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July 9, 2010
FROM RETAILWIRE:
Much of the hyperbolic speech about radio frequency identification (RFID) in retailing has been muted in recent years, but use of the technology continues to grow. What is your assessment of the current state of radio frequency identification technology in retail?
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I foresee item-level RFID continuing to grow fastest in categories like fashion, prescription drugs and consumer electronics, where the price points are higher and the velocity lower than CPG. Tagging display fixtures and pallets makes practical sense too. It would be a mistake to regard those little transponders as magic bullets, however.
To attain a balanced perspective on the potential of item-level RFID, one must widen the thought process beyond the supply chain and consider its potential impact upon In-Store Implementation and compliance. Today we have a sparse patchwork of in-store sensing and measurement tools that inadequately illuminate the selling floor for merchants and marketers.
RFID could help. It may soon be one of several key enablers for the emerging ISI discipline. Then again, after 30 years we're still learning how to capture and put to use the data flows from our POS scanners.