ABSTRACT
This white paper explores global grocery market challenges, a technology paradigm shift
offering transformative potential, and the business and technical aspects of the solution INS is
developing for capitalizing on this potential. Highlights of the paper follow below:
The grocery market, one of the largest consumer markets in the world, is forecast to reach $8.5
trillion by 2020. It is reaching a digital tipping point, with much of its growth to come from
online. Online grocery, being the target segment for INS, is expected to grow from $98 billion in
2015 to $290 billion in 2020, according to IDG estimates.
Despite the tremendous growth, the grocery market has two large interrelated
problems - abuse by grocery retailers and ineffective trade promotions.
The grocery market dominated by retailers. Retail chains capture a very high share of grocery
revenue and have a huge influence over manufacturers, causing deep impact on consumers
worldwide. Retailers dictate what food is grown and how it is processed, packaged, priced and
promoted. As an example, in the UK, four retailers serve as a slim conduit for 7,000
manufactures to sell their products to 25 million households , which demonstrates how the
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existence of retailer abuse in the grocery industry has not only been allowed to develop but also
thrived.
1 Source: Consumers International.
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Ineffective, costly and outdated trade promotions practice. Trade promotion spending
represent 17% of manufacturer’s sales . Each year, over $50 billion on trade promotions never
2 3
reaches the consumer.
Unfairness in today’s promotion-laden atmosphere go hand in hand with
the rising costs of promotions and the inefficiencies they produce. 95% of manufacturers admit
that trade promotions inefficiency is an extremely important issue.
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INS is implementing a decentralized ecosystem enabling consumers to save up
to 30% on everyday shopping buying directly from grocery manufacturers.
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Direct interaction between consumers and manufacturers. Bypassing retailers and wholesalers
means a more personalized and transparent grocery shopping experience at lower prices.
Сonsumers will be able to decide which brands they want and goods they need. We call it
“Consumption 2.0” since 21st century customers are tired from a one-way street type of
communication, whereby retailers push goods onto them that maximize retailer’s profit - not
what consumers really want. We also want consumers to have unimpeded access to
independent and local manufacturers, including farmers, that do not fit retailer supply chain or
procurement terms and can’t get their goods on retail shelves.
Enabling manufacturers to market their goods directly to the consumers. No more costly and
inefficient trade promotions grabbed by retailers and wholesalers. INS will enable
manufacturers to create bespoke marketing programs to reward their customers directly. These
programs run on smart contracts and powered by the INS token as a means of reward. It is
2 Source: Deloitte, American Marketing Association.
3 Source: Deloitte.
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Ibid.
5 For smaller manufacturers. 5-15% savings on average are expected.
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similar to miles-based reward programs of many airlines, but more advanced, cheaper to run
and personalized thanks to smart contracts behind them.
This was hardly possible before the
blockchain and smart contract era.
INS has the prerequisites to perform an ambitious task of disrupting the grocery
industry based on our deep industry knowledge and confirmed interest from the
largest grocery manufacturers in the world.
More than 4 years of grocery industry track record. INS is founded by veterans of the online
grocery industry, using the knowledge and experience acquired since 2013. We have built strong
relationships manufacturers and gained valuable feedback from consumers.
INS received strong interest from both large and small consumer goods manufacturers in the
world. Selected logos of manufacturers that expressed interest to sign up (on a global or
regional basis) are provided below.
MARKET OVERVIEW
GLOBAL GROCERY MARKET
❖ The grocery market is one of the largest consumer markets in the world: it is expected
to reach $8.5 trillion by 2020 with up to 50% share of a customer’s wallet
❖ Grocery retailers have acquired a dominant market share and high concentration: up to
90% of the market in many countries is controlled by a handful of retailers
❖ The grocery industry is reaching a digital tipping point, with much of its growth
expected to come from online
A VERY LARGE MARKET WITH EXTENSIVE IMPACT
The global grocery industry is forecasted to grow at a 6.1% annually from 2016 to 2020,
reaching an estimated $8.5 trillion in 2020. The grocery market is a defensive one which
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means that it tends to stay stable in good and bad economic times, given there will always be a
demand for food.
One of the biggest segments of retail and comprising a significant share of the consumer’s
wallet, the industry has a deep impact on grocery sector stakeholders, particularly
manufacturers and consumers. As an example of the consumer impact, the figure below shows
the portion of consumers’ household spending on food in a variety of countries.
Share of household expenditures spent on groceries
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14 Source: Persistence Research, Food Retail Market Will Reach $8,541.9 Billion Globally in 2020 (2014).
15 Source: USDA, Economic Research Service (2012).
HIGH MARKET CONCENTRATION LEADS TO HIGHER PRICES
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.
Share of national grocery market controlled by top retail chains.
ONLINE GROCERY WILL EXPLODE
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.
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Top 10 online global grocery markets and forecast to 2020
OVERVIEW
The INS ecosystem will become the first global decentralized grocery marketplace where
consumers can buy products directly from manufacturers, enjoy low transparent prices for a
wide range of high quality products, and save on direct promotions. Manufacturers compete for
consumers and interact with them directly.
