RAKO Security-Label

RAKO Security-Label: Exclusive Fashion Retailers with RFID Are Strong for the Future

Articles | By RAKO Security-Label | 30 June 2014
Fashion boutiques make shopping streets and pedestriant precints attractive. Appealing store design and a carefully selected product range animate customers to make a purchase. RFID helps to plan and ensures product availability with up-to-date stock data. Fashion boutiques make shopping streets and pedestriant precints attractive. Appealing store design and a carefully selected product range animate customers to make a purchase. RFID helps to plan and ensures product availability with up-to-date stock data.

RFID for Fashion Retailers

Departure apart from the Mainstream

„Being an SME offers enornous advantages. This fact also applies to competition in retail. Fashion retailers with only a few stores have specific potential that they sometimes underestimate themselves. Cleverly using the individual rapidity and flexibility, multiplied with the right solution, means getting the required strength for the market“, says Michael Hedtke, Project Management Rako Security Label. Together with Thorsten Wischnewski, Divisional Director RFID, he explains how small and medium-sized fashion enterprises can prepare themselves for the future with targeted process optimization and why it is now an important moment to invest in an RFID solution.

Michael Hedtke, Project Management, Rako Security Label, in an interview with Anja Van Bocxlaer, „RFID im Blick“

What Are the Means of Success for Fashion Retailers?

Michael HedtkeMichael HedtkeThere is an atmosphere of change among retailers in the fashion sector: „Small and medium sized enterprises (SME) are getting started and bring their company to the future“, reports Michael Hedtke, Project Manager Rako Security Label. The requirements for this future are clearly defined: „Appealing store design, competent customer service, and a well-assorted product range are part of the status quo for shopping in stationary retail. No online shop and no chain store will replace a well-stocked charming fashion boutique. However, if the desired article is out of stock, then it is as good as certain that the customer will migrate to one of the competitors.“ In order to avoid this and meet the high demands in the intense competition, the path leads towards optimizing internal processes. RFID for up to date stock data and theft protection became more and more often an important move within the retail strategy, particularly for exclusive fashion stores and boutiques, says Hedtke.

Focussing on Internal Processes

Exploiting added values in fashion retail with RFID does no longer depend on upstream processes in the value chain. „Out customers can use the technology independent of suppliers or the pressure of cross-company processes“, explains Michael Hedtke. Scalable solutions for fashion retailers with a few stores put the focus on safeguarding the investment and up to date stock data. „This is what makes RFID attractive for small and medium-sized retail enterprises. Implementing an according solution first of all means listening to the customer, analysing his processes, and creating an elaborate concept. The technical implementation of the solution is a quick process then.“

Taking Advantage of Flexibility in a Strategic Way

Labeling goods, implementing the technology accross all stores – what means high effort and also takes a long time for decision-making for big retailers can be quickly and uncomplicatedly realized by SMEs. With clear structures they benefit from short reaction times and flexibility. Theft protection was often the trigger for the installation of an RFID-system, reports Michael Hedtke. After the implementation, effective article security then often turned into a positive side effect. „When fashion retailers think about stocktaking, they think about shutting down their store for a whole day. Using RFID, this is rather a matter of an hour without even having to touch the garments, which means it is also possible during operation. Exact inventory with few employees and short intervals – for retail companies in a sector that is based on product availability, this is the key to success.“

Staring is Easy

What clothes are on the shop floor, how big is the stock in the warehouse, what has to be ordered? „Reliable and up-to-date data are basic building blocks of sustainable business economics. Not only with regard to a well managed range of articles. Sales rates provide safety for planning and calculation“, explains Michael Hedtke, however he adds: „Achieving this reliability and up-to-dateness with little effort is only possible with RFID. Many people still think that implementing the technology meant a huge investment, but things have changed. For instance, we offer starter packages that provide customers with a system covering the major internal processes for less than 10,000 Euros.“

ROI Already with 60 Percent Tagged Articles

A handheld reader for bulk detection of articles in shelves and on stands in a few seconds, a table reader for deactivation and reactivation of EAS and handling the checkout process in combination with the existing checkout system: Both readers allow to create an RFID-based shop structure, enhanced by a Hoverguard ceiling antenna with a read range of two meters for theft protection. Moreover, the starter package includes a detacher and a selection of 200 RFID tags and labels of different types for different labeling options.

Michael Hedtke: „We want to encourage potential customers in stationary retail to go ahead with innovative solutions. This is why we offer this cost-efficient starter solution. At more and more examples we see that the integration of RFID leads to success. Depending on the size of the company, the ROI can already be achieved with 60 percent tagged articles.“

Last modified on Thursday, 28 August 2014 09:46
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