Can RFID Inspire China's FMCG Industry

In 2004, Wal-Mart announced that it requires its top 100 suppliers to use RFID tags on boxes and pallets before January 2005. This decision by Wal-Mart undoubtedly gave RFID a strong fulcrum, giving it the opportunity to shake up the global identity market. One year passed. Until January 14, 2005, Wal-Mart received 57 RFID tags from suppliers. Although it did not achieve the expected plan, it was enough to make world-renowned manufacturers and retailers obliged. Look admirably.

In 2005, Walmart's spokeswoman Christi Gallagher said: “We plan to expand our geographic scope and reach 600 stores and 12 logistics centers by October 2005. With the progress of our work this year, some suppliers It will be able to label products outside of the regulations, and by the end of the year, 200 of our suppliers below will be required to place labels on containers and pallets destined for logistics centers. The deadline is January 2006. By the end of 2006, we will All US suppliers must be included in this motion."

Wal-Mart undoubtedly gave RFID a fulcrum, but this time, we can wait and see how much market RFID can shake.

With the rapid popularity of RFID in the global market, this technology has naturally entered the Chinese market and is in full swing with the international market. In the first half of 2005, there were as many as six or seven seminars and summits on the subject of RFID (incomplete statistics). However, whether the timing of the development of this technology in China can mature, especially whether the fast-moving consumer goods industry in China can be quickly accepted, is not as good as the surface.

Experts predict whether the fast-moving consumer goods industry's acceptance should be the key to the rapid development of RFID in China. The senior editor of this magazine had a dialogue with high-level leaders of RFID companies and tried to find such an answer. Can RFID stimulate China's FMCG industry?

Wal-Mart China North Division Logistics Management Department: RFID applications in China's FMCG industry still need to break through two difficulties

Ms. Jiao, who heads the logistics division of the North Division of Wal-Mart China, said that although RFID technology has reached a high level of popularity in China, the vast majority of China's fast-moving consumer goods industry still holds a wait-and-see attitude toward RFID technology. Two: First, the price issue, although the price of RFID tags has dropped from the first few dollars to the current few cents, but in supermarkets where the gross profit margin is very low, the application of RFID is still somewhat difficult because it is currently in supermarkets. The commonly used bar code price is 0.02 RMB each and the cost is much lower than RFID tags. If the cost of RFID can be at least closer to the bar code at a later time, it will be easier for domestic supermarkets to accept RFID technology. Secondly, the relevant standards for domestic RFID have not yet been introduced, causing supermarkets to dare to “flittle their actions”. After all, RFID technology is an option. The need to pay for high-cost projects requires the support of government and related departments when applying and selecting suppliers. If the suppliers can further reduce the price of RFID tags and reach the prices that domestic supermarkets can accept, and the relevant domestic RFID policies are introduced, then the full implementation of RFID by domestic supermarkets is just around the corner. After all, the advantages of RFID technology are obvious to all.

Mr. Junjun Wu, CEO of Zebra Technologies Greater China: China's Fast Moving Consumer Goods Export: A Breakthrough in RFID

It is normal for the FMCG industry to focus on this technology, because 50% to 60% of Wal-Mart's top 100 suppliers have direct or indirect relationships with Chinese companies. In addition, Wal-Mart has recently announced that it will invest in India, which undoubtedly brings great pressure to China's fast-moving consumer goods companies...

The fast moving consumer goods industry will not be easy in implementing RFID technology. Therefore, I suggest that those companies with export requirements should pay great attention to the development of this technology. Other enterprises wishing to improve their management level through RFID technology should first improve their own management and choose the right technology at their own right...