Item-Level RFID Can Help Stop Counterfeiting
From a customer’s point of view, the benefits of the growth in ecommerce are numerous, and the ability to cross geographic boundaries by just tapping their screens is incredibly convenient. However, this has also brought with it the potential for counterfeit goods to be passed off on unsuspecting consumers, which can be a huge challenge for retailers and brands to overcome.
According to the Organization for Economic Cooperation and Development, the American counterfeit goods market exceeds $1 trillion per year. This figure is based on the value of the goods that are seized annually by law enforcement agencies.
It can be impossible for customers to distinguish between authentic goods and the “fomnichannel”, or fake omnichannel, which means people can spend their money on fake products without even realizing it. In some cases, the worst outcome is simply wasted money, but in extreme cases, counterfeit products could be toxic or cause injuries.
Counterfeiting is also bad for brands and retailers. Once they lose the trust of consumers, even if it’s through no fault of their own, it can be extremely difficult to earn it back. Brands that have been targeted by counterfeiters can see irreparable damage to their reputations.
How RFID Can Help
For many retailers and brands, protecting the authenticity of their products can be as simple as implementing Electronic Product Code (EPC)-enabled RFID tags to individual items. EPC-enabled RFID tags with each product’s unique serial number and other information about where it was manufactured can go a long way toward deterring imitations.
As an added benefit, RFID can help improve inventory visibility to keep shrinkage, stock-outs and overstock to a minimum, reducing yet another $1 trillion-per-year problem for retailers around the world. In fact, Auburn University’s RFID Lab says that the increased item availability that is facilitated by RFID use can drive sales anywhere from 2 percent to 20 percent for the retailers that use it, making it a very sound investment.
This blog post was based off of an article from Apparel. View the original here.