Can RFID shake China's fast-moving consumer goods industry?
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In 2004, Wal-Mart announced that its top 100 suppliers were required to use RFID tags on containers and pallets by January 2005. Wal-Mart's decision has undoubtedly given RFID a strong fulcrum, giving it the opportunity to shake the global logo market. One year passed, and until January 14, 2005, Wal-Mart received 57 suppliers with RFID-tagged goods. Although it did not achieve the expected plan, it was enough to make the world-renowned manufacturers and retailers have to Look at each other.
In 2005, Wal-Mart spokesperson Christi Gallagher said: "We plan to expand the scope of implementation geographically, and by October 2005, we will reach 600 stores and 12 logistics centers. As we work this year, some suppliers Will be able to label on the items outside the regulations. By the end of the year, we need the following 200 suppliers to label the boxes and pallets shipped to the logistics center. The deadline is January 2006. By the end of 2006, we All US suppliers are to be included in this initiative."
Wal-Mart has undoubtedly given RFID a fulcrum, but this time, we will wait and see how much RFID can shake the market.
With the rapid popularity of RFID in the global market, this technology has naturally entered the Chinese market, and is as hot as the international market. In the first half of 2005, there were as many as six or seven seminars and summits on RFID-themed topics (incomplete statistics). But whether the technology can mature in China, especially in China's fast-moving consumer goods industry can be quickly accepted, it is not as good as the surface.
Experts predict that the acceptance of the fast-moving consumer goods industry should be the key to the rapid development of RFID in China. The senior editor of the journal has had a conversation with the top executives of well-known RFID industry companies, trying to find the answer – can RFID shake the Chinese fast-moving consumer goods industry?
Wal-Mart China North Branch Logistics Management Department: RFID needs to break through two difficulties in the rapid application of China's fast-moving consumer goods industry
Ms. Jiao, head of the logistics management department of Wal-Mart China North Branch, said that although RFID technology has reached a high level of heat in China, most of China's fast-moving consumer goods industry is still holding a wait-and-see attitude toward RFID technology. Two: First, the price problem, although the price of RFID tags has dropped from the beginning of a few dollars to the current few cents, but in the supermarket industry with low gross margin, the application of RFID is still somewhat difficult, because it is currently in the supermarket. The commonly used bar code price is 0.02 RMB each, and the cost is far lower than the RFID tag. If the cost of RFID can be at least closer to the bar code in the future, it will be easier for domestic supermarkets to accept RFID technology. Second, the current domestic RFID standards have not yet been introduced, causing supermarkets to dare not “small move”. After all, applying RFID technology is a Projects that require high costs are required to have policy support from governments and relevant agencies when applying and selecting suppliers. If the supplier can further reduce the price of the RFID tag to reach the price acceptable by the domestic supermarket, and then the domestic related RFID policy is introduced, then the full implementation of RFID in the domestic supermarket is just around the corner. After all, the advantages of RFID technology are obvious to all.
Mr. Qi Junwu, CEO of Zebra Technologies Greater China: China's fast-moving consumer goods export products: the breakthrough of RFID
It is quite normal for the FMCG industry to focus on this technology, as 50% to 60% of Wal-Mart's top 100 suppliers have direct or indirect relationships with Chinese companies. In addition, Wal-Mart recently announced that it will invest in India, which undoubtedly brought great pressure on China's fast-moving consumer goods companies...
The FMCG industry will not be successful in implementing RFID technology. Therefore, I suggest that companies with export requirements should pay close attention to the development of this technology. Other companies that want to improve their management level through RFID technology should first improve their management and choose the technology that suits them at the right time...