With consumer using more automated and semi-automated electronic devices, the demand for consumer electronics is rising. Consumer electronics such as smartphones, smart TVs, smart home appliances are gaining popularity with the introduction of Internet of Things (IoT), mobility and data-driven technologies.
The global consumer electronics market is expected to reach around $3 trillion revenue by 2020, registering 15% CAGR. By offering maximum features at low cost, Asia-Pacific will witness a rise in demand for consumer electronics. Moreover, wearable and smart home devices are expected to hold a plethora of opportunities for manufacturers for future growth.
Blockchains to reshape consumer electronics industry
The blockchain is a distributed database that can record transactions and any structured information.
Blockchain facilitates and records secure online transactions. As a basis of cryptocurrencies, eg, bitcoin. Blockchains are considered as a new form of information technology that will change the consumer electronics industry. The block in a blockchain will record some of the transactions and once the transaction is done it goes into a blockchain as a permanent database.
It is difficult for customers to verify actual cost of the product due to lack of supply chain transparency and customer have no reliable way to get the actual value of the products or services, hence the cost paid by the consumer is not an accurate estimation of actual production cost. Also, customers cannot track any damage to the product in this supply chain process.
Transparency is in high demand from customers. Hence, use of blockchain technology can track the product through complex supply chain process. With its capability, blockchain is creating new opportunities for supply chain management. Transparency is the critical part of blockchain technology, hence integrating it with supply chain management of consumer electronics will create new possibilities.
Using a blockchain public ledger, the ownership and transfer of various products can be tracked. For example, IBM’s latest blockchain based service tracks highly-valuable products in a secure cloud system. Another company, known as Everledger has developed a product called as ‘Chai Wine Vault’. This product ensures safety in diamond supply chain management.
Counterfeiting is often viewed as a crime that can affect safety and health of customers and can also damage the economy of a country or region. However, blockchain technology provides digital identity tools that protect physical property and packaging. For instance, BlockVerify is a blockchain based anti-counterfeiting solution that prevents counterfeiting using blockchain technology.
Also, blockchain technology helps in marketing. It ensures that offers, discounts and promotions are sent to customers with help of blockchain enabled smartphone app. The biggest benefit is that it doesn’t disclose customers’ personal information.
Hence, blockchain can help in building brand image, fight fraud and boost margins for manufacturers of consumer electronics.
In terms of consumer electronics products, smartphones are expected to witness the higher demand and will emerge as one of the fastest growing consumer electronics product. Smartphones will be followed by tablets and smart TVs as the fastest growing consumer electronics.