Can RFID Allow The Physical Retail Industry To Pass The "Cold Winter"?

A set of data from the Business Economics Institute of Beijing Technology and Business University showed that from 2012 to 2015, 138 stores closed, 262 supermarkets closed, and 6209 sports brand stores closed. These closed department stores and shopping centers were a microcosm of the closing trend of China's physical commodity trading market.

Some media pointed out that

It is suffering from the test of "cold winter".

The "solid winter" physical retail industry

2016, and

Compared with the red fire, the physical retail industry has not been better. The shopping model that has been highly praised has never been able to keep pace with the development.

Recently, Shanghai's "Pacific Department Store Huaihai" announced that it would pull out of the store at the end of the year.

The shares of Carrefour's joint venture in six cities in China were sold by Chinese shareholders, and the former "meat and potatoes" became "hot potato".

Before Marsha closed all 10 shops in the mainland of China, the British "old brand" Marsha general gave up the Chinese market and drew a sigh from the industry.

People are also wondering about the reasons why large retail enterprises will run difficulties.

Even pessimists believe that with the gradual tightening of e-commerce, physical commerce has gone to the end of the road.

Besides the change of people's shopping mode, the reasons leading to the decline of physical retailing include: identical goods, mismatch of supply and demand, high operation cost, extensive management and so on.

Facing the market force, retail enterprises are also trying to change, attempting to spend the long winter through technology, management and overweight online.

Among them, RFID technology, which had been neglected for a while, began to glow and heat.

RFID retail applications in the market

With the deserted retail market, the application of RFID technology in the retail industry began to break out.

According to a research data released by Technavio Research, by the year 2019, the retail market RFID application market is expected to reach US $3 billion 910 million, an increase of US $3 billion compared with 2014, and the global RFID market growth rate of such applications will reach 40% in the forecast period.

The GS1 standard group conducted a survey on the use of RFID in 2014. Over 57% of the retailers surveyed indicated that they were using RFID Technology (RFID), and another 19.3% of them planned to adopt the system in the next 12 months.

In addition, 10.5% of the operators plan to use it in 13-24 months.

Why is it that retail brands are willing to promote the use of RFID technology? Mr. Alien, global product manager of the Alien, pointed out that there are three main reasons for this: first, RFID can help some enterprises to reduce inventories; the two is that RFID can improve the accuracy of goods inventory; and the other is that RFID can bring more efficient business results.

Yang Hua, a Limited by Share Ltd in the United States, has pointed out that the most important needs of retail enterprises include three parts: profits, sales and business intelligence.

The advantages of RFID technology have a strong complementarity to the retail industry characteristics. Retailers can use RFID technology to control information from various aspects such as purchase, storage, packaging, loading and unloading, pportation, distribution and sale to services. The retail industry has met the convenience brought by the massive application of RFID, and the two areas have achieved complementary advantages and achieved mutual promotion in development.

Mr. Chen, head of China International Internet of things exposition, said that the outbreak of RFID in the retail market, in addition to the accumulation of technology in the retail sector, the pformation of the retail mode under the wave of intelligent development has also provided an opportunity for RFID to break out.

In other fields, such as logistics and industry, it is also facing the reform of intellectualization. The era has given RFID an opportunity to be missed. This is the opportune moment for RFID enterprises to seize.

When combing the 2016RFID retail application case, the author notes that RFID development has the following characteristics: the application of RFID technology in the retail industry is more diversified, and the whole channel has become an important target of RFID application for retail enterprises.

In 2016, the RFID retail application was more widely used, in addition to the size of the application.

Besides, clothing, such as food, automobiles, glasses, pets, luxury goods, sporting goods and other retail businesses have entered the RFID application scope, and RFID retail has wider spans.

From this we can see that RFID retailing is no longer a technology that can only be played by giants. More retailers are beginning to notice the benefits of RFID technology, and the RFID application circle is increasing.

With the development of mobile Internet, e-commerce, O2O, flash shop and other sales modes and measures are the means that retail enterprises need to borrow. Retail channels are the main direction for retail enterprises to develop vigorously. In this case, fast logistics, accurate inventory and visible supply chain system have become the factors of their success. In these respects, RFID technology has unique advantages, which can effectively guarantee the efficient operation of the chain of retail enterprises.

