Blockchain has long heralded as the key in unlocking a circular economy. Blockchain sneakers allow transparency and traceability of both raw materials and the final consumer product, which in theory, opens the door to a ‘circular economy’ sneaker market.
Satoshi Studio has come to market with their ‘Satoshi One’ sneaker.
Satoshi Studio Blockchain Sneakers
Each pair of sneakers comes configured with a Blockchain-powered NFC chip. This chip will provide consumers with supply chain transparency, including both raw material info and origin.
At any point, consumers can send back their Satoshi sneakers back, and exchange for Bitcoin tokens to spend on a new pair. The company aims to recycle these used sneakers and utilise the raw materials to produce new pairs.
Further details on the Blockchain specifics can be read directly via Satoshi Studio.
Alongside Blockchain, Satoshi Studio has integrated several other sustainability-focused selling points into their product. Manufacturing locally in Europe, only selling on pre-sale, and donating a percentage of profit to a social enterprise are all added benefits.
Future of Sneakers
This release from Satoshi Studio sheds light on some key Blockchain functionality and just how well suited these are to the sneaker industry.
- Digital Identity- Offering a permanent digital record, Blockchain sneakers offers a solution to the wide-spread counterfeiting issues.
- Recommerce- The secondary sneaker market is now a billion-dollar business. Blockchain allows a permanent ledger of sales history.
- Circular Economy- Creating a permanent record of the original point of sale, both brands and retailers could offer recycling options for consumers and create a forward-thinking CRM strategy.
- Price Transparency- A key issue with sustainability is educating consumers in a price-led market. As blockchain becomes widespread, transparency of both raw materials and supply chain will become easily available to consumers.
An engaging and profitable CRM strategy is hard. Sneaker brands and retailers are all fighting for ways to meaningfully connect with their consumers.
A tremendous amount of time and resource invested; however, the result is often nothing more than bulk email sends and unused loyalty schemes. The lack of success will often, in turn, drive the need for discount codes to engage with consumers.
The concept of a circular economy not only has considerable upside for the environment but also has the potential to underpin a massive breakthrough in CRM. Genuine interaction through recycling could replace discounting and drive a long-term relationship with consumers.
Both brands and retailers could take back Blockchain-powered sneakers and provide a store credit to drive repeat purchases. This engagement is priceless and could revolutionise the post-purchase relationship with consumers.
Read an interview with the Satoshi Studio team via HighSnobiety.
Further Reading: Nike Sustainability “Move to Zero” Strategy. Read More