May 04, 2022Ed. Note: This article was previously posted at IoP Journal.
Brazilian company Alpargatas, the brand owner of slipper manufacturer Havaianas, whose products are available at more than 300,000 retail outlets worldwide, is looking to leverage radio frequency identification and intelligent automation to achieve strategic gains in its business. "We are launching a solution in the United States, throughout the country," the company indicated in an official statement, "with the objective of carrying out the global implementation in a next step."
Seeonic's patented RetailConnect technology platform provided Alpargatas with the ability to achieve automatic vendor-managed inventory via product scanning, automated inventory counts and Google ads that direct online shoppers to nearby physical retailers stocked with desired products. Alpargatas aims to leverage RetailConnect to unlock other strategic business objectives as well, including accelerating growth and optimizing commissions.
Alpargatas, the brand owner of slipper manufacturer Havaianas, is looking to leverage RFID and intelligent automation to achieve strategic gains in its business.
Capturing New Customers
With the RFID system in place, Havaianas' sales representatives can now focus on capturing new customers and larger accounts, thereby increasing the company's market share. "We want to lead the industry by offering retailers the Havaianas RetailConnect advantage," the company indicated in the statement, "with displays that are always full and never overcrowded, data-driven product curation, and Google's search integration that takes online shoppers to brick-and-mortar stores."
RetailConnect enables a small corporate team to do more business remotely, the company explains, increasing sales at a lower cost. RetailConnect displays placed in stores work as remote, real-time demand for consumers. This could allow the Brazilian market to run a high-efficiency direct distribution model, reducing dependence on large third-party distribution organizations, while increasing profit margins.
Havaianas began working with Seeonic in 2020, with an RFID solution utilizing ultra-low-power, battery-operated cellular technology that did not require a retail customer's ethernet or Wi-Fi network. This was crucial for mass scalability, as it would be difficult for retailers to manage thousands of Ethernet cables or Wi-Fi passwords throughout the nation. Seeonic, with its RetailConnect cloud platform, also offered enough flexibility to allow the platform to be integrated with the SAP system used by Havaianas.
With RetailConnect linked to local Google ads, the slipper company explains, the solution provides an important differentiating resource for the firm, and an attractive feature to acquire new and larger retail customers that will not need to perform any integration tasks. Havaianas North America forged a relationship with Seeonic and the University of Minnesota to co-develop several return-on-investment models.
Monitoring Product Displays
Havaianas' RFID project includes a team composed of management, sales, marketing, operations and IT, all of whom worked together to roll out the program to retailers in the field, as well as market it at national fairs. The company conducted in-person seminars with its field sales force, training them to use RetailConnect. Havaianas is a finalist in this year's RFID Journal Awards, the winners of which will be announced at RFID Journal LIVE! 2022, to be held on May 17-19 in Mandalay Bay, Las Vegas (see Finalists Announced for 17th Annual RFID Journal Awards).
As Havaianas products sit on displays, Seeonic's technology is fixed, and the RFID tags required substantial RF testing to ensure 100 percent read rates. Seeonic managed the selection of RFID inlays, antennas and radio parameters to achieve this goal. Havaianas has thousands of stock-keeping units, and it was imperative to select test products containing the most problematic materials for RFID, such as rubber with a higher carbon content or metal trim. Tests were performed on real displays, the company reports.
"We were able to achieve 100 percent reliable read rates in the lab," a Seeonic spokesperson recalled, "and we independently verified the same through Havaianas' sales representatives in field deployments in real retail stores." The field test, carried out in California during 2020 and 2021, determined that the technology worked very well, without the need for field technicians to activate it, and achieved 100 read rates, according to the corporate and sales teams. As such, the company recorded a 135 percent boost in product sales, on average.
There are other benefits related to the automation of RetailConnect, which contrasts with the company's fulfillment in the traditional sales model. In addition to the 135 percent growth in market share, Havaianas achieved an increase in the performance of sales representatives. For retailers that sell flip-flops, the company reports, showroom displays are never sold out, and Google searches can direct online shoppers to physical stores. Brand representatives, meanwhile, need to perform less work and less travel to achieve their goals.
Moving From Pilot to Deployment
Seeonic's SightWare family of RFID readers was deployed in conjunction with its Boresight family of RFID antennas. Avery Dennison Smartrac's AD310 inlay was adopted with the print-encode configuration at Havaianas distribution facilities, with no need for hardware customization. RFID tag printing was customized, with custom antenna tuning as well as software interfaces.
Core technology was preinstalled on standard retail accessories prior to their shipment to retail stores. Upon arrival, store personnel simply put the accessories in place, per usual. No plug-ins or network technicians were needed to interface with each store's network. With the system, a retailer can place an accessory wherever it wants and make it work effortlessly.
RetailConnect is the primary software platform. It manages the entire SightWare network of deployed devices, handles all item-level data processing and can be integrated with Havaianas' in-house SAP business-management and distribution systems. Seeonic created special mobile apps that allow sales reps to instantly visualize field service needs and act immediately to replenish locations that are out of stock, or that might benefit from an update to their product curation.
The first two pilot phases took approximately one year to complete development and testing. The pilot stores remain online, and Havaianas has signed a three-year contract to put 400 stores in operation, with launches scheduled throughout 2022. Once the initial U.S. production release is complete, more locations may be added. Applications in Brazil and throughout the rest of the world will also be considered. Due to the nature of RetailConnect equipment, retailers do not require training or other knowledge to make use of the solution—all they need is to physically wheel the retail fixture wherever they want within their stores.
Key Takeaways:
- By monitoring slipper displays via RFID, Havaianas has increased its product sales.
- With the RFID system, sales reps can focus on capturing new customers and larger accounts, thereby increasing market share.
- The platform allows Alpargatas to achieve automatic vendor-managed inventory via product scanning, automated inventory counts and Google ads.
Exhibitors at RFID Journal LIVE! 2022 will offer solutions for tagging product displays. To learn more, visit the event's website.
