RFID Item-Level Tagging in Fashion and Apparel

Tackling the Business Issues that Stifle Adoption

Item-level tagging in the apparel market is an application already consuming 100 million tags a year in a single limited but industry-leading deployment. Marks & Spencer in the UK has successfully demonstrated a model for RFID use in the apparel space, but there have also been a number of well publicized trials in the United States, Japan and elsewhere. However, adoption within the industry remains extremely limited. Even some companies that have led with their own RFID pilots and have witnessed positive results have failed to move into adoption and rollout. The technology provides a platform for multiple applications but its prime benefit in the retail market is in providing a quick, automated, cost efficient and accurate way to track inventory through the supply chain and in the retail environment. These benefits are not the sole preserve of large stores or chains, because the issues that create poor inventory control are common across the retail market. Slow adoption has been blamed on the technology – either the cost, the lack of a common standard or both – but early trials and deployments have shown not only that a strong return on investment is possible, but also that closed loop applications require no standardized technology. This study explores the potential for both closed and open loop deployments of item level tagging in the fashion and apparel market. It also examines some of the issues that have held back adoption so far, and how they should be tackled. In addition, a number of leading trials and deployments from around the world are assessed.

Table of Contents

Executive Summary

Section 1.
THE BENEFITS OF ITEM-LEVEL TAGGING IN FASHION
1.1. Item-level Tagging on the Retail Sales Floor
1.1.1. Out of Stock
1.1.2. Shrinkage
1.1.3. Inventory
1.1.4. In-Store Replenishment
1.1.5. Customer Service
1.1.6. Interactive Retail
1.1.7. At the Point of Sale
1.1.8. Markdowns
1.1.9. Shelf Edge Solutions
1.2. Item-Level Tagging in the Supply Chain
1.2.1. Automated Receiving
1.3. Item-Level Tagging for Brand Protection

Section 2.
TECHNOLOGY – AVAILABILITY, INTEROPERABILITY, AND STANDARDS
2.1. HF versus UHF
2.2. Standards and Industry Groups
2.2.1. Readers

Section 3.
KEY ADOPTIONS AND TRIALS
3.1. Europe
3.1.1. Marks and Spencer
3.1.2. Lemmi Fashion
3.1.3. Metro Group
3.2. The Americas
3.2.1. Levi Strauss
3.2.2. Gap, Abercrombie & Fitch, J.Crew, Industry Standard
3.2.3. Dillard's
3.2.4. New Balance
3.2.5. Falabella
3.3. Asia
3.4. Pilot Application Conclusions
3.4.1. Pilot Application Variety
3.4.2. Pilot Lessons Learnt



Tables
  • Item-Level RFID Market, World Market, Forecast 2007 to 2012 ($ Millions)
  • Item-Level RFID in Fashion and Apparel, Transponder Shipments by Frequency: World Market 2007 to 2012 (Millions)
  • Item-Level RFID in Fashion and Apparel, Transponder Revenues by Frequency: World Market 2007 to 2012 ($ Millions)