The Transformative Value of RFID in Footwear and Mall Retail

August 30, 2023

Shoe apparel and shopping mall retailing are the areas where UHF RFID tags are most widely used today and are the fundamental areas for UHF RFID applications.


The value of UHF RFID in footwear and shopping mall retailing


Value 1: Speed up supply chain turnover efficiency

The supply chain of big brands of shoes and shopping malls is spread all over the world and belongs to FMCG, which is highly consumed. The use of UHF RFID tags can help enterprises visualize the supply chain and accelerate the efficiency of warehouse inventory.


Value 2: Reduce Labour Costs

The high efficiency of UHF tags can help enterprises save manpower costs in two links, the first is in the warehouse link, whether in transit warehousing or shop warehouses inventory, if there are no RFID tags, it will cost a lot of manpower, is also prone to error, and the use of UHF RFID tags after only a small number of people can achieve rapid inventory.


The second link is the cashier link, the traditional shops, each shop needs to be guarded at the cashier-alone settlement, the number of people depends on the size of the shop and the flow of customers, after the use of UHF RFID, consumers can achieve self-checkout.


Value 3: Brand Protection

Brand protection is a very practical need in the field of footwear retail, especially in the Chinese market, e-commerce sales channels are prevalent in the online purchase of goods shops will promise 7 days with no reason to return, which will produce a problem, the shop is their brand of genuine goods when shipped, but the return of the product may be a "copycat", so the use of RFID tags can protect the brand. The use of RFID tags can protect the brand.

In addition to large brands, many domestic small and medium-sized brands shipped through e-commerce channels are also due to this demand and are actively using UHF RFID technology.


Value 4: Increase new business models

Expanding new business possibilities RFID tags can visualize sales data, which allows manufacturers to make quick decisions based on market preferences, invest more resources in the production of consumer-favorite products, allowing manufacturers to achieve flexible production, through the networking of clothes, you can recommend consumers like or more with the product, further stimulating consumer demand.


Footwear and Superstore Retail Market Summary:

The footwear and super retail market is currently the largest application market for UHF RFID tags, the industry's largest single-user user is Walmart, and the annual use of UHF RFID tags reached the level of ten billion, in addition, ZARA, Uniqlo, and Decathlon, Nike and other brands use UHF RFID tags each year the number of billions of levels.


Even if the base is huge, this market still has very considerable growth prospects, for Walmart, For example, the project is only in the North American shops part of the goods use RFID tags, and once Walmart more SKUs use RFID tags, or more regions outside North America to use RFID tags, the volume of growth will also increase many times.


In the Chinese market, RFID tags are growing rapidly among emerging brands, but the older, larger brands have been slower to promote them, which also shows the low market penetration of RFID tags in China, which has a lot of potential.


In this research, we also explored the reasons for the big difference between Chinese and foreign markets, which are summarised as follows:

First, the difference in the market industry chain, foreign big brands, in the global scope of thousands of shops, and these shops are directly managed to ensure that the products from the factory to the transport and then to the sale of their own management; while in the Chinese market, many shoes and clothing brands of the physical shop is a franchise, the middle of the circulation will also be outsourced, the complexity of the industry chain caused by the input cost of rfid is difficult to have a clear This complex industrial chain causes the input cost of rfid is difficult to have a clear bearer, and the cost of communication is also great.


Second, the difference in corporate philosophy, foreign brands using RFID program will have a clear goal, for example, to solve the turnover efficiency or reduce manpower costs, and how much to invest to achieve what is expected, while the Chinese brand is often do not clearly demand, if the short-term failure to achieve the expected results, it will reduce investment.


Thirdly, the difference in the status quo of the enterprise's self-generated business, the supply chain of foreign brands involved in the global supply chain, the use of RFID for the management of the supply chain, and the efficiency of the turnover has obvious positive significance.

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