Can RFID leverage China's FMCG industry

In 2004, Wal-Mart announced that it requires its top 100 suppliers to use RFID tags on containers and pallets by January 2005. Wal-Mart's decision undoubtedly gave RFID a strong fulcrum, giving it the opportunity to leverage the global logo market. And one year passed, until January 14, 2005, Wal-Mart received 57 RFID-tagged goods from suppliers. Although it did not achieve the expected plan, it was enough to make the world-renowned production companies and retail companies have to Take a look at each other.

In 2005, Walmart spokesman Christi Gallagher said: "We plan to expand geographically to reach 600 stores and 12 logistics centers by October 2005. As our work progresses this year, some suppliers Will be able to label on single products outside the regulations. By the end of the year, we need the 200 suppliers below to label the containers and pallets shipped to the logistics center, the deadline is January 2006. By the end of 2006, we All US suppliers will be included in this motion. "

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

With the rapid popularity of RFID in the global market, this technology has naturally entered the Chinese market, and it is in full swing like the international market. In the first half of 2005, there were as many as 6 or 7 seminars and summits with the theme of RFID (incomplete statistics). However, whether the timing of the development of this technology in China can be mature, especially in the fast-moving consumer goods industry in China can be quickly accepted, as if the situation is not as good as it seems.

Experts predict that the acceptance of the FMCG industry should be the key to the rapid development of RFID in China. The senior editor of this journal had a dialogue with the senior executives of well-known companies in the RFID industry, trying to find an answer: Can RFID leverage the Chinese fast-moving consumer goods industry?

Wal-Mart China's North Branch Logistics Management Department: RFID in China's fast-moving consumer goods industry needs to overcome two difficulties

Ms. Jiao, the head of the logistics management department of the North Branch of Wal-Mart China, introduced that although RFID technology has reached a high level of popularity in China, the vast majority of China's fast-moving consumer goods industries still hold a wait-and-see attitude towards RFID technology. The main reasons are Two: One is the price problem. Although the price of RFID tags has dropped from a few dollars to a few cents now, but in a supermarket with a very low gross profit margin, the application of RFID is still difficult because it is currently in supermarkets. The commonly used bar code price is 0.02 yuan each, and the cost is much lower than RFID tags. If the cost of RFID can at least be closer to the bar code in the future, it will be easier for domestic supermarkets to accept RFID technology; Second, the current domestic RFID related standards have not yet been introduced, so that supermarkets dare not act rashly. After all, the application of RFID technology is a Projects that need to pay high costs require the support of the government and relevant departments when applying and selecting suppliers. If suppliers can further reduce the price of RFID tags to reach the prices acceptable to domestic supermarkets, and the introduction of relevant domestic RFID policies, then the full implementation of RFID in domestic supermarkets is still just around the corner. After all, the advantages of RFID technology are obvious to all.

Mr. Xi Junwu, CEO of Greater China, Zebra Technology Corporation: China's FMCG export products: RFID breakthrough

It is quite normal for the FMCG industry to pay attention to this technology, because 50% to 60% of Wal-Mart's top 100 suppliers are directly or indirectly related to Chinese companies. In addition, Wal-Mart recently announced that it will invest in procurement in India, which undoubtedly put a lot of pressure on China's FMCG companies ...

The FMCG industry will not be smooth in the process of implementing RFID technology. Therefore, I suggest that those enterprises 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 own management and choose the right technology at the right time ...

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