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What Else Can You Do With an RFID Fashion Label?
Don't use RFID just for logistics and inventory management. Here are a few ways in which retailers can employ the technology to provide new services to their customers.
Jul 21, 2013—
At present, radio frequency identification labels are predominantly used for managing inventory on a retailer's sales floor. After goods are purchased, their RFID labels often experience a sudden end of life—either because the point-of-sale RFID device performs the Electronic Product Code (EPC) kill command, or because the customer tears the label off and throws it into a waste bin.
The good news is that at this point, the RFID label has already delivered a substantial return of investment to the retailer, by reducing shrinkage by as much as 50 percent and improving shelf inventory accuracy by 65 percent to more than 90 percent, thereby boosting sales by as much as up to 14 percent, due to product availability. The use of RFID can also enable omni-channel retailing, by providing accurate in-store inventory information, whereby the store functions like a distribution center, enabling customers to place an order via the Internet, and then pick up the ordered merchandise at the nearest brick-and-mortar shop.
The reason for destroying the RFID label shortly after the point of sale is perceived to have its origin in consumer privacy concerns. However, even today, many customers consciously decide to leave the labels on the garments they buy, at least until they arrive at home and are certain they will keep those items.
So, what else could we do with an RFID fashion label?
There are several different categories of consumers, including teenagers, working mothers, students, businessmen and more. Consumers can even be a mix of several types. Most are frequent users of smartphones and tablets, and utilize the Internet as an information source and an instant cure for almost everything. For them, the act of tapping an RFID label on an in-store terminal is no big deal.
What's more, installing an RFID consumer interaction application does not need to be a large investment, nor is it rocket science. There are a number of small ultrahigh-frequency (UHF) readers available that simply plug into a tablet's USB or earphone connection. The fact that only short communication distances are required brings the cost of hardware down to a very low level.
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