SPOTLIGHT ON INDIAN ELECTRONICS Spotlight on Indian Electronics | Page 252

HIGH PRIORITY MARKET
Global RFID Market for Retailers to Grow 39 % annually
In a new report, Frost & Sullivan predicts
We ' ve reached a point where passive
In India and China, as well as in North
that yearly RFID revenue will reach $ 5.4
RFID has become a very attractive
America and Europe, such growth is
billion in 2020, due to increased omni
proposition for retailers and they are
being fueled primarily by consumer
channel sales fueled by better
seeing value in the technology moving
behavior. Specifically, shoppers are
understanding of the technology by
forward.
using their phones and tablets to make
retailers, more online purchases, and the
While apparel is driving RFID adoption
purchases, and expect to pick up or
increased tagging of goods by product
at this point in time, another promising
receive products quickly following those
manufacturers.
area of growth in the retail sector is in
purchases. Customer expectations have
Sales of RFID readers, tags and software
perishable foods. As with apparel, meat,
put pressure on retailers to treat their
to the retail sector will grow from $ 738
fresh produce and other perishable
physical stores as distribution centers
million in 2014 to $ 5.409 billion in 2020,
products will be tagged with EPC Gen 2
from which online purchases can be
reflecting a compound annual growth
ultrahigh-frequency( UHF) labels in
fulfilled, and has also encouraged the
rate( CAGR) of 38.9 percent.
order to track food items from the time
launching of online retailers that have no
Both hardware and software companies indicated that the " tipping point " had been reached at which RFID technology use became commonplace for retailers.
they are first packaged, through the supply chain, and into the store. In this way, companies will be able to reduce the percentage of spoilage that, in turn,
physical store presence at all, but rather a keen interest in ensuring that goods are distributed to the areas in which purchases are being made very quickly.
The RFID market for the retail sector is growing because retailers have begun to better understand the technology ' s benefits. The applications for which RFID is used include inventory management, monitoring customer behavior and loss
leads to the high cost of wasted product.
There will be considerable growth during the next few years in India as well, thanks to the country ' s increased presence of smartphones, as well as disposable incomes. China is expected
One key factor driving RFID adoption globally is omnichannel retailing.
Increasing levels of e-commerce and m- commerce lays emphasis on inventory management to prevent loss of customers.
prevention.
to be another large growth area.
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