A deeper look into the workings of Tael & Techrock.
Tael is on the verge of a new phase focused on adoption, sales, and real-world usage. For you, as a Tael (ticker: WABI) token holder, it is important to know how Tael & Techrock each play their part in the ecosystem, and how our real-world sales and our partnerships impact you.
Over the coming weeks, we will publish several articles on major aspects of our ecosystem, detailing how things work.
Today, we’re talking about the business model around the Tael token, and the ecosystem it takes part in.
Techrock, formerly known as Walimai, is the company heading the ecosystem in which Tael tokens are being used. Techrock has developed a proprietary authentication technology based on NFC/RFID labels (in combination with unique, dynamic codes) and Hyperledger blockchain. Techrock labels are used to seal products in order to assure authenticity on both a physical and digital level. Using the proprietary tech as the core, Techrock has built a B2C marketplace where consumers can buy authentic consumer products.
1) Techrock has built a marketplace, in which authentic products are sold (B2C).
2) Techrock also operates as a supplier of authentic products (B2B).
The importance of Techrock providing a channel in which consumers can purchase products secured with our anti-counterfeit labels is evident: research indicates 40% of Chinese consumers regard food safety as a major concern.
The main motivators behind this sentiment are incidents in which fake baby milk powder killed 6 babies and hospitalized hundreds more, along with counterfeit cosmetics, and many more such occurrences.
In light of this, the reason behind consumer demand for safe, vital goods is no mystery.
Prior to this moment, Techrock has gone through extensive testing of its product, optimized its manufacturing costs, and expanded its sales network. After reviewing the promising results, certain pilot programs were initiated, and now a full rollout to the mass market is imminent.
Techrock offers a selection of authentic, critical goods in its marketplace. Critical goods are products consumers do not want to take a risk on. Therefore, the Techrock marketplace aims to populate itself with vitamins, infant formula, cosmetics, and alcohol products.
This initial focus may expand in the future based on further adoption.
Techrock allows merchants to offer verifiable authentic goods to their clientele, but also provides the possibility of getting their products featured on the main page of the marketplace, run special promotions (e.g. targeted discounts and 2-for-1 specials), send push notifications, and much more.
These marketing promotions on the Techrock platform cover roughly 20% of the percentage of sales.
This is where Tael plays a major role.
The loyalty point Tael (formerly WaBi)
Consumers are rewarded with Tael tokens for performing a variety of tasks, including ‘touching’ the label to verify the product’s authenticity, ‘touching’ the label after consumption, referring others to the Techrock platform, taking advantage of promotions, purchasing discounted products, and more. Acts such as ‘touching’ the Techrock smart label are already incentivized by the consumer’s desire to verify a product’s authenticity and track its journey through the supply chain, thus organically making the Tael ecosystem a part of their daily purchasing habit.
Consumers can redeem Taels in the Techrock and partner ecosystem, but cannot directly sell their Taels on exchanges.
Taels act as a loyalty point and can be used to pay for subsequent purchases. When Taels are redeemed as a discount, the brands/merchants can decide to hold and utilize the Tael, or allow them to be automatically and immediately sold on the exchange again.
Brands and merchants can process their Taels in three ways, each carrying their own benefits:
1) hold Tael for as long as they would like to benefit from the market
2) sell Taels instantly on the exchange to avoid FX exposure
3) utilize the Taels in further marketing campaigns
The net demand for Tael increases with every new consumer joining the ecosystem. In essence, these Taels are being “hodled” by consumers until their next purchase, at which point they receive new Taels. If, for whatever reason, consumers decide to leave our ecosystem, their Taels will remain unspent, essentially making them lifetime holders.
Taelpay, which processes payments of Tael, will at a later stage become interchangeable with different platforms where they can be used as a loyalty point. The vision is to have Tael used on as many platforms as possible, eventually becoming a method of payment in everyday stores in China and other countries.
Explanation of an example usage scenario, in layman’s terms:
For this example, we will assume a product costs $20, 10% is given back in Tael loyalty points to consumer, and Tael tokens are at a value of $0.50.
Mrs. Wang is looking to purchase authentic infant formula for her newborn. Instead of calling her nephew abroad to send baby food back home (who would, as of 2019’s legal rulings, need a license to do so), she visits the Techrock online shop. She makes the purchase on the Techrock marketplace, paying $20 for her desired product.
Upon arrival of the product, she uses the Taelpay app on her smartphone and touches the product label to authenticate the product, as instructed. She verifies the authenticity, opens the product, and touches the label again to get rewarded with 10% of her purchase in Tael loyalty points. Since she paid 20$, Techrock purchases 4 Tael tokens worth a total of $2 on the exchange (4x $0,50 = $2 = 10%) and sends Mrs. Wang 4 Taels. She keeps these Taels in her wallet, which can be used as a discount upon her next purchase.
We have chosen to facilitate Tael payments and reduce FX exposure for manufacturers, companies, and suppliers so they do not need any technical knowledge to participate, while retaining the ability to schedule costs ahead in a traditional fashion.
At the same time, Techrock has only minor FX exposure, since buying and selling of Tael tokens are done frequently.
Throughout Mrs. Wang’s consumer cycle, she did not need to deal with any technical complexities. She may see her freely gotten loyalty points increase or decrease in monetary value over time. This change in price gamifies her shopping experience and increases interaction with the Techrock app and its products. Thus further increasing the likelihood of repeat sales.
Increasing sales through proven demand attracts more products to Techrock marketplace, attracting more consumers, and creating a positive virtuous circle.
And all of that… by touching to authenticate.
This is episode one in a series of articles regarding the ecosystem:
Check out previous stories & updates on our Medium page:
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