The new era of RFID applications in the retail industry
RFID is not entirely a new technology. In fact, the origin of RFID can be traced back to World War II, when the Air Force needed a way to distinguish friendly aircraft from enemy aircraft.
For decades, RFID has proven useful in various industries. As retailers switch to omni-channel sales, this technology has played a bigger role.
source：pixabay
Then, the COVID-19 epidemic broke out. Many retailers are forced to temporarily or permanently close business, and the requirement of social isolation also complicates the in-store experience. Now RFID has made progress and expanded in some application areas, and is ready to help retailers create a new era of customer shopping experience.
According to McKinsey, this new era has the potential to boost the economy and promote growth while reducing inventory labor costs by 10% to 15%.
As the industry adapts to new customer expectations and more demand for omnichannel experiences, retailers have the opportunity to adopt this old technology and use it in innovative ways.
According to McKinsey, this new era has the potential to boost the economy and promote growth while reducing inventory labor costs by 10% to 15%.
As the industry adapts to new customer expectations and more demand for omnichannel experiences, retailers have the opportunity to adopt this old technology and use it in innovative ways.
The latest developments in RFID bring opportunities
RFID requires four elements to work together: RFID tags, readers and antennas, supporting software, and testing and verification. In recent years, these element fields have not changed much because the basic technology behind the system has remained stable.
However, some recent developments have made RFID more attractive to enterprises. First of all, according to McKinsey, in the past ten years, RFID performance has been significantly improved, the reading accuracy has doubled, and the reading range has also increased by five times.
Another major change is cost. In the past ten years, the average cost of RFID tags has dropped by 80%, while the average cost of RFID readers has dropped by nearly 50%.
These enhanced features mean that companies can operate with fewer labels, and the drop in price means that the technology is more economical.
However, some recent developments have made RFID more attractive to enterprises. First of all, according to McKinsey, in the past ten years, RFID performance has been significantly improved, the reading accuracy has doubled, and the reading range has also increased by five times.
Another major change is cost. In the past ten years, the average cost of RFID tags has dropped by 80%, while the average cost of RFID readers has dropped by nearly 50%.
These enhanced features mean that companies can operate with fewer labels, and the drop in price means that the technology is more economical.
How RFID is used in operations
As retailers rely on a more interconnected and mobile infrastructure, RFID has multiple advantages in operations. As companies shift to an omni-channel model, inventory may be a major challenge. This is also one of the most prominent applications of RFID: to help track inventory.
This can also help companies identify consumer trends and preferences so that companies can adjust production as needed.
RFID can also help simplify store operations through application cases such as self-checkout, making checkout faster and more accurate, so as to reduce working hours and error rates. It also allows shoppers to scan their products with their smartphones and pay immediately. With RFID, returns become easier. RFID tags eliminate potential inventory tracking problems and errors in the reverse supply chain.
This can also help companies identify consumer trends and preferences so that companies can adjust production as needed.
RFID can also help simplify store operations through application cases such as self-checkout, making checkout faster and more accurate, so as to reduce working hours and error rates. It also allows shoppers to scan their products with their smartphones and pay immediately. With RFID, returns become easier. RFID tags eliminate potential inventory tracking problems and errors in the reverse supply chain.
How RFID is used for customer experience
At present, inventory tracking and operations are the most extensive use of RFID in the retail industry. However, as customer expectations evolve, other emerging use cases for this technology have emerged.
One of them will affect one of the most commonly used parts of the store: the fitting room. RFID allows smart mirrors to read the tags on clothes, prompting suggestions for related styles and accessories. It can also collect data about customer interest and try-on, help inform orders and other operations.
However, this is not the only customization feature that RFID can provide in the retail industry. When certain commodities are interconnected via technology, the technology can provide a unique recommendation function, enabling customers to browse in a more participatory and personalized way. These uses are still emerging, but such contactless experiences are becoming more and more popular.
With the right RFID tools, retailers can be one step ahead and serve customers.
One of them will affect one of the most commonly used parts of the store: the fitting room. RFID allows smart mirrors to read the tags on clothes, prompting suggestions for related styles and accessories. It can also collect data about customer interest and try-on, help inform orders and other operations.
However, this is not the only customization feature that RFID can provide in the retail industry. When certain commodities are interconnected via technology, the technology can provide a unique recommendation function, enabling customers to browse in a more participatory and personalized way. These uses are still emerging, but such contactless experiences are becoming more and more popular.
With the right RFID tools, retailers can be one step ahead and serve customers.
