INS – How INS Ecosystem Plans to Change the Consumer Goods Market
The global market for consumer goods is gaining speed: according to Persistence Market Research, this rapidly growing one will be worth $8.5 trillion by 2020. In three years, the online consumer goods market will be worth $300 billion.
However, a vast chasm separates producers and buyers. Retail is still operating under the same principles as it was ten or twenty years ago. The rules of the game are dictated by middlemen: wholesale and retail sellers. There are far fewer of them than suppliers and end consumers, but they are the ones who almost completely control the market.
The inefficiency of this approach is apparent: buyers are forced to purchase goods at an average markup of 30-50%, and producers cannot properly track the supply chain and receive useful feedback. Almost a third of goods in retail chains is written off due to misallocation, and retailers pass the costs on to buyers by raising prices. The presence of a middleman significantly drags out the process of delivering goods from the producer to the consumer and makes it significantly more expensive.
INS Ecosystem, a global project launched by the founders of Instamart, Russia’s leading grocery delivery service, promises a real revolution in the consumer goods market. INS Ecosystem is a blockchain-based decentralized platform that directly connects producers, buyers, and logistics operators. In fact, it represents a full-fledged trade ecosystem, where consumers and suppliers manage supply and demand themselves by using smart contracts. The system has no place for expensive middlemen, so buyers don’t have to pay retailers’ expenses out of their own pockets.
Full article here.
Follow our Portfolio of 100 here.