Views: 0 Author: Site Editor Publish Time: 28-03-2022 Origin: Site
RFID is not exactly a new technology. In fact, the origins of RFID can be traced back to World War II, when the Air Force needed a way to distinguish between friendly and enemy aircraft.
For decades, RFID has proven useful for a variety of industries. As retailers move to omnichannel sales, this technology has made a bigger difference.
Then, the COVID-19 outbreak broke out. Many retailers are forced to close temporarily or permanently, and the requirement of social distancing complicates the in-store experience. Now RFID has made advances and expanded in some application areas and is ready to help retailers usher in a new era of customer shopping experience.
According to McKinsey, this new era has the potential to boost the economy and boost growth while reducing the cost of inventory labor by 10 to 15 percent.
As the industry adapts to new customer expectations and more demand for omnichannel experiences, retailers have the opportunity to adopt this legacy technology and use it in innovative ways.
RFID requires four elements to work together: RFID tags, readers and antennas, support software, and testing and validation. These element areas have not changed much in recent years, as the underlying technology behind the system has remained stable.
However, some recent developments have made RFID more attractive to businesses. First, according to McKinsey, RFID performance has improved significantly over the past decade, with read accuracy tripling and read ranges fivefold.
Another big change is cost. Over the past decade, the average cost of RFID tags has fallen by 80 percent, while the average cost of RFID readers has fallen by nearly 50 percent.
These enhanced features mean businesses can operate with fewer labels, and lower prices mean the technology is more affordable.
As retailers rely on a more connected and mobile infrastructure, RFID has multiple advantages in terms of operations. As businesses move to an omnichannel model, inventory can be a major challenge. This is also one of the most prominent applications of RFID: helping to track inventory.
This can also help businesses identify consumer trends and preferences so that businesses can adjust production as needed.
RFID can also help streamline store operations through application cases such as self-checkout, making checkout faster and more accurate to reduce man-hours and error rates. It also allows shoppers to scan items with their smartphones themselves and pay immediately. With RFID, returns are also made easier, and RFID tags eliminate potential inventory tracking issues and errors in the reverse supply chain.
Currently, inventory tracking and operations are the most widely used uses of RFID in the retail industry. However, as customer expectations evolve, other emerging use cases have emerged for the technology.
One of them is one of the most commonly used parts that affect the store: the fitting room. RFID allows smart mirrors to read labels on clothes, prompting suggestions for relevant styles and accessories. It can also collect data about customer interests and try-ons, helping to notify orders and other actions.
However, this is not the only customized feature that RFID can offer in the retail industry. When certain goods are connected via technology, the technology can provide unique referral capabilities that enable customers to browse in a more engaging, personalized way. These uses are still emerging, but such contactless experiences are becoming increasingly popular.
With the right RFID tools, retailers can stay one step ahead and serve their customers.