(INS) - INS Ecosystem
What is INS?
The INS ecosystem is a scalable blockchain-based platform creating a global decentralized marketplace that enables consumers to buy groceries directly from manufacturers at lower prices in a convenient, streamlined fashion. INS will allow sellers to save on direct promotion by eliminating the need for vendors and supermarkets.
The grocery market industry is forecast to reach $8.5 trillion by 2020. Much of this growth will come from online sales. Online grocery alone is expected to grow from $98 billion in 2015 to $290 billion in 2020 according to IDG estimates. Despite this growth the grocery market has two largely interrelated problems, abuse by grocery retailer, and ineffective trade promotions. This market is dominated by retailers, and the retail chains capture a very high share of revenue, have large influence over manufacturers, and this causes negative impact on consumers globally. Retailers dictate what food is grown, how it’s processed, packaged, priced, and promoted.
On top of all that there are ineffective, costly, and outdated trade promotions in place. Trade promotion spending represents 17% of manufacturers sales. Each year there are over $50 billion spent on trade promotions that never even reach the consumer. The unfairness in the promotion-laden atmosphere goes hand in hand with the ever rising costs of promotions as well as the inefficiencies they produce. 95% of manufacturers agree that trade promotions are highly inefficient.
Inefficiencies in the retailer supply chain
The average meal in the US has to travel on average 1,500 miles to get from farm to plate. This problem is relevant in many countries and it leads to acute financial and ecological consequences that can have a significant adverse impact in the long-term. The distance food must travel from place of origin to where it is consumed or purchased increases significantly when buyers import food from other parts of the country, region, or world. In distribution centers and on grocery store shelves, food is being wasted. Each night retailers must throw out some perishable items, and according to a recent survey, 400 million pounds of food is served by supermarkets, yet almost a third of it is wasted annually. That is roughly 133 million pounds of food wasted.
INS Market Overview
The global grocery industry is forecasted to grow at a rate of 6.1% annually from 2016 – 2020. Eventually reaching an estimated $8.5 Trillion in 2020. Being that the grocery industry is a defensive one, meaning that its generally stable in either good or bad economic times, given there will always be a demand for food. As an example of the consumer impact, the figure below shows the portion of consumers’ household spending on food in a variety of countries.
The concentration of grocery retail markets is high throughout the world. Top grocery retail corporations comprise an incredibly high share of the market. For example, in Portugal, 90% of the grocery market is controlled by the nation’s top three retailers. As the market becomes more concentrated, competition gets weaker and prices of grocery products rise.
The global online grocery market increased by 16% in 2016. IGD projects double-digit annual growth rates for online grocery in largest markets by 2020. Top 10 global markets alone are expected to explode from $98 billion in 2015 to $290 billion in 2020.
– The Marketplace:
This is the visual hub where listed products can be viewed and added to an online shopping cart.
The people that are looking to buy groceries and similar goods.
The farmers and growers who would like to sell their fresh produce.
– Fulfillment Operators:
These individuals run operation centers, work behind the scenes, facilitate deliveries, etc.
Peter Fedechenkov and Dmitry Zhulin are the founders behind INS. Peter has been in the retail and tech sector for 10+ years. He has previously worked with companies such as Goldman Sachs, and IBM. Also, he holds a degree from Harvard Business Schools and teaches at the Stockholm School Of Economics. Dmitry is a venture capitalist and his main focus is in the retail markets and e-commerce. He has previously worked with VTB Capital Private Equity, Rothschild, and PwC (pricewaterhousecoopers) and he holds a degree from the University of London and a PhD in finance.
Investing in cryptocurrencies and Initial Coin Offerings or ICO’s is a highly risky as well as speculative financial maneuver. This article is not a recommendation by Cyber Lion Weekly or the author to invest in cryptocurrencies or ICO’s. Since each individual’s situation is unique, a qualified professional should always be consulted before making any financial decisions. Cyber Lion Weekly makes no representations or warranties as to the accuracy or timelines of the information contained herein.