The global apparel industry is undergoing a digital transformation, and Radio Frequency Identification is at the forefront of this evolution. Radio Frequency Identification (RFID) is now extensively used in the garment industry. Clothing manufacturers are using the technology to prevent theft and improve their overall efficiency.
With the increasing demand for efficiency, inventory accuracy, and enhanced customer experiences, RFID has emerged as a game-changing technology for apparel retailers.
According to a recent study by Accenture, RFID implementation can improve inventory accuracy by up to 98% and reduce out-of-stock situations by 50%, making it a critical asset in modern retail management.
Market growth and adoption trends show that RFID adoption in the apparel segment has surged in recent years. As per a report, the global RFID market in retail was valued at $10.3 billion in 2023 and is projected to grow at a CAGR of 9.2% from 2024 to 2029. Major brands such as Zara, H&M, Nike, and Uniqlo have successfully implemented RFID to streamline inventory management and improve supply chain efficiency. Moreover, RFID is also streamlining apparel production to end-consumer delivery.
Understanding RFID Technology
Radio Frequency Identification (RFID) uses radio waves to identify and track tags attached to apparel items automatically. RFID has the advantage of not requiring a proper line of sight for scanning, this allows retailers to process multiple items simultaneously. By attaching RFID tags to individual clothing items or fabrics, accurate inventory monitoring becomes possible. The RFID system for apparel management consists of three primary components, namely RFID clothing tags, RFID readers and antennas and RFID software. Each play a crucial role in tracking and managing apparel products efficiently.
1. RFID tags
RFID Tags are electronic tags that are used to identify and track each clothing item. Each tag is digitally encoded, carrying information on apparel characteristics, such as its size, colour, price, date of manufacturing, etc. in the form of unique IDs. These tags ensure tracking of clothing item, from production to distribution centres and inventory, retail stores and end consumers. RFID technology for the apparel industry can track garments throughout their entire lifecycle starting from manufacturing to warehousing, distribution, and point of sales. There are different RFID tags that are used in the Apparel industry. Let’s see some of these RFID tags.
(a). RFID Linen Tags
RFID linen tags are specialised tags designed for tracking textiles in various laundry applications. These washcare linen tags are waterproof and resistant to common laundry chemicals, they have the endurance of up to 200 wash cycles or three years.
(b). RFID Hang Tags
RFID hang tags are versatile, high-performance tags that are made from flexible materials like paper or PET. They have a read range of up to 10 metres, and the ability to withstand 100,000 write cycles. These tags are easy to use and reuse as it can be hanged to clothing items and removed and repurposed using the apparel tracking software system.
(c). RFID Taffeta Tags
Taffeta RFID tags are washable, durable tags made from taffeta fabric material. These tags are often used as RFID clothing labels and can be sewn into garments for tracking purposes, commonly used in laundry management systems to identify individual items within a large batch.
(d). RFID Satin Tags
RFID satin tags are made up of ribbon satin fabric material which is soft, durable, waterproof and non-toxic. It has the capability of being read from large distances and has a working temperature of -20℃ to 85℃. It helps in cutting down the labour cost which can help enterprises reduce their costs.
For small sized jewellery accessories, retailers are also using RFID jewellery tags.
You can visit Encstore.com to get any type of tag that can optimise your business operations.
2. RFID Readers
RFID readers are devices that capture data from tags and relay it to the apparel inventory management system. They come in different shapes, sizes, and functionality and it is important to know the business needs before purchasing one as RFID Readers can cost anywhere between 50, 000 INR to 1 lakh INR. These readers are an essential component of the RFID system, to process critical data. They can be fixed and portable handheld readers and RFID mobile computers.
(a). RFID Fixed Readers
RFID fixed readers can be permanently installed at specific locations such as doorways or conveyor belts, to scan tagged clothing items within the scanning range. They can be efficiently used when requiring continuous scanning and monitoring such as supply chain tracking. For instance, the Zebra FX9600 Fixed Reader can scan 1200+ tags in a second. Implementation of these can take place at organisations to streamline workflow and achieve greater efficiency.
