With the proliferation of digital marketing, there is a stark rise in the circulation of counterfeit products. Multiple online sites pose as real brands to sell products. This has become a growing concern in the retail industry. Fake goods lure customers from luxury items to food products by offering lower prices. However, this leads to huge customer financial losses and ruins the brand’s reputation. The existing product verification system is inefficient in running a successful quality check due to a lack of transparency and complexities of the supply chain. However, blockchain offers a robust solution to the problem. Blockchain ensures product authenticity through its advanced verification technology. The following section explores blockchain efficiency in product authenticity.
Blockchain Technology in Preventing Fake Marketing
Blockchain technology is a decentralized and immutable data-recording digital ledger that prevents scams and fraudulent data tempering. Here is how blockchain offers sound product verification to prevent the circulation of counterfeit products.
Enables Transparency in the Supply Chain
The supply chain of retail products involves multiple intermediaries making it challenging to track where the product is sourced from. As a result, goods were counterfeit on their way from the manufacturers to retail shopkeepers. Integration of blockchain technology in the supply chain prevents counterfeit foods from entering the supply chain.
Blockchain technology creates a transparent and immutable record of every transaction in teh supply chain. It assigns a digital identity to the product that helps the tracking. As a result, customers and retailers can easily verify the authenticity of the product.
Digital Product Tags
Digital product tags on goods prevent counterfeit products from circulating. Counterfeit goods often come with tags that appear real to teh extent that it becomes challenging to differentiate. To prevent such practices, digital tags such as QR codes, radio Frequency Identification tags, or near Feild Communication chips are attached to authentic products.
You can scan the QR codes to verify the authenticity of the product. As you scan the product you can access all the information such as manufacturer, dates of manufacturing, and the entire supply chain track records from blockchain databases.
Enhance Consumer Trust and Brand Loyalty
Product transparency and authenticity are extremely important for brand loyalty and customer satisfaction. Customers value brands that prove their authenticity to them. Brands would benefit if they leverage blockchain technology to prove their product authenticity to the consumers. This not only protects their brand value but also ensures that consumers are not purchasing false products. Some of the top brands that are using b.lockchain include, Nike, Rolex, and Louis Vitton
Protect Purchase of Luxury and Costly Products
The most affected party in the supply chain frauds are the luxury brands. Their brand name is often exploited to make huge profits by fraudsters causing huge financial losses for them. However, manufacturers can create a digital certificate for each luxury item they sell and store it in the blockchain system which consumers can access to verify the authenticity of the product. Thai prevents consumers from buying counterfeit products and financial losses. Also, brands get to secure their loyalty and reputation.
Prevent Pharmaceutical Frauds
Counterfeit medicines and foods are a global health concern. Many companies offer fake medicines that contain either harmful substances or insufficient ingredients that do not provide the desired therapeutic effects for the patients. These practices account for a significant proportion of patient deaths. Blockchain ensures that only authentic and quality products are consumed by consumers. It can track the supply chain of medicinal products ensuring no counterfeit products or raw materials enter the supply chain.
Secure and Verified Online Shopping
Online marketing is most risky as there are multiple fake companies offering products that are of low quality and fake. They also exploit top brands to mislead consumers and lure them to purchase their products. Blockchain helps solve this issue by allowing retailers to verify product listings before they go live. Online shoppers can scan product codes to check authenticity before buying. On teh other hand, retailers can use blockchain to remove fake product listings.
Final Thoughts
The blog has discussed how blockchain ensures product authenticity in detail. Blockchain efficiency is leveraged by multiple high-profile companies to prove their authenticity to the consumers and safeguard their brand values. It also prevents financial losses, especially for luxury goods producers. By providing transparent supply chains, secure product verification, and trust-building features, blockchain helps brands protect their reputation and ensures that customers get genuine products.