Robert Pernice: One of the main challenges is inventory and product visibility, generally beauty products contain liquids and/or have metallic packaging embellishments. Both make UHF RFID tags difficult to read. But Avery Dennison has developed innovative, low-cost tags that work well on liquids and metal. Like UHF RFID for apparel, Avery Dennison programs each tag with a unique ID number (EPC - Electronic Product Code). Unlike barcodes, UHF RFID tags don’t need to be in the line of sight to be read and the in-store scanning process is speedy—an entire beauty department or store, with tens of thousands of items, can be “read” in under an hour.
For retail apparel and footwear, RFID has the ability to improve inventory accuracy, from 65% to greater than 99%. Improved inventory accuracy and visibility, and the resulting business benefits (1.5 % to 5.5% sales uplift and associated margin increases), are the key reasons behind RFID adoption.