Globalization has pushed the boundaries of retail further than ever, giving us access to all sort of products from around the world. Production outsourcing has allowed companies to reduce costs by maintaining product quality and digital channels have created a new ways to reach consumers. However, this defragmentation has exposed brands to side-productions outside the books and grey and black markets. By certifying product provenance and authenticity, blockchain technology allows manufacturers to secure their products providing also transparency for consumers and a new ways of interacting with them.
At present, consumers are skeptical about everything they buy and retail companies can’t offer any provenance other than the seal on the container that says “manufactured in xxx.” So, using blockchain, the companies can finally offer the provenance as the consumer can track or see the entire supply chain of a single product. It will start with the suppliers and end with the consumer who bought it. It will provide the provenance the customers want now, and they can spend their money on an authentic product.
The longer the supply chain from the manufacturer to the final consumer, the more risk for products to fall into black or grey markets. It is then important to secure brands to avoid market loss due to product substitution or copy, a problem that accouts for over 25 billion dollars sales loss worldwide. Blockchain provides the means to identify original products outside their original final destination, allowing to mark clandestine distribution or sales channels.
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