The adoption of Radio Frequency Identification (RFID) technology in retail began as early as 2000 when Walmart pioneered its use in supply chain management. This marked the start of a transformative journey for the retail industry. Later, in 2010, Decathlon established an RFID subsidiary, while Zara’s parent company, Inditex, fully embraced the technology across its brands in 2014. Since then, RFID has seen widespread application in the footwear and supermarket retail sectors. According to a McKinsey survey, 73% of retailers in Europe and the U.S. are either using or planning to implement RFID solutions, reflecting its rapid growth. Technologically, RFID has reached maturity, particularly in developed markets like Europe and North America, where it is now a cornerstone of modern retail operations.
Today, RFID technology is a mature solution applied across various industries. This article explores its evolution, current applications, mainstream tag types, and value in the footwear and supermarket retail markets, offering insights into its past, present, and future.
Current Market Status in Footwear, Apparel, and Retail
The footwear, apparel, and retail sector can be divided into three main categories: clothing and accessories, hardware products, and food and pharmaceuticals. Below is a brief overview of the application of RFID tags in these areas.
1.1 Clothing and Accessories
The clothing and accessories sector is already a mature field for RFID applications. In developed countries like the United States and Europe, RFID is widely used. However, in developing countries such as China, where labor costs are relatively low, manual or QR code-based inventory management remains the primary method. According to AIOT Research Institute's data, fast-fashion and sportswear brands such as Adidas, Nike, Uniqlo, MUJI, H&M, and UR are the most active adopters of RFID. Additionally, emerging brands and independent designers are beginning to use RFID tags for managing their products.
1.2 Hardware Products
In first- and second-tier cities, the use of electronic shelf labels (ESLs) for price display is becoming a noticeable trend. However, RFID can complement ESLs by improving inventory turnover efficiency. Although this area has not yet seen widespread adoption, it is a focus for many RFID industry professionals. In the 3C sector, particularly for smartphones, there is an expectation that NFC (a subset of RFID) will be used for management, with several countries already exploring its implementation.
1.3 Food and Pharmaceuticals
Some international brands have started experimenting with RFID tags in the food and pharmaceutical industries. Companies like Red Bull, Rite Aid, and San Daniele have begun deploying RFID tags for certain products. In this sector, RFID not only facilitates quick inventory checks and item tracking but also plays a crucial role in anti-counterfeiting, traceability, and expiration date management.
Paper-Based RFID Tags
Paper-based RFID tags are the most commonly used in the apparel industry. They come in two forms: wet inlay and dry inlay, with wet inlay being more prevalent. These tags can be directly integrated into product hangtags, allowing for easy modification without additional production steps. Some retailers also use NFC or other RFID products, attaching tags directly to items for end-to-end product management. However, paper-based tags require an additional step during production to attach them to hangtags or products.
Hangtag RFID Labels
Hangtag RFID labels are the second most common form in the apparel retail sector. They are primarily used for clothing, footwear, and some women's handbags. With hangtag labels, only the tag data needs to be synchronized, eliminating the need for additional production processes.
Woven RFID Labels
Woven RFID labels are mainly used in laundry products, such as those in hotels and hospitals. For cotton products that require regular washing, some companies sew RFID labels into the fabric to track product and room information. Notably, Zara has begun experimenting with woven labels in its overseas stores, replacing traditional hangtags, indicating potential growth for this type of label.
Anti-Metal RFID Tags
Anti-metal RFID tags are rarely used in the apparel industry, except for certain woolen garments or clothing with metal components. However, they are more commonly used in the beverage industry, where NFC tags are applied to metal cans or bottles.
Hard-Shell RFID Tags
Hard-shell RFID tags combine traditional EAS (Electronic Article Surveillance) with RFID technology, offering multiple functionalities. Recently, some manufacturers have explored using RFID alone to replace EAS, enabling theft prevention and management functions.
In retail scenarios, RFID tags enhances operational efficiency by enabling functions such as inventory management, smart fitting rooms, stock locating, fast checkout, out-of-stock alerts, theft prevention, customer flow analysis, anti-counterfeiting, and supply chain management. Many apparel brands face challenges such as inefficient supply chains, rising labor costs, and unclear market trends. Traditional barcode-based management systems are time-consuming, labor-intensive, and space-inefficient. In contrast, UHF RFID technology addresses these issues by enabling automated production, warehouse management, brand management, and channel management, bringing significant convenience to the apparel industry.
Xinye RFID : Empowering RFID in Footwear and Supermarket Retail
Guandong Xinye Intelligent Label co, Ltd. a leader in RFID solutions, is driving innovation in the footwear and supermarket retail markets. With a focus on high-performance RFID tags and customized systems, Xinye empowers retailers to overcome operational challenges and achieve digital transformation. Their product lineup includes paper tags, woven labels, and hard-shell tags tailored to the unique needs of apparel, footwear, and grocery chains.
Xinyerfid’s solutions streamline inventory management, reduce labor costs, and enhance customer experiences through features like rapid stocktaking and smart checkout systems. For example, their UHF RFID tags enable real-time tracking across the supply chain, helping brands like fast-fashion retailers and supermarkets optimize stock levels and prevent losses. Additionally, Xinye collaborates with industry partners to integrate RFID with emerging technologies like IoT and AI, paving the way for smarter retail ecosystems.
Looking ahead, Xinye RFID is committed to advancing RFID adoption globally, particularly in developing markets like China, where cost-effective solutions can bridge the gap between manual processes and automation. By offering scalable, reliable, and affordable RFID technology, Xinye RFID is poised to shape the future of retail efficiency and profitability.
