POPULAR WORDS

The ability of radio frequency identification (RFID) to help apparel companies do more with less in the wake of economic downturn is driving an unprecedented surge in adoption throughout the sector.

That’s the view of global market analysts ABI Research, which predicts sales of item-level RFID systems to apparel companies will triple over the next five years to total US$125 million by 2014.

The use of RFID in the apparel sector represents the greatest near-term opportunity for business improvements, ABI Research RFID Practice Directory Michael J. Liard says, and with the fewest impediments to growth in the retail industry.

"A quick, demonstrable ROI and key business metrics for adoption have been clearly established and the results of nearly all evaluations conducted have been compelling," he says.

"As a result, market activity is brisk and promising, especially among early-adopter specialty apparel retailers."

According to a new research brief from ABI Research, item-level RFID systems have become a key competitive advantage and business process automation differentiator for apparel companies due to their ability to drive increased sales and facilitate significant labour cost reductions by providing improved inventory visibility.

Previously limited to a small number of large-volume pilot tests, adoption of item-level RFID is beginning to permeate throughout the apparel sector and is increasingly evolving into full-scale implementations.

"While installations at Marks and Spencer in the United Kingdom, American Apparel in the United States, and Charles Vögele in Switzerland remain the largest contributors to market growth, scores of companies are now in various stages of implementation. RFID in fashion apparel is undoubtedly here and now," Liard says.