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Electronic Marketing
Theory and Practice for the 21st Century

by John O' Connor, Eamonn Galvin, Martin Evans

December 31, 2003
FINANCIAL TIMES / Prentice Hall
an imprint of PEARSON Education

Part III. MANAGING THE CUSTOMER RELATIONSHIP
7. Direct Marketing and Database Marketing
pages 198-204

Excerpt from The Benefits of RFID, Benetton Case Study

...The RFID technology offered Benetton a number of advantages, not the least of which was ease of use. Unlike a barcode scanner, which must be held directly in front of the item being scanned, employees with RFID receivers or shelves with the technology can scan entire boxes of items from a short distance. The technology would thus require fewer people to scan clothing items for inventory purposes. The tagging system could also save the company money by reducing theft. RFID tags can be programmed to set off an alarm if someone leaves a store without paying for an item. Similarly, the technology would make it harder for merchants to sell stolen or bootlegged versions of clothing in flea markets and other venues. Retailers who spot an item that they suspect is either stolen or illegally manufactured could check its origin using the tagging system.

"You can register the garment at the point of sale or register it through a computer", said Victor Chu, a fashion designer and technologist who runs his own company, MIL Digital Labeling. Chu, who has designed for apparel for fashion gurus Ralph Lauren and Tommy Hilfiger, said piracy of high-end clothing and accessories by Prada, Gucci and Louis Vuitton is a 'big problem', for which RFID tags may be a solution. He also was not alarmed by privacy concerns that might arise when customers leave retail stores with activated RFID tags. "It's a very local signal", Chu said. "You would have to have the equipment to use it. It's not like a GPS tag. A GPS tag would be totally different, and that's expensive for Benetton clothing."

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