Analysis of main application fields of UHF RFID
UHF RFID has a large volume of applications and a wide range of application area. In this report, we provide a detailed analysis of the application fields of UHF RFID in the apparel & footwear market in the current market environment.
First of all, we have estimated the shipment volume of each UHF RFID segment.
Analysis and forecast of shipment volume in major segments of UHF RFID tag application market in China (Unit: 100 million)
Data description:
The data rage of this table is the usage of UHF RFID tags in China, such as Wal-Mart, QUNIQLO, Decathlon and other global chain stores, and we only count the usage of these brand applications in Chinese market, because it can best reflect the current situation of RFID tag application in China.
Super retails mainly consider supermarket chains represented by Wal-Mart and Decathlon. Strictly speaking, shoes and clothing are also part of supermarkets’ retail. However, the application of shoes and clothing is very large, so they are listed separately.
In 2021, there was a certain scale of pilot and application in the logistics and express industry. If the application of express logistics breaks out, the share of this segment will increase rapidly, and we will focus on this segment timely.
Below, is a detailed analysis of each major segment of UHF RFID.
Apparel and Footwear
In terms of application scope, super retail is a very broad concept, and the apparel & footwear market is a category of shopping mall retailing. However, because of the high concentration of UHF RFID applications in the Apparel & Footwear market, it is necessary to distinguish it from other retailing to elaborate and analyze.
Apparel
Clothing, food, housing and transportation are the most basic needs of people’s life. China is not only a big manufacturing country, but also one of the largest markets in the world regarding to consumption of apparel & footwear. The following is the annual consumption of Chinese clothing, shoes and hats.
Data description:
Due to the National Bureau of Statistics has cancelled the statistics on the sales volume of clothing products since 2020, we cannot obtain the latest data. However, according to another national statistical caliber, the turnover of China’s clothing products in 2019 was 752 billion yuan, while in 2020, the figure was 670 billion yuan, a decreased of 10.92%. According to this decline estimate, the sales volume of clothing in the Chinese market would be about 21.2 billion pieces. As the apparel & footwear market is relatively stable, it was expected to maintain this level in 2021.
At present, the use of RFID tags for clothing brands is dominated foreign countries, and the potential of domestic market is huge, but the market is yet to be tapped.
Footwear
In this research, the related field of shipments is the most meaningful data, but unfortunately, in the system of the National Bureau of Statistics, there is no statistics about the shipments of shoes and hats market, but there is some data about the turnover of the shoes and hats market, which we have excerpted, as shown below.
Data description:
From the perspective of trend, the turnover of shoes and hats in the Chinese market has obvious downward trend, especially in 2020. Due to the impact of the COVID-19 pandemic, the decline was almost halved. According to the market demand before the pandemic, the turnover of the Chinese shoes and hats market was about 50 billion.
In accordance with the average unit price of footwear and head products in the Chinese market of about 100 yuan, the shipment volume in the shoes and hats market is about 5 billion.
The value of UHF RFID in the field of apparel & footwear
What value will be gained by adopting UHF RFID? Let’s explore together in this research.
Value 1: Accelerate supply chain turnover efficiency
The supply chain of apparel &footwear brands are all over the world. As it belongs to the fast-moving consumer goods, and the seasonal change speed is very fast, the use of UHF RFID tags can help brands realize the visualization of the supply chain and speed up the efficiency of warehouse inventory.
Value 2: Reduce labor costs
The high efficiency of UHF can help apparel & footwear brands to save labor costs in two links. The first is the warehouse link, whether in transit storage or store warehouse inventory, if there is no RFID tags, it will cost a lot of labor, and it is easy to make mistakes. However, after using UHF RFID tags, only a small number of people is need to achieve quick judgment.
The second link is the cashier link. In the traditional shoes and clothing stores, each store requires a person to guard the cashier’s checkout. But after the use of UHF RFID tags according to the size of the store and the flow customers, consumers can easily achieve self-checkout.
Value 3: Brand protection
Brand protection is a very practical demand in the field of apparel & footwear, especially in the domestic market. As the e-commerce sales are very popular in China, on-line stores promise that buyer can return the goods within 7 days without any reason. This is for the protection of consumers, but it will lead to a problem – While the store delivers its own genuine goods, the returned goods may be “fake”. Because the manufacturers of apparel & footwear are mainly in China, many fake products may be no different from the genuine products. Therefore, using RFID can protect the brand of the manufacturer.
In additional to big brands, many domestic small and medium-sized brands ship through e-commerce channels are also actively adopting UHF RFID technology because of this demand. In our research, we found that such customers are increasing rapidly in the past two years.
Value 4: Expand new business possibilities
RFID tags can realize the visualization of sales data, which enable manufacturers to make quick decisions based on market preferences and invest more resources to produce products that consumers love, allowing manufacturers to achieve flexible production. And through clothing networking, you can recommend products to consumers that they like or are more compatible with, thus further stimulate consumer demand.
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