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Detego integrates RFID tech in 1 billion clothing items
23
Nov '16
Courtesy: Detego
Courtesy: Detego
Detego, a retail software specialist, has digitally connected over a billion clothing items using the radio-frequency identity (RFID) technology in a bid to help several European retailers gain actionable insights into product ranges and customer behaviour. Fashion retailers from the UK and Germany lead the field in adopting this technology.

RFID in retail is growing rapidly, according to a research by IDTechEx. The research estimates the total value of the RFID market to be worth over $10 billion and expects it to rise to $18.6 billion over the next decade. This is largely attributed to the falling cost of tags - just a few pence each, depending on volumes - and the advantages offered by automated tracking and real-time visibility of every article in stock.

“The cost of RFID tags has fallen so much over the last decade that most fashion retailers are now seeing the sense of item-level visibility and the more detailed analytics it supports. Connected technologies enable fashion retailers to automate processes and reduce administrative duties, freeing up staff to focus on customer service. Combined with near 100 per cent inventory accuracy, this leads to an enhanced shopping experience and higher sales conversion rates,” said Uwe Hennig, chief executive at Detego.

“With so many consumers now expecting higher levels of service, such as 'click and collect', retailers are coping by sending more inventory to stores and over-compensating. This is a bad idea. Too much stock always leads to excessive discounting and lower margins,” added Hennig.

Detego is currently rolling out its software across 900 stores for a global sports brand, at a rate of about twenty stores a week, to improve the in-store experience for consumers and to support the brand´s omnichannel strategies. The retailer is gradually adding RFID tags to every article of clothing and footwear so that it can manage all 80 million items in real time. Using Detego's software, it will even be able to measure the time it takes to replenish shelves.

Other Detego customers are using fixed ceiling reader systems and RFID to track the movement of goods, while people counting systems can recommend the ideal number of staff needed at different times of the day. Using Detego's software also helps redistribute merchandise after seeing that some products appear to be more popular when sold online, whereas others never make it beyond the fitting room.

“The company is enjoying a significant growth of around 50 per cent a year, as more and more retailers are turning to analytics, RFID and other in-store technologies. It puts its success down to retailers increasingly wanting cloud-based retail solutions with the promise of faster, pay-as-you-go software implementations,” continued Hennig. (KD)

Fibre2Fashion News Desk – India

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