Comparison with competitors
INS Ecosystem Limited, incorporated as a BVI company (“INS”), is the official entity that creates
the INS tokens, platform and technology. INS is focused on releasing open source cryptographic
technologies that enable operation in the INS ecosystem. For the avoidance of doubt, the INS
tokens do not provide token holders with any ownership or other interest in INS. Token holders
are not entitled to any guaranteed form of dividends, revenue distributions, and voting rights.
To become an ecosystem participant, the user creates an account on the INS platform.
During
the registration, the system will create a user profile and a wallet. Each participant of the
ecosystem will be provided with a wallet that preserves all data in the decentralized database
and interact with other parties, utilizing smart contracts. We plan to place the INS token on
cryptographic token exchanges, giving an opportunity to openly buy them (to residents of
countries where the purchase of digital tokens does not violate local laws).
ECOSYSTEM PARTICIPANTS
The ecosystem will be built in accordance with a scalable and decentralized approach that
ensures stability and sustainability in the long term.
The ecosystem will involve the following participants, which will participate as depicted in the
next diagram:
● Platform
● Consumers
● Manufacturers
● Fulfillment (fulfillment center operators and workers, couriers)
The fees described on the ecosystem map above may be subject to change at a later stage.
PLATFORM
The INS platform is a decentralized marketplace that allows manufacturers to join, publish their
products for sale, carry out promotion and loyalty campaigns, and get feedback from
consumers. It enables consumers to order those products and facilitates the order fulfillment
process.
INS roles include:
● INS token creation and the token launch to fund development and expansion
● Establishment of a decentralized, fair and secure model for order execution
● Development of smart contracts to run the order payment and fulfillment process
● Release of the customer website and app, fulfillment app for fulfillment center workers
and couriers, and web interfaces for manufacturers and fulfillment center operators
● Creation of an effective incentive model for all parties to join the INS ecosystem
● Development of an active marketing campaigns to ignite initial traction
● Elaboration of the ecosystem’s regulatory aspects
MANUFACTURERS
Manufacturers are companies or individuals in the business of fresh produce, groceries and
consumable household items. They could range from local farmers to large multinationals, such
as Procter & Gamble,
Unilever, Coca-Cola, etc.
Manufacturer roles include:
● Publish products
● Deliver products ordered by consumers to fulfillment centers
● Promote the INS ecosystem by bringing traffic via promotions of derived apps
CONSUMERS
Consumers are individuals or companies that want to buy online high-quality groceries at
cheaper prices. Orders can be placed via the INS website, INS app or custom apps derived by
manufacturers from the app reference implementation.
Consumer roles include:
● Search products listed by manufacturers, make orders and pay for them
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● Participate in feedback requests
● Receive promotion, loyalty, referral and feedback rewards
FULFILLMENT
FULFILLMENT CENTER OPERATORS
Fulfillment center operators are owners or operators of existing warehousing facilities and/or
delivery fleet. They provide the space where workers take products delivered by manufacturers
and assemble orders.
INS will engage independent fulfillment center operators to join the ecosystem to ignite fast
geographical expansion.
FULFILLMENT CENTER WORKERS
Fulfillment center workers, employed by a fulfillment center operator or acting as independent
contractors, will follow instructions received via the INS fulfillment app to:
● Collect products delivered by manufacturers to fulfillment centers
● Assemble products into orders
● Pass assembled orders to couriers
INS is exploring also attracting independent workers to join the ecosystem.
COURIERS
Couriers, employed by a courier company or acting as independent contractors, will follow
instructions received via the INS fulfillment app to:
● Pick up orders from fulfillment centers
● Deliver orders to consumers
INS will seek to attract independent couriers and courier companies to join the ecosystem.
APPS & INTERFACES
We plan to develop and publish a website and mobile apps for consumers, as well as mobile
apps and web interfaces for all other ecosystem participants.
CONSUMER APPS & WEBSITE
Consumers will shop for groceries and provide feedback on the website or in the apps. The
official consumer app implements the consumer side of the model including access to smart
contracts and access to products from a decentralized cloud storage.
The app will be published as open source software on GitHub and serve as the formal reference
implementation. Manufacturers can alter the official app and release their own branded and
customized apps. We will publish an open source customization software development kit
(SDK) with tutorials and documentation to make the app customization process as easy as
possible. Customized app implementations are not forks of the INS platform and are not forks
of the INS token but simply a different client for the same network.
ROADMAP
Our roadmap involves many different aspects, such as technology development, operational
infrastructure installment, signing partnerships, and launching marketing initiatives. The
preliminary roadmap is presented below. Dates and activities may be subject to change.
GEOGRAPHICAL EXPANSION PLAN
We plan to choose cities for expansion based on the population size, income level and grocery
market concentration ratio. The map below presents a preliminary list of cities, which might be
subject to change as we progress with the project.
INS founders’ previous experience with Instamart serves as a very solid jump start. We plan to
actively engage independent fulfillment center owners to join the INS ecosystem, further
accelerating expansion and enhancing the decentralized nature of the ecosystem
Wibesite: https://ins.world/
Mhitepaper: https://ins.world/INS-ICO-Whitepaper.pdf
Telegram: https://t.me/ins_ecosystem
Facebook: https://www.facebook.com/ins.ecosystem/
Twitter: https://twitter.com/ins_ecosystem
My bitcointalk (soplo): https://bitcointalk.org/index.php?action=profile;u=1098742
ETH: 0xcBa9A3AC842C203eAAA4C7Cb455CFf50cEe30581
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