples.<\/p>\n<p>While it\u2019s easy to see the buzz around blockchain as nothing more than hype, for retail, that\u2019s simply not true. In an era where trust must be earned and facts must be verified, a digital ledger that guarantees transparency and security is a go-to tool for retail and a defining addition to the industry\u2019s digital revolution.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Transparency, transparency, transparency Blockchain is helping people make promises they can feel good about Counterfeit luxury items are a headache for major retailers Before you buy, check that QR code: blockchain can secure food, too! Customer expectations are changing, and a few things are becoming clear about their demands. First, trust is key. Globally, an [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":45547,"parent":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","footnotes":""},"categories":[2882],"tags":[4420,4421,4367],"article-type":[],"trends":[5474],"class_list":["post-57972","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-retail","tag-blockchain","tag-counterfeiting","tag-safety","trends-blockchain-en"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Blockchain really is the revolution retail\u2019s been waiting for - Richard van Hooijdonk Blog<\/title>\n<meta name=\"description\" content=\"Blockchain really is the revolution retail\u2019s been waiting for. &amp;#x2705\" \/>\n<meta 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