Introduction of RFID in the Indian Retail Market
RFID and the Indian Retail market
India represents an economic opportunity on a massive scale, both as a global base and as a domestic market. Retail growth in the coming years is expected to be stronger than GDP growth. This is driven by changing lifestyles and by strong income growth, which in turn will be supported by favorable demographic patterns and the extent to which organized retailers succeed in reaching lower down the income scale. In this light, Radio Frequency Identification (RFID) is fast becoming a hotbed of activity targeting the Indian market in retail, logistics and manufacturing.
A plan to introduce a whole new technology calls for an in-depth analysis of the dynamic economic, social and technological considerations. An attempt for the same has been made through SWOT analysis for introduction of RFID in the Indian retail segment. A phased approach has been suggested for the smooth implementation and adoption of RFID technology in India.
Improved track and trace capability
A better customer interface
Faster information dissemination to the customer
Freeing up of personnel from tracking and ensuring item availability, giving them time to interact with customers. This often takes up to 70 percent of their time. Using Point-of-Sale (PoS) data, retailers will be able to plan replenishments better and help manufacturers improve demand planning
Adoption will be slow in India as the retail sector is not organized and RFID requires an organized retail sector to be successful Privacy issues - It can constitute a breach of privacy as anyone having a tag reader, authorized or not, can track an object or a person wearing a RFID tag The high price of RFID tags and readers is a stumbling block. Some RFID readers today cannot read through metal and liquids. The industry...