We’re back earlier than expected this week with a special mid-week deep dive into Arianee's latest whitepaper; “From A Production-Based to A Service-Based Economy: The Role of Tokenization in Decoupling Growth” published with the analytical support from Swanstant and in-depth interviews with industry leaders.

In this paper, two main strategies are identified for achieving decoupled revenues: product circulation and additional services that involve embracing circular business models like repairs, resale, rental, and remanufacturing, as well as delivering added value through existing products.

This paper provides a new framework to explore decoupling strategies and learn how leading actors from consumer industries are using tokenisation to unlock new value for their customers, increase revenues through product circulation and create new opportunities with value-added services.

Read our deep-dive below and access the full report here.

Disclaimer: Arianee is a corporate member to Future+ and the insights shared are for information purposes only. While we find it valuable, it’s important to note that this does not imply an endorsement of the products or services expressed.

📅 Upcoming event

We will be hosting a special Live Stream Mondays - Webinar on the 14th October with Future+ founder Ashumi Sanghvi, Arianee CEO and co-founder, Pierre-Nicolas Hurstel and Swanstant managing director, François Souchet, to discuss the paper.

Access it here

📚 Deep dive

For a long time, brands have primarily focused on generating profits by continuously producing and selling new products. However, this production-centric approach has put immense pressure on the world's ecosystem. Major brands have been depleting natural resources, accelerating climate change, and creating waste that often ends up burned or in landfills.

This report introduces a fresh and innovative concept: breaking the link between revenue growth and increased production. This idea has the potential to significantly change the business landscape.

Let's explore four key takeaways from the paper and examine their implications for future business models.

1 - Growing revenue through product circulation

There are substantial opportunities for market expansion and customer satisfaction through models like repair, resale, and remanufacturing. These models can yield significant profit margins. However, if they are simply added on to a traditional production-based business model, their economic value might diminish. Properly integrating these models allows brands to extend their customer interactions beyond the initial sale, maintaining engagement well after the purchase. This shift requires a focus on preserving the value of products and viewing them as assets that can continue to generate income rather than as single-transaction items.

Why it matters: The benefits of these models extend beyond financial performance. They can generate multiple streams of revenue from a single product sale, which not only improves financial outcomes but also supports environmental sustainability. By reducing the need for constant new production, these models help slow environmental degradation. Additionally, by focusing on customer satisfaction, they encourage the production of higher-quality, longer-lasting products, setting a new standard for the industry.

2 - Developing new revenue streams through value-added services

Offering value-added services such as maintenance contracts, extended warranties, rentals, upgrades, performance enhancements, and virtual goods can significantly enhance the customer experience. These services provide assurance by ensuring product upkeep and repair, extending the life of a product. Rentals and upgrades offer flexibility and access to the latest innovations without the need for full purchase, while performance enhancements improve product functionality and user enjoyment. Virtual goods, especially in digital and gaming environments, introduce new levels of engagement and excitement, adding another layer to product use. These services not only increase customer satisfaction but also foster loyalty by adding value beyond the initial purchase.

Why it matters: Unlike models focused on product circulation, value-added services concentrate on building lasting relationships through customer satisfaction and trust. Enhancements like those mentioned above not only improve the product experience but also provide customers with confidence in their purchases, encouraging repeat business. Additionally, incorporating virtual goods opens up new possibilities for engagement, which will be discussed further in the next section.

3 - Tokenisation: changing how products are managed

The ability to track products before and after they are sold has become essential. By creating 'digital passports' for products that serve as comprehensive records, brands can provide full transparency and assure customers of authenticity through unique cryptographic signatures. Tokenisation also improves relationships between customers, making it easier to trade or resell items and reduces the risk of fraud. This technology opens up new opportunities in secondary markets, which have historically been plagued by scams and mistrust.

Why it matters: Tokenisation and blockchain technology simplify the alignment of interests among brands, regulators, and customers. Moreover, tokenisation enhances security and privacy by making intercepted data useless to unauthorised parties, thereby providing a new level of protection.

4 - The Arianee Protocol

Arianee is leveraging technology to strengthen the bond between brands and customers through its unique protocol. This protocol consists of six open-source smart contracts designed to facilitate the creation of advanced, enriched, and adaptable tokens. These tokens are particularly suited for supporting circularity in business. The key features include minting, NFT transfer, proof of ownership, on-chain event time-stamping, NFT history, and messaging to NFT. The protocol comes with APIs accessible to brands, developers, and members of the Arianee community, ensuring a wide range of applications and adaptability.

Why it matters: The Arianee Protocol empowers brands by ensuring user security and enhancing the digital experience, providing companies with a comprehensive toolset. With APIs that allow for live updates on ownership, personalised brand interactions, and new types of data control, brands can confidently navigate the digital landscape, all thanks to Arianee's open-source standards.

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Disclaimer- Information in this newsletter only for the purpose of sharing knowledge, news and insights.