Chinese Company Suning to use Blockchain in Fighting Counterfeits in the Retail Industry
Blockchain can protect the supply chain and combat counterfeits by providing end to end visibility and traceability in the entire supply chain. Suning, a Chinese retailer, has introduced the use of Blockchain for counterfeit protection before the Chinese shopping festival. It will apply to e-commerce platform operators, third party merchants, and online vendors.
How Suning Works
The supply chain participants are all linked to a single data collaboration platform. Every authorized personnel will be able to access Blockchain through a node; the node validator will validate all data before it is appended on the Blockchain. It will ensure traceability, provenance, and authentication in the supply chain.
A digital asset will mirror each trade item and logistic units in the physical chain in the Blockchain, the utility token. The token has a key that allows you to create a new entry into a ledger reassigning the ownership to someone else, to let them confirm and sign token transactions. Blockchain technology can serialize and track every trade item with a unique QR code for each. Once the food lands on a retailer’s shelf, consumers can scan a QR code on the food package with their mobile phones to receive food safety information about the product, including details as to what is in the box and its origin.
The aim of the Suning project is counterfeit prevention in China. The innovative technology will improve control over the supply chain by empowering customers to verify products before consumption.
It will improve customer relations and retention, as various brands can provide a higher level of essential data that boosts customer trust. The quality, unique characteristics, and sustainability of a brand can be documented. It also promotes stock control, to prevent stockpiling of unsold items by allowing real-time audits.