A mention of blockchain immediately brings two things to mind: cryptocurrencies and transactions. But companies are rapidly adopting technology and using it in innovative ways. With this, the marketing and brand managers are again setting a metamorphosis. While it was the infiltration of social media that upset them almost a decade ago, it is now blockchain that holds them in hand.
Brands must embrace this new technology considered "disruptive" and "innovative" and also at a fast pace, or they have to face oblivion.
Blockchain, as defined by Gartner, is a distributed ledger in which value exchange transactions are grouped into blocks, with each block chained to the former through guarantee mechanisms.
Santhosh Palavesh, Chief Innovation Officer at Belfrics, blockchain development company, states: "Although the brand and the advertising industry have been a bit naive towards the blockchain, there's a lot that blockchain can to offer".
The global blockchain market is expected to rise from $ 0.4 billion last year to $ 7.6 billion by 2022, according to a forecast by market research firm MarketsandMarkets. And it's time for brands to adopt blockchain to reap the rewards, experts say.
Confidence and transparency are crucial requirements for improving the relationship and loyalty between customer and brand. Blockchain effectively increases trust and transparency in multiple ways, feels experienced.
Chaitanya Hiremath, founder of Scanta, an augmented reality platform (AR), says that blockchain makes transparent the ways in which brands can connect with their target audience. "Authenticity is a key concern for both brands and consumers, especially in the online market world, and Blockchain allows companies to protect their brand and their intellectual property, as well as demonstrate that what they are advertising is truthful. "
Brands, especially luxury brands, have long faced the onslaught of counterfeit products, which cost the global economy up to $ 250 billion a year. With blockchain, the entire life cycle of a product can be monitored effectively, eliminating any possibility of proliferation of counterfeit products. Furthermore, blockchain can provide ample evidence that a brand is indulging in ethical and sustainable practices as required during the production and delivery of goods. Experts say brands are aware that consumers today are looking for products that are ethically produced. "Companies that are able to do this have an advantage over competitors who simply rely on marketing gimmicks without any proof," says Hiremath.
According to Parveez Nasyam, CEO and CEO of Xenium Digital, an experiential marketing agency, the originality will prosper and, as the brands will be able to control the exit of products, the customers will be able to verify the legitimacy of a product. "If a brand adheres to its core values and releases genuine products, marketers will have fun promoting them on innovative platforms."
Nasyam says that another advantage that holds the blockchain is that it eliminates the need for a centralized server with which hackers can interfere and "this implies that there can be no targeted attacks on a single user or brand".
Moreover, blockchain can also be used to organize the advertising / marketing industry, which today is largely disorganized, feels experienced. "It can organize media houses, buyers and sellers of media, advertisers, etc. While it standardizes prices to a large extent," says Palavesh.
Coming to the supply chain, blockchain can help brands move from an inventory-based model to a demand-driven model, reducing the supply chain, minimizing inventory and optimizing costs.
Experts say that almost 80% of global brands have or are planning to invest in blockchain.
According to Hiremath, diamond colossus De Beers uses the blockchain to trace the gems and their supply chain to make sure they do not come from conflict zones.
"Unilever is using blockchain in collaboration with IBM for their media purchasing duties, Samsung has invested in blockchain to create a decentralized Internet for Things network," says Nasyam.
- With blockchain, you can monitor the entire life cycle of a product, eliminating any possibility of prosperity of counterfeit products
- Blockchain also provides extensive evidence that a brand is devoting itself to ethical and sustainable practices as required during production and delivery
$ 7.6 billion – Global blockchain market by 2022
80% – Global brands have or are planning to invest in blockchain