Retail and Payments Industry. 03/15/14. Radio Frequency Identification Near Field Communication. RFID Technology NFC Technology Business case in Retail Industry ROI in Retail Introduction to Contactless Payments Latest trends in Contactless Payments Q&A. Agenda. What is RFID?.
Radio Frequency Identification
Near Field Communication
The RACE is on in RETAIL. Retailers are determined to be the first to deliver the perfect shopping experience to their customers. With hundreds of retailers adopting RFID, there is clearly an advantage to be gained from this
While the RFID solution greatly enables the efficiency and visibility of the supply chain, it generates other benefits for the retailers which allow to company to make smarter decisions.
Source: ABI research
RFID Enables Omni channel Retailing
American Apparel has fully deployed RFID at its 254 stores around the world. Stacey Shulman, CTO of American Apparel, says that the fully RFID automated inventory visibility solution has significantly improved inventory accuracy and on-shelf availability.
Stacy Shulman, CTO, May 2013
Macy’s chief Omni channel officer Robert Harrison said that RFID and Omni channel represent “a huge sales driver” for Macy’s. Sales in the third quarter of 2013 totaled $6.276 billion, up 3.3 percent from total sales of $6.075 billion in the third quarter of 2012, many of which carry item level RFID tags that contributed strongly to the third quarter sales gains.
Robert Harrison, COO, June 2013
Borsheimsturned to RFID to monitor the high-priced JEWELRY items throughout
the 62,500 square foot store and as a safeguard against employee theft.
RFID helps company staff to track and trace jewelry as it moves around the store,
be it to the back room to be cleaned or if it is inadvertently relocated within the store.
Limas, CFO, May 2013
Exponential Increase in the Data Volume
Integration with Existing Systems
Filterting Out Unwanted Data
Finding the Business Value with the Data
Assume a retailer with 200 stores
Sell roughly 12.5 million items per year at an average of $25
Yearly turnover is
TOTAL INVESTMENT COST
TOTAL ONGOING COST
TOTAL COST YEAR 1
Assuming consumer would buy increased accuracy of stock and based on certain criteria’s
Retailer will make together over $34 million with estimated 10.8 % increase in the sales.
Let assume that the actual sales only go up by 3% which is quarter of estimated 10.8%, then also it means
$8.5 million growth and a cost saving of $712,800
Payments Industry is witnessing a dramatic change leveraging the technological advancements in the wireless technologies over the last decade.
NFC itself is a proximity technology relying on the smartcard standard ISO/IEC 14443
EMV is the technical standard that ensures chip-based payment cards and terminals are compatible around the world
In Jan’2014, Apple got a patent (US 20140019367) “Method to send payment data through various air interfaces without compromising user data” which integrates NFC technology with other wireless technologies like Wi-Fi and Bluetooth