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RFID Enters Early Majority Phase in Retail
Findings from a European study, headed by the University of Parma, indicate that RFID deployments for fashion and apparel companies have passed the early adoption stage and are now poised to expand to omnichannel fulfillment.
Jan 04, 2019—
RFID use for fashion and apparel retail in Europe has reached the early majority phase of adoption, according to a decade-long study led by Italy's University of Parma. The study, titled "RFID Barometer in Retail," examined approximately 160 printed accounts of RFID deployments, ranging from 2001 to 2018. The report finds that in retail, the days of early adoption are past.
Companies installing RFID systems are now less likely to be technology innovators, the report indicates, and are instead following the lead of early adopters. Whether deployments are just starting or are permanently installed, the study finds the focus now increasingly centered around out-of-stocks, inventory accuracy, process automation, stock visibility and replenishment from the back room, while omnichannel sales are emerging as a new use case. Retailers that aren't already testing or adopting RFID risk falling into the "laggards" category, and potentially falling behind their competitors, according to Antonio Rizzi, the study's co-author and a professor at the University of Parma's Department of Engineering and Architecture.
The study offered a review of RFID deployments in fashion and apparel in literature and publications, including articles and case studies published by RFID Journal. The group studied the experiences of companies in RFID pilots and deployments, and also considered the practical implications for the fashion and apparel retailer market throughout Europe. Rizzi presented the study's results at this year's RFID Journal LIVE! Europe 2018 conference and exhibition, held in November. "The research [focuses], on one hand, on monitoring RFID adoption status in the industry, and on the other hand, how use cases are evolving over time," Rizzi says.
The first RFID deployments took place in the United States in the 2000s for streamlining logistics, eventually evolving to the item-level tracking of goods at stores from back rooms to shop floors. Joint university research with the University of Wuerzburg began in 2014, which involved collecting data about deployments back to 2001. "The goal of our study was to build up a comprehensive, up-to-date and well-structured taxonomy for use cases of RFID in fashion retail," Rizzi says, "based on extensive literature review." Since then, the continued deployments were evaluated and analyzed up to this year. The research team also created a database describing projects, their status, proof-of-concepts and full deployments.
Sources for the study, in addition to RFID Journal, included trade publications, newspapers, websites, scientific papers and reports, and conference presentations. The group studied 149 deployments at a total of 97 companies and 23,400 stores that were carried out between 2001 and 2018, including those at Decathlon, Walmart, Gucci, Jack Wills, JCPenney, Diesel and Miroglio Fashion. The deployments also included 89 systems integrators, as well as reader and tag vendors. More than half of the deployments studied were based in Europe, with the rest located in the United States and beyond.
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