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Apparel Industry Expected to Enhance Growth Opportunities within RFID Market, Finds Frost & Sullivan


News provided by

Frost & Sullivan

30 May, 2012, 12:07 GMT

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- A prominent shift from pallet and case to item-level tagging leads to the projected success of the market

MOUNTAIN VIEW, California, May 30, 2012 /PRNewswire/ -- Radio-frequency identification (RFID) pilots used to ease the transition into item-level tagging within the apparel industry is expected to drive demand for this market. The expanding implementation of RFID provides complete automation of various processes involved along the supply chain. This results in better inventory visibility, greater supply chain management, improved sales, better customer service, and negates the impact of counterfeit products. In addition, mandates from large retailers to their suppliers to implement item-level tagging are also driving the growth.

New analysis from Frost & Sullivan (http://www.electronics.frost.com), RFID Market in Apparel Supply Chains, finds that the market earned revenues of $420.6 million in 2010 and estimates this to reach $1478.1 million in 2017, with a wide-spread implementation of RFID technology into the apparel industry globally.

If you are interested in more information on this research, please send an email to Jeannette Garcia, Corporate Communications, at jeannette.garcia@frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

Availability of products in the correct size and color is a perennial issue for apparel suppliers. This is caused by the lack of information and communication along the whole apparel supply chain. As this has a direct bearing on customer service levels, apparel suppliers are opting for RFID technology in order to manage their business processes.

"The need for business process management is expected to drive demand for RFID within the apparel industry," said Frost & Sullivan Research Analyst Ram Ravi.

Customers in the apparel industry are generally conservative toward the adoption of new technologies. This can be attributed to several factors including the price, lack of knowledge, lack of business case and understanding about the technology. Although RFID in apparel has developed over some years, several customers are still unaware of the technology and its benefits.

"A key aspect behind retailers' apprehension is the cost associated with the implementation of the technology, as they operate on low-profit margins," said Ravi. "Suppliers need to provide a wide array of products and solutions catering to the individual needs of their customer and also provide training and services such as technical consulting to educate their customers about the benefits of the technology."

RFID Market in Apparel Supply Chains is part of the Electronics Growth Partnership Services program, which also includes research in the following markets: apparel, passive RFID and active RFID. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us: Start the discussion

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Subscribe: Newsletter on "the next big thing"

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RFID Market in Apparel Supply Chains
N953-11

Contact:
Jeannette Garcia
Corporate Communications – North America
P: +1-210-477-8427
E: jeannette.garcia@frost.com

http://www.frost.com

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