Ten years ago RFID was going to set the retail world on fire, and then nothing happened – leaving a number of myths about the technology to spread.

RFID is no longer just a buzz topic. Research from IDTechEx has found the use of RFID tags is exploding, with global retailers using more than a billion more tags in 2014. Considering 47% of items received by apparel retailers in the US are RFID tagged this number is not really surprising. But, with 57% of our colleagues in the US using or currently implementing RFID, many of the myths that seem to be lingering here in the UK have now been debunked.

So what were the biggest myths of RFID in apparel retail, and why is RFID now being adopted more widely?

Myth 1: RFID is unnecessary; I can do my stock management using barcodes

Apparel has some specific challenges that set it apart from other retail categories. Variation doesn’t just occur between products, each item sold comes in a range of colours and sizes, and if the exact one the customer wants is unavailable when they are shopping in store – they may leave without making a purchase.

While it is possible to count stock and ensure perfect availability using barcodes, the labour costs involved mean it is unfeasible to do on a regular basis. The speed and ease of counting stock with RFID technology mean stocktakes can be a weekly or even daily occurrence. Retailers can get incredibly close to perfect with the improved productivity through quick and accurate counting with RFID.

Apparel retailers are typically seeing 80% to 90% time savings using RFID for stock management.

Myth 2: RFID tags are expensive

Over the past 10 years the price of a tag has fell by 75%. This has been driven by the development and widespread industry acceptance of a single standard for tags – GS1 EPC-enabled.

Tags now cost as little as 6p, representing a small percentage of the retail value of a garment.

Tags make up less than 25% of the total cost of a typical RFID installation – and most ROI studies indicate relative insensitivity to higher or lower tag costs.

Myth 3: Using RFID will compromise consumer privacy

The perception of RFID as ‘spy tags’ is drastically misplaced. A GS1 EPC-enabled tag carries no sensitive consumer or product data. It simply carries the unique identifier for that product. This number only has an application when associated to a reference in a database.

Retailers working with RFID have agreed to strict privacy guidelines and support GS1 privacy impact assessment protocols.

Under EU regulation consumers have the right to have all tags ‘killed’ or removed at the point-of-sale.

Myth 4: RFID as a technology just doesn’t really work

Textiles are very RFID-friendly materials. Apparel retailers have had very little problems when implementing RFID solutions as the general read environments are not overly harsh or difficult.

Even in those environments that the technology has had problems in the past, developments in RFID technology continue to drive even better performance.

Today, RFID is a stable technology. It’s why so many top retailers are now deploying it as every-day technology, not just trials. Retailers are seeing extremely high levels of reliability – with 99%-plus read-rates.

Myth 5: As a multichannel retailer I always know where stock is available, in all my physical locations

One of the clear-cut advantages of RFID is the identification of each instance of a product. In multichannel retailing, where consumer orders are fulfilled as individual orders through the supply chain, total visibility of each product instance is a must.

Without the real-time, always-on visibility that RFID gives, it’s difficult to know exactly where stock is available across all channels with absolute certainty.

As retailers globally are adapting their business models to cater for the modern, connected global customer, RFID is building the platform for omnichannel retail. Those that have already started the adoption process are discovering benefits evidenced by hard facts, and at the same time unravelling the previously held negative connotations.

Looking to find out more about RFID? GS1 UK are holding the first training course to help apparel retailers find out what they need to know about implementing RFID in their business. Their expert team have more than 100 years of experience working with RFID, and they can help you understand the technology and how it can add value to your business.

 

  • Andy Robson is Supply Chain Solutions manager at GS1 UK – a community of more than 28,000 members working in retail, food service, healthcare and more. As one of 111 independent, not-for-profit GS1 organisations across 150 countries worldwide, GS1 helps everyone involved in making, moving and trading goods to automate and standardise their supply chain processes using the common language of business.Find out more here.