There is currently a huge wave of RFID adoption going on in fashion and apparel retail. This growth is largely based on a business case that can be easily made: the need for accurate stock data is critical for today’s retailers; while at the same time the operating cost for deploying RFID has significantly decreased due to lower RFID tag prices that are now below three eurocents a piece.
Considering that the price was at ten eurocents only five years ago, this has made a big difference and significantly improved the business case. An even lower price would allow for adoption in other markets, like food retail. The question is now: is there any more improvement to be expected or has the bottom been reached?
Current price structure
To answer this question, we need to understand how the price of an RFID tag is currently set up. The price of an RFID tag consists of the following core components:
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