(b). RFID Handheld Readers
A handheld RFID reader is a portable device that operators can carry around to scan RFID tags on apparel in an apparel tracking system. It provides impressive efficiency and mobility in apparel production environments as well. Handheld RFID readers are equipped with a small screen and trigger button, allowing users to see real-time data and interact with the system directly. For instance, the Zebra RFD40 Handheld RFID Reader can be very efficient in apparel tracking as it provides a read rate of 1300+ tags/sec which is quite impressive for a portable handheld reader. It also offers long read range, scanning tags within the 15m scanning zone.
3. RFID Antennas
RFID antennas facilitate communication between tags and readers. Antennas act as a bridge between tags and readers for their efficient communication and low latency among them. Their design and placement impact the efficiency of data capture.
UHF RFID Antennas are also efficient in increasing the range of RFID fixed readers if placed in appropriate positions. For example, the Zebra AN480 RFID antenna promises long-term performance and flexibility in placement with its rugged, reliable performance in indoor and outdoor areas.
RFID antenna can be of different types depending on their performance, capability, and design, say circularly polarized antenna, near-field antenna, linear polarized antenna and far-field antenna, etc.
Top 5 Benefits of RFID in the Apparel Industry
The adoption of RFID in apparel industry can generate numerous benefits. It can help in the reduction of overhead costs, streamlining the labour easily and can solve issues regarding replenishment, understocking and overstocking. Let’s explore some of these benefits in detail.
1. RFID Enables Reduction in Shrinkage and Theft
It becomes a vital concern when stocks get low in number due to any factor like theft or misplacement. Retail shrinkage due to theft, misplacement, and administrative errors costs the industry in billions annually. RFID can reduce shrinkage by up to 30% as per reports. By efficient asset tracking solutions, we can keep an eye on every asset that the organisation is handling thus, creating well-maintained inventory.
2. Faster Checkout and Improved Customer Experience
RFID technology can be used to automate the checkout process, reducing wait times and improving the overall shopping experience. Customers no longer need to wait while each barcode is manually scanned, leading to a seamless and frictionless shopping experience. RFID-enabled checkout systems can scan multiple items at once, reducing checkout times by up to 50%. With the advancement of UHF RFID capable smartphones, even customers can scan RFID tagged apparel in retail stores and check-out by themselves after making payments in near future.
3. Better Quality Control is Achieved with RFID
The apparel industry keeps on changing rapidly. Amongst the evolving business landscape, counterfeit products and damaged goods are a concerning issue. It is very hard to track, identify, and locate all products manually. An RFID tag can help improve visibility at each checkpoint, from manufacturing, to storage, and point of sale and ensure product authenticity.
4. Efficient Restocking is Possible using RFID
With RFID readers, textiles and garments can be swiftly scanned and updated, providing instant inventory data. This facilitates efficient restocking procedures, ensuring that popular items are replenished in a timely manner. With the help RFID technology, the organisations are always stocked and prepared for future business opportunities.
5. Accurate Inventory Tracking
One of the biggest challenges in apparel retail is inventory discrepancies. With RFID, retailers achieve up to 99% inventory accuracy, compared to 60-70% with traditional methods. RFID based apparel inventory management system ensures that stock levels are correctly reflected in the software system, reducing out-of-stock situations and optimizing replenishment. It is an important task to maintain an accurate inventory for a running business.
RFID on clothes: Use case of RFID Tags in Apparel Industry
1. Zara -Inditex, Zara’s parent company, has implemented RFID across 2,200 stores, achieving inventory accuracy levels of 98% and reducing out-of-stock situations by 30%.
2. Nike -The sportswear giant has adopted RFID to enable full supply chain visibility, cutting stock mismatches by 20% and improving fulfilment rates for online orders.
3. Uniqlo -By integrating RFID into its stores, Uniqlo has reduced checkout times by 50% and enhanced self-checkout experiences.
To summarize, RFID technology in the apparel segment enhances inventory visibility, reduces shrinkage, and improves customer experiences. The combination of tags, readers and antennas ensures efficient tracking of apparel, from the production units to warehouses and retail floors.
With various luxury brands leveraging RFID for inventory management and anti-counterfeiting, RFID adoption in apparel industry is proliferating, optimizing operations for both brands and retailers. Essentially, RFID is transforming the way apparel businesses operate.
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