NXP Identifies Top Global Trends in RFID for the Retail Market – Speaks at RAIN RFID Alliance Meeting in Seattle
July 19 2017 - 12:00PM
While the on-demand economy has led to many brick-and-mortar stores
declining, omnichannel services continue to grow. Smart supply
chain management with advanced tracking and monitoring capabilities
enabled by RAIN (Radio frequency IdentificatioN) RFID support both,
short and extended range communication, are empowering retailers to
address a multitude of new use cases. In combination with
consumer-to-goods interaction through NFC (Near Field
Communication) tags are increasingly adopted as key elements of
consumer interaction and loyalty strategies. Interactive store
functionalities, brand verification solutions, and contactless
payment with NFC smartphones are also gaining traction as an
integral part of the consumer shopping experience.
An infographic accompanying this announcement is available
at http://www.globenewswire.com/NewsRoom/AttachmentNg/55a87ab2-cbdf-4906-92e0-8de551b66cb8
Here are the top global trends in RFID for the retail
market:
Trend 1: Retailers are embracing RFID to enhance the
“smart” consumer shopping experience
Today, smart fitting rooms equipped with intelligent mirrors
assist and enhance the shopping experience. Smart mirrors read the
RAIN RFID tag of the merchandise and displays the item on a
touchscreen behind the mirror’s glass while a recommendation engine
displays matching accessories such as shoes or a purse. By enabling
interaction between the customer and shop assistants or feedback
from friends via social media, the smart fitting room meets demands
of a new generation of customers that perceive smart connectivity
as a natural enhancement of shopping experiences. Some high-end
retailers like Ralph Lauren1 or Rebecca Minkoff2 attribute
interactive changing rooms to a 30 percent increase in sales,
confirming the attractiveness of smart assets in the physical
shop.
Trend 2: Retailers are leveraging RAIN RFID for
omnichannel smart-supply chain management
With the advent of the on-demand economy, multichannel processes
and omnichannel retailing have grown considerably to address the
need for accurate information about stock and location of goods.
Brick-and-mortar stores are leveraging predictive analysis software
that allows optimization of processes and enables retailers to
recognize sales potential in order to introduce new and special
“click and collect” departments into the store. In order to power
both of these solutions and turn big data into smart data,
retailers are utilizing RAIN RFID technology, as it delivers
accurate real-time data to software analytics. Some retailers have
confirmed that smart-supply chain management helps maximize shares
in the competitive customer market, for example, sports retailer,
Decathlon3, reported that sales have increased by 2.5 percent with
improved stock visibility, and Macy’s4 recently reported it reduced
inventory costs by $1 billion as a result of RFID
implementation.
Trend 3: Retailers are integrating RAIN RFID solutions
to monitor perishable goods
For food retailers, getting the products from the warehouse to
the shelves at the right time before expiration is a challenge.
These industries often do not have accurate insight in durability
of perishable goods in inventory. This results in unnecessary waste
worth $162 billion annually5, not to mention the health risks and
environmental impact. According to an industry study6, a $10
billion retailer can reduce losses by up to $60 million a year
through effective shrinkage and freshness management. To maximize
such savings, food retailers are conducting large scale testing of
RAIN RFID solutions, including tracking and sensing technology for
temperature and humidity monitoring. Such solutions allow
distributors, logistic companies and wholesalers to locate their
orders online, in real-time. In combination with electronic shelf
labels, retailers would be able to react to expiration dates with
reduced prices, or even make general sales campaigns directly
visible to the customer.
Trend 4: Enhanced consumer interaction and contactless
payment via Smartphone with NFC will continue to gain
traction
NXP’s RFID product portfolio supports the entire retail
ecosystem, including reader chips enabling smartphones to read NFC
tags and establish Internet-of-Things (IoT) connection and the
reader chips in the Point-of-Sale (POS) that enable secure
contactless payments via smartphones or payment cards. Contactless
payment is increasingly seen as an integral part of a seamless
shopping experience by both the customer and retail partners.
NXP Speaks at the RAIN RFID Alliance Meeting this
Week
In a presentation, taking place today, Wednesday, July 19th, at
2:30 p.m. PT at the Amazon Day 1 Building in Seattle. Suresh
Palliparambil, senior director, sales and marketing – Americas,
security and connectivity at NXP will speak on the topic, “Leading
the IoT with Security and Connectivity Solutions.” The presentation
will outline the benefits that NXP brings to retail, including RAIN
RFID technologies, NFC tagging solutions, smart payment solutions,
and Bluetooth Low Energy (BLE) innovation.
References
1 According to Bloomberg BusinessWeek:
https://www.bloomberg.com/news/articles/2017-02-16/-smart-mirrors-come-to-the-fitting-room
2 ,3 ,4 According to the RAIN RFID Alliance website:
http://rainrfid.org/markets/retail-market/5 According to the United
States Department of Agriculture:
https://www.usda.gov/oce/foodwaste/faqs.htm6 According to a report
by Oliver Wyman, “A Retailer’s Recipe, Fresher Food and Far Less
Shrink,”
http://www.oliverwyman.com/content/dam/oliver-wyman/global/en/2014/jul/2014_OW_aRetailersRecipe_4.pdf
About NXP Semiconductors
NXP Semiconductors N.V. (NASDAQ:NXPI) enables secure connections
and infrastructure for a smarter world, advancing solutions that
make lives easier, better and safer. As the world leader in secure
connectivity solutions for embedded applications, NXP is driving
innovation in the secure connected vehicle, end-to-end security
& privacy and smart connected solutions markets. Built on more
than 60 years of combined experience and expertise, the company has
31,000 employees in more than 33 countries and posted revenue of
$9.5 billion in 2016. Find out more at www.nxp.com.
NXP and the NXP logo are trademarks of NXP B.V. All other
product or service names are the property of their respective
owners. All rights reserved. © 2017 NXP B.V.
For more information, please contact:
Americas
Tate Tran
Tel: +1 408 802 0602
Email: tate.tran@nxp.com
Greater China/Asia
Esther Chang
Tel: +886 2 8170 9990
Email: esther.chan@nxp.com
Europe
Martijn van der Linden
Phone: +31 6 1091 4896
Email: martijn.van.der.linden@nxp.com
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