In the fashion retail the money is lying on the shelves, we just have to take it. Guest blogger RFID Consultant Uwe Quiede from Tailorit tells how that is done!
Earning money - made easy
Those who believe that apparel retailers won't be better off in
the future are misguided. There are ways to achieve this!
The money is lying on the shelves, we just have to take it. And
this is how:
Find out which products are missing, replenish these quickly…
now the customer can find everything he wants and products that are
advertised online are guaranteed to be in stock.
And who can do this? RFID
Yesterday we were still complaining that implementing RFID is so
expensive, today we know better: implementing RFID brings us more
money than we can spend on the implementation. Earn money from the
beginning, how great is that?
But let's be serious.
If finding gaps in product availability and improving customer
service thanks to leaner processes leads to a 2-3% increase in
revenue, then the implementation of RFID is profitable for the
typical fashion retailer. One reason for this is that the prices of
RFID tags have significantly declined in recent years. The standard
RFID adhesive labels are now sold for less than 6 cents and in
larger quantities even for less than 5 cents. At this point,
considering the implementation of RFID is starting to become
Nevertheless: the implementation or RFID can quickly cost
several million, which often have to be forked over within one year
for the roll-out. Not many retailers like the sound of that. But
help is in sight.
We've met with financial service providers to discuss possible
leasing models and have specified the following
- Leasing payments are only due once the roll-out begins
- Costs for tags and service aren't incurred until the roll-out
We entered the leasing rates provided by the financing companies
into our ROI calculation tool and lo and behold: it is in fact
possible that with such a model the revenue is higher than the
costs from the first day on. If this isn't earning money in your
sleep, then we don't know what is!
Development of ROI
during RFID roll-out.
Writer: Owe Quide, RFID