Blockchain Can Transform Retail and CPG Industries - Deloitte

Cryptocurrency technology to reach “tipping point” in five years.

by Marin Marinov
29 May • 3 min
In Tech

Blockchain, the technology behind cryptocurrencies, can transform the retail and consumer package goods (CPG) industries, the British subsidiary of US audit company Deloitte estimated in a newly-published report. Based on an analysis of over 50 blockchain use-cases, Deloitte LLP UK expects blockchain technology to achieve mainstream adoption in both industries with dramatic changes seen occurring in the next five years.

Blockchain, developed as a Distributed Ledger Technology (DLT), is the next “big thing” for retail and CPG industries because of its ability to track all activities, Deloitte UK estimated in the report, dubbed “New tech on the block”.

“The ability of blockchain to track, trace, and authenticate products, record contracts, guarantee the movement of information and record transactions means it can be put to use across the entire value chain, benefiting businesses and consumers alike,” Steve Larke, partner and technology consultant at Deloitte wrote in the report.

The report

In the report, Deloitte UK has chosen 16 use-cases for deeper research of blockchain impact on three groups: consumers, supply-chain and payments and contracts. Its conclusions are:

1. Consumers can enjoy improved experience and protection because blockchain saves costs, increases trust and transparency, and brings safer and higher quality products;

2. The supply-chain of retail and CPG industries can become more efficient because of blockchain’s capabilities to monitor events and metadata, associated with the products (so-called traceability), to provide reliable data for regulatory compliance, to give flexibility without increasing operational costs and to improve management by bringing trust;

3. Payment and contract issues also see improvements because the cryptocurrency technology brings more trust by tracking the validity and implementation of contracts and transactions.

The tipping point

Deloitte predicts that the “tipping point” of blockchain impact on retail and CPG goods industries will be reached in five years with companies that do not plan implementing this technology being at "risk of falling behind competitors”. The audit company also expects the technology behind cryptocurrencies to cement its presence after 10 years.

“Blockchain has the potential to transform the way that individuals and organizations interact, the way that businesses collaborate with one another, the transparency of processes and data, and ultimately, the productivity and sustainability of our economy. It is in these applications of technology, not in the mining and trading of cryptocurrencies that Deloitte believes blockchain will thrive in the next ten years,” Deloitte LLP UK concluded in the report.

Blockchain, the technology that underpins cryptocurrencies like Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP), has broadened its implementation in various industries from banks to agriculture.