This white paper explores global grocery market challenges, a technology paradigm shift offering transformative potential, and the business and technical aspects of the solution INS is developing for capitalizing on this potential. Highlights of the paper follow below: The grocery market, one of the largest consumer markets in the world, is forecast to reach $8.5 trillion by 2020. It is reaching a digital tipping point, with much of its growth to come from online. Online grocery, being the target segment for INS, is expected to grow from $98 billion in 2015 to $290 billion in 2020, according to IDG estimates.
Despite the tremendous growth, the grocery market has two large interrelated problems – abuse by grocery retailers and ineffective trade promotions.
The grocery market dominated by retailers. Retail chains capture a very high share of grocery revenue and have a huge influence over manufacturers, causing deep impact on consumers worldwide. Retailers dictate what food is grown and how it is processed, packaged, priced and promoted. As an example, in the UK, four retailers serve as a slim conduit for 7,000 manufactures to sell their products to 25 million households , which demonstrates how the existence of retailer abuse in the grocery industry has not only been allowed to develop but also thrived.
INS is implementing a decentralized ecosystem enabling consumers to save up to 30% on everyday shopping buying directly from grocery manufacturers.
Direct interaction between consumers and manufacturers. Bypassing retailers and wholesalers means a more personalized and transparent grocery shopping experience at lower prices.
Сonsumers will be able to decide which brands they want and goods they need. We call it “Consumption 2.0” since 21st century customers are tired from a one-way street type of communication, whereby retailers push goods onto them that maximize retailer’s profit – not what consumers really want. We also want consumers to have unimpeded access to independent and local manufacturers, including farmers, that do not fit retailer supply chain or procurement terms and can’t get their goods on retail shelves.
Enabling manufacturers to market their goods directly to the consumers. No more costly and inefficient trade promotions grabbed by retailers and wholesalers. INS will enable manufacturers to create bespoke marketing programs to reward their customers directly. These programs run on smart contracts and powered by the INS token as a means of reward. It is similar to miles-based reward programs of many airlines, but more advanced, cheaper to run and personalized thanks to smart contracts behind them. This was hardly possible before the blockchain and smart contract era.
INS has the prerequisites to perform an ambitious task of disrupting the grocery industry based on our deep industry knowledge and confirmed interest from the largest grocery manufacturers in the world.
More than 4 years of grocery industry track record. INS is founded by veterans of the online grocery industry, using the knowledge and experience acquired since 2013. We have built strong relationships manufacturers and gained valuable feedback from consumers.
INS received strong interest from both large and small consumer goods manufacturers in the world. Selected logos of manufacturers that expressed interest to sign up (on a global or regional basis) are provided below.