RFID Reader Manufacturer Sees Sales Soar

UHF RFID reader inventories from a major supplier have fallen rapidly due to demand from a large Brazilian retailer.
Published: August 7, 2019

A large provider of radio frequency identification (RFID) equipment has seen its UHF reader stocks nearly depleted in the Brazilian market, thanks to the demand from a large Brazilian retailer. Both companies have asked not to be identified, but sales expectations were exceeded above the expected average.

This retail company has ordered that all of its suppliers deliver RFID-tagged products to facilitate their internal inventory controls, among other initiatives. Due to the retailer’s size, this decision has warmed the market far more than anticipated demand and, as a result, has quickly depleted the reader stocks of a major RFID equipment supplier. The supplier was not expecting such high sales at this time in Brazil, due to trends in recent years.

Unexpected demand has reduced UHF RFID reader inventories.

The atypical scenario has led to a major spike in sales of RFID solutions in Brazil, despite a current economic crisis in that nation—and even thanks to it—as many businesses have come to realize that the technology would be a great ally. RFID enables users to reduce costs and gain efficiency, with a short time to a return on their investment.

Following the retailer’s decision, its suppliers began a major race for RFID solutions, including tags, readers and printers, which took manufacturers and systems integrators by surprise. As the market was on the verge of stagnation due to the economic crisis, with doubts rising regarding the approval of pension reform legislation, sales were not expected to expand as they did.

Now, with the approval of first- and second-round pension reform by Brazilian Congress continuing, expectations about the country’s economy are improving and the business potential is expanding to other companies, according to the expectations of RFID entrepreneurs. The positive signaling of Brazil is anticipated to favor a new wave of economic growth, as several economists in that country—even the most conservative and least liberal—have observed. Many practitioners agree that business will expand in the coming months if the Congress continues its reform process, which should further increase the demand for business solutions such as RFID.