INS – INSP Grocery Consumer Loyalty Rewards Blockchain ICO?
INS describes itself as a “decentralized consumer ecosystem powered by blockchain.” Find out how it plans to reinvent the grocery industry today in our review.
What Is INS?
INS, or INS Consumer Ecosystem, directly connects grocery manufacturers and consumers to “overcome retailer domination” in the grocery industry. The blockchain uses smart contracts to complete transactions. Payments can be made in fiat currencies, cryptocurrencies, or INS tokens.
Overall, INS aims to deliver better quality groceries to consumers at a cheaper price, while manufacturers have full control of the prices and availability of their products.
Blockchain technology has removed intermediaries in a number of industries – from banking to investing. Now, INS wants to use blockchain to remove grocery stores as an intermediary between consumers and manufacturers.
Benefits of INS
INS Consumer Ecosystem aims to deliver the following benefits to consumers and manufacturers:
Benefits to Consumers
- High-quality groceries available for a cheaper price than in stores
- Groceries can be purchased online easily and conveniently
- Unlimited access to suppliers of choice
Benefits to Manufacturers
- Full control of product pricing and listing
- Market and promote products directly to consumers
- Fast and detailed customer feedback
INS claims that “hundreds of manufacturers” have already expressed interest in joining the INS ecosystem, including 7 out of the top 20 FMCG manufacturers worldwide and 500+ manufacturers in total. These manufacturers include both local and global manufacturers based worldwide. A selection of brands and manufacturers who have expressed interest is available online at INS.world.
What Problems Does INS Seek to Solve?
INS believes that retailers are taking a disproportionate share – and have a disproportionate level of control – of the grocery industry. The grocery market is dominated by retail chains. This leads to problems like:
- A retailer’s bargaining power negatively affects manufacturers
- Limited choices and high prices burden consumers
- The average market for retailers is 30 to 50% compared to the supplier’s prices
- The top 5 retail chains in most countries worldwide have a market share of 60% or higher
- Manufacturers spend too much money on marketing, and much of that marketing is directed to retailers – not consumers; marketing is the second largest expense for manufacturers (after the cost of goods), and 70% of marketing is spent on trade channels (like wholesalers and retailers)
- Supply chain inefficiencies, including long distances between the point of manufacture and the point of consumption
The global grocery market will be an $8.5 trillion industry by 2020. INS wants to position itself to get a slice of that industry.
INS Ecosystem Features
Some of the core features and functions of the INS platform include:
- A fair, secure, and decentralized model for order execution
- Smart contracts to run the order payment and fulfillment process
- Release of the customer website and app, as well as a fulfillment app for fulfillment center workers and couriers, and web interfaces for manufacturers
- An effective incentive model for all parties to join the INS ecosystem
- A way for companies to meet regulatory requirements
- Manufacturers can use the platform to publish products, deliver products ordered by consumers to fulfillment centers, and promote the INS ecosystem by bringing traffic via promotions of derived apps
- Consumers can search products listed by manufacturers, make orders, and pay for them
- A reputation system to establish trust between counter parties, with consumers and fulfillment companies being rated according to previous transactions
- Rewards system where sellers compete to offer better rewards to consumers to convince them to shop
- Product search system based on a decentralized file storage network, where consumers can apply sorting and filters to choose what they want to buy
- Consumers can pay in fiat, BTC, ETH, or INS tokens
Who’s Behind INS?
INS was founded by Peter Fedchenkov and Dmitry Zhulin. Fedchenkov previously worked with Goldman Sachs and IBM, and teaches a class on retail at the Stockholm School of Economics. He also has an MBA from Harvard Business School.
Zhulin, meanwhile, is an experienced venture capital and private equity professional specializing in retail and ecommerce. He has previously worked with VTB Capital Private Equity, Rothschild, and PwC.
Prior to launching INS, the two founders created Instamart, a leading same-day grocery delivery service in Russia.
INS lists Eyal Hertzog, co-founder of Bancor, as its product advisor.
The INS Token Sale
The token sale for INS tokens is scheduled to begin on December 4, 2017 at 11am (GMT). The token sale has a hard cap of 60,000 ETH and a soft cap of 20,000 ETH.
Tokens are set at an exchange rate of 1 ETH = 300 INS. All INS tokens are ERC20-compliant tokens built on Ethereum.
Of the total supply of tokens, 60% are dedicated to the token sale. The remaining tokens are reserved for the team (15%), a reserve fund (20%), and advisors, early supporters, and bounties (5%). There’s a total supply of 50 million INS tokens, although the exact number of tokens generated will depend on the funds raised during the ICO.
How Do INSP Tokens Work?
INS tokens are the primary loyalty token used by the INS ecosystem. However, the company has announced a separate product called INS promo tokens, or INSP. These tokens are being airdropped to all Ethereum addresses that hold more than 0.1 ETH.
INSP tokens provide an additional 5% bonus to purchase INS tokens during the token sale. It’s just a promo token, and it cannot be exchanged into INS.
INS is an ecosystem that aims to reinvent the grocery industry by connecting manufacturers directly with consumers. The INS ecosystem replaces the grocery stores and retail outlets that traditionally act as middlemen. Consumers can customize their delivery options, browse from a worldwide network of distributors, and enjoy lower costs on a wider range of grocery items.
To learn more about INS, or to participate in the token sale, visit online today at INS.world.