What are the upcoming technological innovations that the industry can expect this year?
The industry will see more retailer RFID (radio frequency identification) initiatives. The initial justification will be primarily targeted at improving inventory visibility within the store, and reaping the benefits of increased sales and fewer markdowns associated with inaccurate inventories. Retailers with more mature RFID programmes will explore additional use cases related to the customer shopping experience as well as a tool to facilitate omni-channel logistics.
Retailers who have adopted RFID item-tagging, and who likely began by tagging garments, will be looking to reduce costs associated with tagging and further improve their ROI. The primary opportunity for retailers to reduce their tagging costs is to push that process back to their suppliers where tagging costs are much lower. Source tagging of RFID tags could reduce costs by as much as $.15 per garment.
Another trend seen in RFID item-tagging is the move to integrated tags where the RFID chip is embedded directly into the existing price tag. This has two benefits. The first is cost reduction of up to $0.20 per item achieved by combining two tags into one, as well as eliminating the cost of applying an additional tag or label. This savings is in addition to the ones that retailers can achieve by going to source-tagging. The second benefit which product managers and merchandisers will appreciate is the elimination of that unattractive RFID sticker or secondary tag which cries out "mark down." With integrated tickets, brands' logos and important consumer information are no longer hidden by these additional tags or stickers.
What kind of spends are being allocated towards R&D?
There is a glut of information on the web about future RFID spending. According to IDTechEx, "In 2014, the total RFID market is worth $8.89 billion, up from $7.77 billion in 2013 and $6.96 billion in 2012. This includes tags, readers and software/services for RFID cards, labels, fobs and all other form factors. IDTechEx forecast that to rise to $27.31 billion in 2024."
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