Retailers and consumer packaged goods companies should factor blockchain technology into their business plans or risk falling behind, top accounting and consulting firm Deloitte said in a report Monday.
The report, titled “New Tech on the Block,” predicts interest in the technology will grow over the next two to three years, with a “tipping point” leading to widespread adoption occurring within five years.
“Those who do not consider the possibilities are at risk of falling behind,” Deloitte said. “By contrast, early adopters of the technology will have the ability to gain first mover advantage in generating value for their business.”
Deloitte said blockchain investments, prototypes and concepts are emerging in every major industry. Global investment in blockchain has exceeded $1.7 billion in the last three years. Deloitte also cites Gartner research predicting blockchain’s business “value-add” will grow to $176 billion by 2025.
The retail and consumer packaged goods industries risk being cut out of the picture as blockchain enables peer-to-peer interactions. “Blockchain’s power to create disintermediation firmly shifts the power in the relationship away from retailers and towards the consumer,” Deloitte said.
Because of that, the consumer packaged goods sector should explore how the blockchain can facilitate direct-to-consumer opportunities, while retailers should use the technology to offer better, more complete service to customers in order to avoid being replaced by the technology, Deloitte said. Read more here.