How RFID and Fashion Retail Come Together to Create a Winning Combo

Retail Business Review | Monday, November 22, 2021

RFID tags also make it easier to implement store fulfillment, frequently the most profitable choice.

FREMONT, CA:  While RFID is employed in various industries, including construction, engineering, and chemical manufacturing, it found its perfect match in the fashion retail market. Apparel merchants have been utilizing RFID technology for years. As other retail sectors such as beauty or food begin to investigate the possibilities of item-level tagging, they will look to fashion retail for guidance.

Consider how fashion retail found the ideal combination with RFID:

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RFID: Real-time data on an item-by-item basis

Today's modern buyer, who is constantly connected, expects immediate information about article availability at all times, as well as a consistently excellent buying experience regardless of whether they shop online or in a brick-and-mortar store. These expectations, combined with the fact that fashion merchants must manage many collections per year and at least as many marketing campaigns create a slew of obstacles. In various colors, styles, and sizes, enormous volumes of merchandise must be transferred in ever-shorter cycles across the supply chain. This entails unique requirements for retail operations, technologies, and employees:

  • Being able to deliver information to customers at all times requires that the exact positions of all articles at the item level are known at all times.
  • Processes those are efficient in the store. i.e., rapid receipt of goods, continuous inventory, and notifications when items are no longer available on the sales floor but are still available in the backroom.
  • Being completely customer-focused. Keeping our promise to provide accurate information on the availability of specific articles at any time.

RFID is a technology that enables the visibility of items and much more

Numerous fashion retailers have already recognized the benefits of RFID-based inventory management: knowing the precise location of each item at all times is critical for efficient store management and omnichannel commerce. Retailers who take the initial step of placing simple RFID labeling on items often realize further benefits such as real-time analysis of item-level data or decreased labor expenses in stores. Since RFID-based solutions are highly scalable, significantly easier to adopt than ever before, and increasingly viewed as a secure investment, the use of RFID in fashion retail is increasing year over year.

RFID's untapped potential

RFID distinguishes itself from conventional labeling systems in one significant way: RFID-tagged objects may be read in bulk and even through closed boxes. While this enables fast and accurate stocktakes, there are a variety of more subtle use cases for fashion retailers:

Mobile RFID readers can be used for various store processes, including store-to-store transfers, goods receipts, and warehouse returns. Additionally, mobile devices greatly assist sales employees, mainly when conducting customer consultations or making a direct order or reservation.

Real-time analysis of any data created in the store is possible. And back-end systems, such as ERP, CRM, and loyalty programs, are augmented with previously unavailable information, allowing for a much more complete view of the customer.

RFID technology enables real-time visibility into the relationship between customers and merchandise.

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