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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Spotlight on Indian Electronics 2016 | 252