Published on March 23, 2019
One of the main obstacles for utilizing the RFID technology, frequently cited by retailers, is the cost of the RFID system implementation. However, if we talk about high-value luxury products, this seemingly costly initial investment gets amortized by the advantages of the RFID technology brought to the luxury retailers in multiple business stages.
Theft protection, inventory accuracy or perfect customer service and experience are only a couple, but quite important benefits of the item-level RFID usage in the luxury retail.
Then we come to the next challenge set in front of luxury brands –attaching tags to the products. If done in the shop or even in distribution, it increases time and labor costs and decreases efficiencies.
RFID has the answer to this issue as well – the source tagging. For the most prominent luxury brands application of tags during the manufacturing process is often the most cost-efficient option too, given their control over the production itself.
If the value of a luxury item is between a couple of hundred and a couple of thousand dollars, then the investment of approximately 10 cents per tag in the source tagging to make the item shelf-ready as soon as it enters the shop, and “visible” at any time and any place is insignificant. (1) RFID tag sales to cross 8 billion in numbers sold and growing.
In your opinion, which is the most important benefit that luxury retailers get by utilizing source tagging?