For example, in January 2016, the United States ShopWithMe joint Impinj and interactive display technology supplier InMotion announced that RAIN RFID technology will be used to build the world's first intelligent retail store.

All the products and stores will use this radio frequency inlay technology to create a truly interactive shopping experience.

The application of RFID in the whole retail business is more perfect and deepened in depth.

Technology tackling of retail pain point

Mr. Tang Jun, President of Shenzhen information technology Limited by Share Ltd, said that the core competitiveness of the retail industry is low cost and efficient logistics supply chain system.

At present, the problems of high inventory cost, low service efficiency and low accuracy of information have caused great distress to retailers.

The application of RFID technology can effectively solve the "pain point" of the retail industry.

RFID technology relies on its unique identification methods and technical features to enable retailers to track commodity dynamics more easily and automatically, and achieve automatic management of goods.

Moreover, RFID technology also provides advanced and convenient data acquisition methods for retail industry, convenient customer pactions, efficient operation mode, and quick and insightful decision making means.

Through the application of RFID technology, retail inventory, return, burglar and cash collection are gradually realizing the digital management of logistics.

Moreover, each RFID tag has the only ID number in the world, UID, which does not need to read barcode labels for each item. It can greatly improve efficiency and save manpower costs. Moreover, the anti-theft function built on RFID technology can reduce the loss rate and reduce the cost of material.

Retailers can use RFID as an information carrier, relying on technologies such as network communication, system integration and database application to establish an information platform to achieve the record of every link of the whole industry chain from production, processing, storage, pportation, and terminal consumption.

Jean-MarcLieby, head of Decathlon RFID, said: "about 85% of Decathlon's products have been used RFID tags. It improves the efficiency of shopping malls by 5 times (for RFID labeling products), improves the shopping mall's full rate of 5%, and reduces the loss rate of 9%.

5% of the sales growth is attributable to the use of the RFID inventory tracking system.

Compared with the slowdown in the performance of these competitors, Spain's fast fashion ZARA has made its competitors H&M and UNIQLO feel stressed. The Inditex group's parent company's Inditex performance in the first half of 2016 has recorded strong growth, and its sales volume has risen by 11.1% to 10 billion 470 million euros and about 77 billion 830 million people's currency, and its profit has increased 7.5% to 1 billion 260 million euro or about 9 billion 360 million yuan.

Pablo Isla Isla, chairman and chief executive officer of Inditex SA Indo Textile Group, said at the post earnings conference that the success of the group's development is still attributable to recent reforms, including upgrading of the Spanish headquarters with multiple functions including design, production and distribution, as well as the application of Zara to RFID technology. The latter allows the flagship brand to contribute to 2/3 sales to further control inventory and adjust supply according to demand changes.

Of course, in order to achieve the desired effect, RFID projects need mutual participation between RFID hardware suppliers, software providers, system integrators and retail enterprises.

In China and even the world's largest China International Internet of things exposition, every year, enterprises from the middle and lower reaches of the RFID industry are actively involved. According to the organizers, 453 enterprises have successfully participated in the exhibition in 2016, covering almost all RFID manufacturers, so this is the best place for technology, products and applications to find the ideal customers.

It is reported that the ninth 2017 China International Internet of things exposition "spring exhibition" will be held on March 29, 2017 -30 at the Suzhou International Expo Center, and the "IOTE Summer Exhibition" will be held in Shenzhen Convention and Exhibition Center on August 16, 2017 -18.

A complete industrial chain of the Internet of things will be displayed, covering the Internet of things perception layer, network layer and application layer. It will involve RFID (radio frequency identification) technology, sensor network technology, short distance communication technology, financial consumer mobile payment technology, middleware precise control technology, big data processing, cloud computing, real-time location technology and other IOT technologies in the pportation, industry, smart grid, smart home, logistics, anti-counterfeiting, personnel, vehicles, military, asset management, clothing, books, smart city, environmental monitoring and other comprehensive solutions and successful applications.

For more information, please note:

Booth reservation - Chen Jianghan

TEL: 0755-86227055

Mobile:18676385933

Registration of participants: Fu Fengfang

TEL: 0755-26984603

Mobile:18565862893

Visiting exhibition -- Jiang Lin

TEL: 0755-86227155

Mobile:15919442599

Media cooperation -- Lai Haixin

TEL: 0755-26556003

Mobile:15118023379

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