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The application of RFID technology in the field of domestic footwear and clothing supermarkets will usher in a golden growth period

The application of RFID technology in the field of domestic footwear and clothing supermarkets will usher in a golden growth period

28 Aug 2024

When it comes to the application of RFID in the field of footwear and clothing supermarkets, it can be traced back to 2000, when Wal Mart began to use RFID in retail scenarios. Later, Decathlon established RFID company in 2010; Zara's parent company Inditex decided in 2014 to adopt RFID technology across the entire group, and RFID gradually began to be widely used in the retail field of supermarkets. Today, RFID has gradually penetrated the retail market both domestically and internationally, and has developed into a relatively mature technology. From the perspective of application and market penetration, the current penetration rate of RFID in the footwear and apparel category is close to 20%. Whether in overseas or domestic markets, there are relatively exemplary cases of RFID in the footwear and apparel retail field. According to the degree of RFID application by different brands, brands on the market can be divided into three categories: fully using RFID, partially using RFID, and not using RFID (but with potential willingness to use it).

It is understood that with the growth of RFID applications in the overseas footwear and apparel market, many domestic footwear and apparel retail brands have also begun to try using RFID. From the perspective of development, RFID applications in the footwear and apparel retail industry have gone through three stages:

2010-2017: RFID Overseas Development Stage. At this stage, few brands in China use RFID tags. The shoes and clothing retail brands that use RFID more in the market are mainly Wal Mart, Decathlon and other large enterprises.

2017-2019: The initial stage of RFID in China. At this time, some domestic shoe and clothing brands began to gradually adopt RFID technology, such as companies like Hailan Home and La Chapelle, as well as overseas companies like NIKE, ADIDAS, Uniqlo, and H&M, which began to optimize their domestic supply chains and use RFID for inventory management. At this stage, in the stage of widespread application of RFID, the market lacks the landing of major domestic projects, and many enterprises are in a wait-and-see state towards RFID.

2019-2023: The cognitive popularization period of RFID in the retail market. At this stage, many retail enterprises gradually understand the help and effectiveness of RFID for retail enterprises, and recognize the value of RFID. At this stage, two valuable RFID retail routes have emerged - the large-scale landing of large brands and the refined management of small brands. More and more shoe and clothing brands are realizing the value of RFID and are spontaneously exploring its application to their brands.

Now, the RFID industry is in the fourth stage, which is the rapid growth stage of the market. Among large brands, in addition to footwear and apparel brands, many non footwear and apparel retail brands have also started using RFID management in the market, such as Laoxiangji, Qian Dama, McDonald's, and so on. In small brands, due to the low hidden cost of information technology transformation, more and more brands are willing to adopt RFID technology to manage their supply chains. In addition, in the retail field, many new formats have emerged, such as RFID management for brand express e-commerce, which has also brought significant incremental RFID applications to the entire retail industry.
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