This research explores how blockchain adoption in co-opetitive green supply chains can unintentionally shift brand value and consumer trust from high-brand retailers to their contract manufacturers, impacting strategic investment decisions.
In the age of climate concern 🌍 and conscious consumers 🛍️, companies are racing to show how "green" they really are. One technology that's been making headlines is blockchain—famous for crypto but now transforming supply chains. With its transparent and tamper-proof nature, blockchain sounds perfect for boosting trust in eco-friendly products. But here’s a twist: in supply chains where companies are both partners and rivals, blockchain can shake things up in unexpected ways.
Today, we’re diving into fresh research from Chengdu University of Technology that examines how companies should approach blockchain investments when brand value spillovers and co-opetition (cooperation + competition) are at play.
Let’s unravel the blockchain drama. 🎬👇
Imagine this: a high-end brand (let’s call it Brand O) teams up with a Contract Manufacturer (CM) to make its products. They work together to manufacture goods 👨🏭 but compete in stores 🛒. The CM, while supplying Brand O, also sells similar products under its own name. Think Apple + Foxconn… but Foxconn selling its own phones too!
This setup is co-opetitive—a strange mix of teamwork and rivalry. Things get really interesting when blockchain enters the picture.
Consumers today want transparency. Are those "green" labels real or just marketing fluff? 🤨 That’s where blockchain comes in.
With blockchain:
Big players like Walmart, Nestlé, and Unilever already use blockchain to prove their eco-claims. But when blockchain shows who made what… it might spill more than just supply data. It might spill brand trust too.
Here’s the key idea: if Brand O adopts blockchain, it shines a light on the CM’s involvement. Consumers might think, “Hey, the CM is just as green!” 🌿✨
This means:
So instead of helping Brand O, blockchain might actually empower its competition. That’s the spillover effect. It’s like showing your secret recipe to a chef who wants your job. 🍳👀
The researchers created three game theory models (yep, math was involved 📈) to simulate business outcomes:
They studied how prices, trust, costs, and competition shift under each scenario. Here’s what they discovered.
Even though Brand O is the “star” with a strong brand, the CM holds the keys to the factory. That means it controls wholesale prices and makes more profit overall.
📌 Lesson: Being the quiet manufacturer can be more profitable than being the flashy brand—especially when the CM sells its own products too!
The CM benefits directly from adopting blockchain:
But for Brand O, blockchain might backfire:
📌 Lesson: Transparency isn’t always your best friend—especially when you’re trying to stay elite.
The more blockchain reveals, the more Brand O’s products seem similar to the CM’s cheaper alternatives. This leads to:
📌 Lesson: Too much transparency can erase product differentiation—especially in green products, where everyone’s claiming to be “eco.”
Since the CM gains trust, credibility, and market share with blockchain, it should act fast. Even when consumer trust is already decent, the CM still benefits.
Brand O, on the other hand, should be cautious. Blockchain only makes sense if:
📌 Lesson: Timing is everything. For CMs, blockchain is a smart first move. For brands, think twice.
Here’s where things could go:
If blockchain systems can show partial data or hide sensitive production info, brands like O might feel safer using them. Expect innovation in “selective transparency” tools.
With blockchain tracking every deal, CMs might gain more leverage in pricing, leading to more balanced negotiations in co-opetitive setups.
Blockchain can trace not just new products, but reused and recycled ones. This will become a big deal as the circular economy grows. 🌎♻️
Blockchain is changing the way we think about trust and transparency in engineering and supply chains. But trust has a funny side effect: it can be shared—even unintentionally.
This research reminds us that in complex business relationships, more data isn’t always more power. Sometimes, the silent partner gets the biggest prize. 🏆
Whether you're a startup CM or a legacy brand, one thing is clear: blockchain isn’t just a tech upgrade—it’s a strategic choice with real risks and rewards. Choose wisely. 🎯
🔗 Blockchain - A digital ledger 📒 that records transactions in a secure, tamper-proof, and transparent way—perfect for tracking where products come from. - More about this concept in the article "Flood Ready: How Mobile Apps Are Revolutionizing Disaster Preparedness (And What’s Next!) 🌧️📱".
🛠️ Contract Manufacturer (CM) - A company that makes products for another brand—kind of like the behind-the-scenes chef cooking for a famous restaurant.
🏷️ Brand Owner (Brand O) - The big-name company that designs, markets, and sells products, often relying on a CM to build them.
⚔️ Co-Opetition - A mashup of cooperation and competition 🤝⚡—when businesses work together in one part of the process (like production) but compete in another (like sales).
🌿 Green Supply Chain - A supply chain that prioritizes eco-friendly practices like reducing emissions, using sustainable materials, and minimizing waste. - More about this concept in the article "🏗️ Building a Greener Future: Exploring the Driving Forces Behind China's Low-Carbon Construction Revolution".
💡 Brand Spillover Effect - When a lesser-known brand gains consumer trust just by being associated with a more famous or trusted one—like the sidekick getting some of the superhero’s spotlight. 🦸♂️✨
📉 Consumer Skepticism (X) - How doubtful people are about whether a product is truly eco-friendly—blockchain can reduce this by proving what’s real.
📊 Stackelberg Game - A fancy name for a leader-follower business model where one company makes a move (like setting prices) and the other reacts—used here to simulate supply chain decisions.
🌐 Traceability - The ability to follow a product’s journey from factory to shelf—blockchain makes this super reliable. - More about this concept in the article "AI Ethics and Regulations: A Deep Dive into Balancing Safety, Transparency, and Innovation 📜⚖️".
💰 Wholesale Price (W) - The price a retailer pays to a manufacturer before selling the product to you—it affects how much both sides make.
Source: Lu, H.; Cheng, H. Blockchain Investment Strategies in Co-Opetitive Supply Chain: Considering Brand Spillover Effect. Sustainability 2025, 17, 4841. https://doi.org/10.3390/su17114841
