By
Mayowa Adebajo
March 12th, 2024
INS plans to change the grocery market ecosystem by implementing blockchain technology as a solution to the most acute problems.
Since 2008 the global market has been suffering the descending rates of economic growth which have already lowered from 7% to 3%. Such crisis conditions affect the whole global market ecosystem – the competition between the main players becomes even more intense forcing the producers to do their best in order to cut their expenses.
Grocery products have always been in high-demand. But, despite the fact that grocery industry is an essential part of everyday life, its margin is extremely low. The retailers gain not more than 6% of the profit. Usually, cutting the expenses on 0.5% doesn’t seem that big of a deal, but when it comes to grocery, such savings would be significant for producers, retailers and consumers as well.
INS Ecosystem, the new global project founded by Instamart grocery delivery service team, plans to change the situation by implementing an increasingly popular blockchain technology.
INS is a decentralized ecosystem enabling consumers to buy directly from grocery manufacturers, bypassing retailers and wholesalers, at prices up to 30% lower than in supermarkets. It encourages manufacturers to promote and sell their products directly to consumers and request their valuable feedback, while leveraging the decentralized blockchain-powered consumer-to-manufacturer interaction allows a more personalized and trustworthy grocery shopping experience at significantly lower prices.
As part of the supply chain, blockchain technology has already been applied by a number of producers and retailers including such giants as Tyson Foods, Dole Food Company, Nestle, Kroger, McCormick & Company, Driscoll’s and McLane Company. Due to IBM Blockchain Platform, the food giants are now able to monitor food supply chains and quickly identify the source of contaminated products. All participants of the food supply chain have an access to trusted information about the food, including its origin, condition and movement.
Under conditions of high competition, it is very hard for small companies to get through major producers like Procter&Gamble or Coca-Cola. Furthermore, consumers aren’t interested in buying the products of only one producer, while even giant companies don’t always have their own distribution networks. Blockchain technology will make it possible to unite all the main parties (producers, retailers and consumers) on a one single platform. The players will be able to monitor who ordered the product, where it currently is, and whether the payment has been executed.
Another positive side of blockchain technology is marketing personalization. The producers will be able to reward their regular customers with special bonuses, for example in the form of a platform token which customers can use for purchasing other products or sell on the exchange. Double win effect – the producers spend less money on advertising and the customers get rewards for buying everyday life products.
And what about the unsaleable surplus goods, the costs of which are included into the price? Finding a way to cut down these expenses would definitely save great amounts of money. And the problem can be solved again by blockchain technology which will make the supply follow the demand and not vice versa as we may observe it now.
Relying on ICOBox’s help with technical, legal, and marketing services, INS expects to implement blockchain and smart contracts as an ideal fit to make the system transparent, fair, inexpensive to run, and highly scalable, according to the press release. INS gears up for its ICO starting on November, 27.