The current outlook for the retail sector is strongly influenced by factors such as constant changes in consumer habits, rising production costs and growing concern about the transition towards more sustainable models.
In order to remain competitive, retailers are increasingly focused on digitalisation. According to KPMG’s “Retail Outlook in Spain in 2024” report, 73% of retailers have identified digital transformation as a strategic priority. This is due to the need to integrate physical stores with digital channels, improve inventory control and better understand customer needs.
In short, as Alejandro Ortiz, CEO and co-founder of IderoTech, states, “Anticipating and responding to user priorities is the best way to generate value. And, to do so, RFID technology solutions are set to transform the fashion industry. The challenges facing the sector are very different, but the flexibility of this tool allows solutions to be offered in all types of industries. The information obtained with this labelling allows us to make the most of internal data to comply with environmental responsibilities and always be in tune with consumer demands.”
The challenges of the Retail of the future
Technology plays a key role in strengthening these competitive capabilities, and in this context, the Spanish company IderoTech, specialized in RFID, has highlighted three major challenges in the Retail sector and how this technology can provide solutions:
- Supply chain optimization to reduce costs
With an increasingly demanding market, retailers are looking for ways to minimize costs, especially in inventory management. According to KPMG, 60% of retailers are already adopting technology that optimizes stock control and rotation. In addition, consumers demand greater transparency about the products they buy, which is also driving improvements in product traceability, something essential in an environment of increasing regulation.
- Accelerating the ecological transition
Traceability not only improves efficiency in the supply chain, it also allows us to know the environmental impact of each product, which is essential in a context where consumers are increasingly demanding in terms of sustainability. A McKinsey study reveals that two-thirds of brands are lagging behind in their environmental commitments, and 40% have seen an increase in their emissions despite their efforts. Having accurate data on the carbon footprint and life cycle of products is crucial to making progress in this area.
Technological transformation, ecological transition and supply chain improvement: the challenges of the Retail of the future
- The challenge of omnichannel and the ‘phygital’ world
Integration between physical and digital channels has become a priority. The adoption of technology is accelerating this convergence, with 70% of retail leaders committing to implementing tools that facilitate omnichannel. This means offering consumers a seamless experience, regardless of whether they shop online or in a physical store, and ensuring the correct synchronization of inventories between both channels.
- RFID as a key solution
RFID technology is emerging as a comprehensive response to these challenges. This labelling system, which is intended to replace the traditional barcode, offers comprehensive tracking of products, from their origin to the final point of sale. This not only improves accuracy in inventory management, with a 25% increase according to McKinsey, but also facilitates compliance with European regulations which, from 2030, will require garments to include a digital “passport” with detailed information on their composition and sustainability.
In addition, RFID enables businesses to reduce their carbon footprint and inventory costs by providing real-time information on the location of products, which also improves the customer experience by ensuring they can easily access the information needed to make informed purchasing decisions.
