RFID is enjoying an increase in popularity as a valuable tool for omni-channel retailing as e-commerce continues to rise.
In fact RFID saw an increase in revenues to $738 million in 2014, compared to $541 in 2013, according to Frost & Sullivan.
“RFID’s ability to increase transparency across the whole supply chain has been one of the key reasons behind its strong adoption among retailers globally,” said Frost & Sullivan Electronics & Security Industry Analyst Ram Ravi. “By using this technology, retailers can track and trace goods as well as identify any bottleneck in the supply chain and address it immediately.” The study covers middleware, hardware and tags.
Demand will continue to grow as large retailers such as Walmart, Gerry Weber and Metro are planning to implement item-level tagging in their outlets.
There are however some issues that retailers have when implementing RFID technology based on the “fear of compromising customer-related information,” said Frost & Sullivan. Issues pertaining to consumer data privacy and security can slow down the pace of market development, the group said.