Report: Fashion companies to drive growth in RFID market

A new report out this week from ABI Research predicts that the need for item-level RFID solutions will help drive large growth in the RFID market.

According to the report, “RFID Item-Level Tagging in Fashion and Apparel,” global sales of item-level RFID systems to clothing companies will triple in size over the next five years, eventually reaching $125 million by the end of 2014. Analysts say the surge in the demand for item-level RFID solutions can be attributed to the economic downturn and the ability that these systems give companies when it comes to reducing labor costs and increasing sales through inventory visibility.

“RFID’s use in the apparel sector represents the greatest near-term opportunity for business improvements and fewest impediments to growth in the retail industry,” said ABI Research RFID practice director Michael J. Liard in a prepared statment. “A quick, demonstrable ROI and key business metrics for adoption have been clearly established and the results of nearly all evaluations conducted have been compelling. As a result, market activity is brisk and promising, especially among early-adopter specialty apparel retailers.”