The global demand for luxury wine and spirits has only gone up in the past few years. Studies show that while the market size was worth $970 billion in 2019, it is expected to rise to $1,411 billion by 2027 at a CAGR of 4.9% during the forecast period. With both brands and consumers increasingly making their way into the competitive market, it has become clear that there is a need and scope for technological advancements in the industry.
The role of blockchain technology in the wine and spirits industry
Blockchain technology has been an innovative force for wine and spirits brands in several ways. Recently, Australian winemaker, Penfolds released one of its rare wines in the form of an NFT for $130,000 USD to be purchased using Ethereum. Similarly, popular celebrities like Sarah Jessica Parker and Graham Norton have been holding virtual wine auctions to sell sought-after wine NFTs.
However, the benefits of blockchain technology do not stop here. Blockchain not only helps in enhancing the profits of wine and spirits brands but also creates new digital experiences for their customers.
For instance, wine and spirits businesses can create digital twins for their physical bottles on the Authlink platform, making them intelligent, interactive, and traceable. Digital wine bottles create new engagement opportunities for brands and customers alike.
Let’s take a look at the benefits.
1. Enhanced brand-customer interactions and connections:
Authlink Customer Connect enables brands to directly communicate with their customers individually or in specific segments as required. This makes it easier to address customer queries, increase awareness for brand events, new bottle launches, and much more. Customer engagement and satisfaction rates are likely to stay up using this feature.
2. Detailed insights on bottle counterfeiting trends and hotspots:
Expensive wine and spirits bottles are always at the risk of getting counterfeit. Wine counterfeiting issues cause huge monetary losses to alcohol brands, and also bring down customer loyalty rates. Authlink’s digital dashboard generates detailed bottle counterfeiting insights across specific locations. This helps alcohol brands prepare themselves to tackle bottle forging and manipulation issues without wasting money and manpower.
3. Showcasing distinct brand features, information, and achievements:
Wine and spirits brands can create business accounts on Authlink Brand Panel to create digital twins for their bottles. Apart from this, they can also create detailed brand profiles that highlight their best features and achievements. Customers who scan the NFC tags of bottles at the store can access this information and gain insights into their favorite brands. In this manner, brands can promote awareness regarding their sustainable, humanitarian, and ethical efforts with minimal hassle, and consequently enhance loyalty and appeal.
4. Ease in organizing product campaigns and creating exclusive benefits:
Product campaigns and promotions help wine and spirits brands retain customer interest in the competitive market. However, they tend to be cumbersome to organize. A simple solution is to conduct such events digitally using Authlink. Since brands can directly engage with customers on the platform, it is convenient to set up promotional events as well. Customers, on the other hand, can easily participate in such campaigns using their smartphones.
5. Elevated brand awareness, loyalty, and customer appeal:
On the Authlink platform, all physical wine and spirits bottles are easily traceable and manageable across the supply chain. This further enhances business transparency and accountability, which customers appreciate. By giving customers what they expect, alcohol brands can drive up loyalty, awareness, and appeal, which are essential for survival in the competitive industry.
1. Easy authenticity verification of wine and spirits bottles:
Too many consumers in the wine and spirits industry have become victimized by fake bottles. Counterfeit bottles pose a severe threat to customer health, and can even lead to death in extreme cases. As such a situation persists, customers need to protect themselves from purchasing counterfeiters. Authlink Smart Tags enable customers to scan the labels of intelligent bottles using their smartphones and access detailed product information. This helps customers verify the authenticity of their purchases within a matter of minutes.
2. Creation of virtual wine cellar for physical bottles:
Wine bottle owners can showcase their digital wine bottles in a virtual wine cellar using Authlink Mobile Vault. Each physical bottle’s provenance records, ownership details, and other relevant data is stored along with their digital twins. By setting up a virtual wine bottle, customers can connect with their bottles better, keep track of related transactions, and also learn more about them.
3. Instant engagement opportunities with favorite brands:
Using Authlink Customer Connect, customers can get their issues with their alcohol purchases promptly resolved. Moreover, they can get their queries addressed regarding bottle storage, drink quality, and much more. Customer Connect effortlessly bridges the gaps in brand-customer interaction and rules out the need for any intermediaries. All in all, it leads to enhanced engagement between businesses and consumers.
4. Rewards and benefits by signing up for loyalty schemes:
Consumers really enjoy it when their wine and spirits purchases result in unexpected benefits and rewards. Loyalty schemes are widely used by wine and spirits brands to capture customer appeal. Using Authlink Smart Tags, consumers can easily sign up for such schemes, keep track of their loyalty points, and redeem points for rewards with ease. They can also find out more about innovative campaigns like reward-to-recycle programs while disposing of their physical bottles.
5. Convenient to learn about and purchase related products:
Brands make use of the cross-selling technique to get customers interested in less known products. Customers enjoy such schemes because it helps them enhance their product use experience, and perhaps even save money. However, cross-selling is difficult when done manually. Authlink Smart Tags resolve this issue by providing information to customers about similar products before purchase. Customers can use the information to make better purchase decisions and even win exclusive offers and discounts.
Reap the benefits
Are you a wine and spirits business owner or customer looking to explore new opportunities in the industry? Get started with the Authlink platform by scheduling a free demo here or signing up for the beta version here.