Blockchain In Retail Market Expected To Grow By 60% Through Next Five Years: Report
- Research & Markets is an analyst research group, which recently evaluated the blockchain industry.
- The report suggests that Asia and Australia are positioned to be leaders over the next five years.
As blockchain technology reaches countries around the world, retailers are starting to take note as well. Considering this interest, an analyst group called Research & Markets has recently released their report on the trends of blockchain around the world, covering the next five years. According to this data, the compound annual growth rate (CAGR) of the retail industry’s use of blockchain technology will reach 60.4% from now until 2024.
Much of the discussions on this matter are predicted to involve solutions using smart contracts, when it comes to adopting blockchain technology. Billing, supply chain management, and inventory management are expected to be automated with the use of smart contracts, along with other internal business operations.
By using smart contracts for the automation of payment processors, companies are able to save money as they eliminate the gateway operators that ordinary charge massive fees for these transactions. The use of smart contracts also allows companies to spend less time and money on auditing and accounting.
The report states that Asia will continue its role as a major player in the retail industry, as it hosts multiple startups for e-commerce. Australia also stands to be a solid competitor, as Research & Markets draws attention to a new pop-up store by Alibaba. This store is presently backed with blockchain transactions.
There’s already been a few financial services companies in Australia to team up with IBM and the Scentre Group for a pilot program, which would use a private blockchain to record retail lease bank guarantees. The Scentre Group is a shopping center operator.
In Russia, the analysts drew attention to their recent experience with Dixy, a food retailer with low costs that has already used blockchain tech for the purpose of tracking products from suppliers and factoring firms. Factoring firms are third parties that help businesses raise funds by purchasing discounted invoices from the business.