Our Ecosystem Detailed: Business Model

Episode 1 of an on-going series of articles

Tael (WABI)
Dec 28, 2018 · 6 min read
Image for post
Image for post
Techrock & Tael: two sides of the same coin.

A deeper look into the workings of Tael & Techrock.

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.

Image for post
Image for post

The company Techrock (formerly Walimai).

Image for post
Image for post
The Techrock marketplace on China’s WeChat application.

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.

Image for post
Image for post
Image for post
Image for post
Tael taps into companies’ marketing budgets as opposed to smaller IT budgets many blockchain projects compete for.

The loyalty point Tael (formerly WaBi)

Image for post
Image for post
Note: Amount of Tael received here is for illustration purposes only. China consumers receive 石积分 (shijifen), 1:1 equivalent to Tael. This system is explained in our second article.

Consumers can redeem Taels in the Techrock and partner ecosystem, but cannot directly sell their Taels on exchanges.

We will cover this aspect more thoroughly in a future article.

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.

Image for post
Image for post

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.

Image for post
Image for post
The act of gaining and spending Tael has been made as stimulating and easy as possible.

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.

Image for post
Image for post

Explanation of an example usage scenario, in layman’s terms:

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.

Image for post
Image for post
This graphic provides a brief example of organic Tael usage. (click to enlarge)

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.

Image for post
Image for post

This is episode one in a series of articles regarding the ecosystem:

Tael | Protecting Products That Need It Most
Telegram | Twitter | Website

Tael (WABI)

Written by

WABI is the loyalty point token in the Taeltech ecosystem, securing authenticity of consumer goods and enhancing brand-consumer relationships: www.taelpay.com

Tael (WABI)

Written by

WABI is the loyalty point token in the Taeltech ecosystem, securing authenticity of consumer goods and enhancing brand-consumer relationships: www.taelpay.com

Welcome to a place where words matter. On Medium, smart voices and original ideas take center stage - with no ads in sight. Watch
Follow all the topics you care about, and we’ll deliver the best stories for you to your homepage and inbox. Explore
Get unlimited access to the best stories on Medium — and support writers while you’re at it. Just $5/month. Upgrade

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store