Avery Dennison is the world’s largest supplier of UHF RFID tags. Retailers are increasingly merging online sales channels with physical stores making supply chains increasingly complex.Inventory accuracy is an important part of a successful omnichannel retail strategy and RFID technology is a potential solution.
The cost and technologies involved in deploying an RFID system have improved over the years making the technology more affordable.
Single digit penetration in the apparel sector and increased item-level tagging could drive demand for RFID tags.
Retailers moving towards omnichannel retailing could help drive RFID adoption which opens a growth opportunity for Avery Dennison (NYSE:AVY), the world’s biggest manufacturer of RFID tags.
Retailers are increasingly merging online sales channels with their physical store networks to better serve their customers, a concept known as “omnichannel retailing”. With e-commerce sales worth nearly US$400 billion, connecting stores, warehouses and customers’ homes, retail supply chains have become considerably more complex.