Māori Exporters to Adopt Blockchain Technology
A new project is set to launch soon with the aim of providing vigilant Chinese customers a variety of top-quality goods from New Zealand, such as wine and food products, while being able to trust that the delivered items are completely authentic.
A New Collaboration
Three companies are collaborating on this initiative, AsureQuality, NZ Trade, and NZ Post, to design a system for delivery of any items bought on the e-commerce website coming from New Zealand, with every product having an online log that reveals where each item came from.
There is a huge issue with trust when SMEs in New Zealand deal with the Chinese market because the country is filled with ersatz items and even food that can pose a danger to the consumer that are sold everywhere. Another problem they face is acquiring Chinese customers without the need to go through multiple mediators, with every single one taking a slice.
Tmall, Alibaba’s exceptional e-commerce network, provides the solution to the second issue as per NZ Post’s GM for global strategies and partnerships, Dene Green. Furthermore, a sign-off from NZ’s SOE company for food testing has provided a solution for the first issue.
The new service is set for release on 11 November and blockchain will be implemented on the network before February 2019.
Blockchain technology is a sort of public online directory of Txs that is structured by one organization but available to every computer on that whole network. With this specific project for the Māori, users in China will be able to scan the QR code on the item as soon as it is delivered and know precisely where it came from.
Green has expressed that buyers in China trust products from NZ and they respect values like guardianship, but ripoffs happen a lot in China and pose a huge problem.
The developers of blockchain tech for the project will be TrackBack, based in Auckland. If everything is successfully implemented, the project will serve as a starting point for other NZ organizations who would want to start selling their items on international e-commerce websites.
The director of Trackback, David McDonald, expressed that the main idea is to transform that trusted feeling of buying at a Sunday market and exporting it on an international scale. He noted that there exists a lot of high-quality producers in NZ who want to work within massive markets like the Chinese one.
Green went on to say that the trust foundation behind the partnership could be considered a significant shift for the company because there’s no doubt that customers would pay for premium products from NZ after confirming its credibility.
Currently, a lot of premium products from NZ infiltrate the Chinese market through Australia or Daigou grey markets. Green said that Daigou for items from NZ is worth 100s of millions of dollars per year and companies in NZ are not able to receive profits when exports are done like this.