Fall 2019 - Inside Outdoor Magazine

Tech Savvy Inside Outdoor | FALL 2019 48 Known primarily as the distributed ledger technology behind cryptocur- rency Bitcoin, blockchain is now being examined for other applications by enterprises across several verticals. Among the primary uses are asset tracking and tracing and supply chain management, said Csilla Zsigri, senior analysts at 451 Research. “Supply chain-related use cases are gathering a lot of attention for a wide range of products across indus- tries (e.g., food items, luxury goods, prescription drugs, vehicle parts) for authenticity, efficiency and transparen- cy reasons, among others,” said Zsigri. A case in point within the outdoor space is Lenzing Group, which is utiliz- ing blockchain technology to ensure complete transparency and traceability for brands and consumers of its TEN- CEL fibers in finished garments. Ulti- mately, the supply chain transparency from wood to garment and home tex- tiles will enable all customers and part- ners to identify TENCEL fibers and the respective wood source in each produc- tion and distribution step. By scanning a QR code on the final garment, con- sumers will be able to detect the origin of the clothes they intend to buy. After evaluating various initiatives, Lenzing decided to join the platform of the Hong Kong based technology company TextileGenesis to accomplish the project. “The blockchain technology en- ables brands and consumers to identi- fy TENCEL branded fibers across each production and distribution step from fiber-to-retail of the finished garment or home textiles. The technology also allows consumers to verify the gar- ment composition and the underlying textile supply chain at the point of sale, simply by scanning the barcode with a mobile device,” explained Andreas Dorner, Lenzing commercial textile di- rector Europe & Americas. The first pilot was presented at this year’s Fashion Summit in Hong Kong on September 5. In the coming months more partners will be involved along the entire value chain. Lenzing expects the platform to be fully operational as of 2020. Elsewhere, Swedish heritage brand Fjällräven recently used blockchain in a viral back-to-school marketing cam- paign. For this particular giveaway cam- paign, players who “shared” a virtual backpack obtained digital “Fox Coins,” a type of branded cryptocurrency in the form of a blockchain-based, non- fungible token that possesses similar traceability and verification attributes associated with Bitcoin. The coins were grabbed using the augmented reality on players’ smartphones. The more shares, the more coins one entered toward the giveaway. “We continually search for creative ways to meet our audience where they are and offer new opportunities to involve them in the Fjällräven conver- sation, whether on the trailhead, on- campus or online,” said Nathan Dopp vice president of Fenix Outdoor Interna- tional AG, CEO Americas for Fjällräven. While emerging in-store technologies, such as in-app store navigation, augmented reality and smart fitting rooms, are still at the cusp of consumer awareness and adoption, those who have tried or are aware of newer tech show interest and enthu- siasm for it, show surveys by the National Retail Federation. In the near term, however, “consumers are primarily interested in the use of technology to meet their most basic, tactical pre- purchase needs,” said NRF. That is not to say that personaliza- tion or “retail-tainment” are totally off of shoppers’ radars, “but they want retailers to deliver on the basics and take uncertainty out of the process first,” NRF analysts continued. Outdoor Brands Leverage Blockchain In-Store Tech Then & Now Q:Which of the following are primary use cases for blockchain/distributed ledger technology at your organization? Source: 451 Research Unit Prices Drive Source: American Alpine Club; NPD G 41.4% Asset ‘track and trace’ Trusted sharing and reconcilation of data Asset transfer and monetization Digital identity and certified claims Risk managment and legal/regulatory compliance Other 51% 48% 48% 48% 44% 5% Issues consumers look to technology to solve Show me if a product is in stock or available Help me compare prices or reviews Make it easier for me to find a product or location Let me try an item before buying it (either in person or virtually) Make my shopping experience more fun or meaningful Help me discover new products or brands Connect me to a product or brand expert Recommend items for me to buy 55% 36% 33% 33% 29% 27% 26% 25% 25% 52% 49% 43% 47% 41% 38% 33% Very interested in these technology or solutions Ju 25% 20% 15% 10% 5% 0% -5% -10% Years of Parti Source: Outdoor Found 1 YEAR 2 YEAR Q:Which of the following are primary use cases for blockchain/distributed ledger technology at your organization? Source: 451 Research 41.4% Asset ‘track and trace’ Trusted sharing and reconcilation of data Asset transfer and monetization Digital identity and certified claims Risk managment and legal/regulatory compliance Other 51% 48% 48% 48% 44% 5% Issues consumers look to technology to solve Source: NRF Show me if a product is in stock or available Help me compare prices or reviews Make it easier for me to find a product or location Let me try an item before buying it (either in person or virtually) Make my shopping experience more fun or meaningful Help me discover new products or brands Connect me to a product or brand expert Recommend items for me to buy 55% 36% 33% 33% 29% 27% 26% 25% 25% 52% 49% 43% 47% 41% 38% 33% Very interested in these technology or solutions Very important that brands or retailers have these technologies and innovations