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Increasing Awareness of its Benefits to Boost Uptake of RFID Technology in Retail, Says Frost & Sullivan

- Mandates from large retailers and early adopters will drive demand for RFID

LONDON, Nov. 29, 2012 /PRNewswire/ -- The European radio frequency identification (RFID) market in the retail industry offers considerable growth potential. The promise of enhanced benefits for businesses and the growing importance of item-level tagging will add impetus to market development. However, issues pertaining to data privacy and the lack of understanding about return on investments (ROI) threaten to slow down the pace of market expansion.

New analysis from Frost & Sullivan (http://www.autoid.frost.com), Analysis of the European RFID Retail Market, finds that the market earned revenues of $289.6 million in 2011 and estimates this to reach $3,206.0 million in 2017. The research covers tags, hardware and middleware/software. Key growth businesses include apparel and footwear, perishables, jewellery, and personal care. In addition, specialty retail is also gaining prominence.

The enhanced benefits in various business processes across the retail supply chain will continue to drive RFID adoption. Advantages include better inventory management, improved operational efficiency, reduced labour, greater visibility, information accuracy, higher sales, and superior customer service.

"The increased prominence of item-level tagging will further augment opportunities for RFID across retail applications," noted Frost & Sullivan Senior Research Analyst Ram Ravi. "Tags and hardware (readers and printers) are expected to witness considerable increase in demand as a result of the rising preference for item-level tagging."

Item-level tracking provides better results in terms of inventory management and visibility along the supply chain while helping negate the impact of counterfeit products. In addition, mandates from retailers such as Wal-Mart, Gerry Weber, and METRO to implement item-level tagging in their outlets are also boosting demand for RFID pilots and implementation.

However, the lack of clarity about integrating RFID with existing IT systems is inhibiting adoption rates.

"Issues related to integration can be attributed to the skill level of system integrators, the existing infrastructure, and interoperability," explained Ravi. "While the impact of this challenge is likely to be limited in the short-term as the adoption of RFID technology in the retail industry is still in the early stages, it is expected to intensify as RFID adoption becomes more widespread."

The choice of system integrators will be key to successful implementation. System integrators will require complete awareness about the processes involved in the retail supply chain as well as expertise in the handling, installation, and maintenance of the RFID-related products. Failure to meet these standards may result in adverse effects which, in turn, will impact adoption levels.

If you are interested in more information on this study, please send an e-mail with your contact details to Julia Nikishkina, Corporate Communications, at julia.nikishkina@frost.com.

Analysis of the European RFID Retail Market is part of Automatic Identification Growth Partnership Service programme, which also includes research in the following markets: Strategic Analysis of the Global RFID Middleware Market, World RFID Health Care Market and Analysis of RFID in the Data Center Market. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organisation prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us: Start the discussion
Join Us: Join our community
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Register: Gain access to visionary innovation

Analysis of the European RFID Retail Market
M881-11

Contact:
Julia Nikishkina
Corporate Communications – Europe
P: +7-499-918-6146
E: julia.nikishkina@frost.com

http://www.frost.com

About PR Newswire
Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

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