February 05 2021 Technology

RFID is the new reality of retail and trend in the cosmetics sector


With the increase in e-commerce sales and the need to offer secure purchases to consumers and efficient logistical control, companies are looking for alternatives to "contactless" commerce

The new reality brought by Covid-19 has accelerated technological processes and has required adaptations from the entire retail chain in Brazil and worldwide. Among the measures to be adopted in this sense, "contact less" sales announce a trend to be followed by companies. Several sectors, such as cosmetics, have found in the RFID system Radio Frequency Identification Tags the fundamental technology to accompany the change in consumer behavior, which mainly seeks security and ease in the act of purchasing.



By allowing the wireless transfer of electronic tag data to a compatible reader, such as the NFC reader - wireless communication technology present in several smartphones. Different from Bluetooth and Wi-Fi, because it requires the approximation of two devices - RFID uniquely identifies each product. This allows companies to offer their customers better shopping experiences, such as payments made directly from smartphones and mobile check and go solutions, to facilitate contact less purchases, closing payment queues and, consequently, agglomerations.

"This is a new way of interacting with products. From the moment that technology adds new experiences, in a virtual way, it is possible to meet consumer expectations regarding safety and hygiene, since the products can be accounted for without the need for touch or manual scanning or even testing a makeup in a mirror of augmented reality, digitally, in real time. The new payment methods also facilitate and make the purchase process more effective. These and other attributes make RFID is one of the smartest solutions on the market ", analyzes Fabiana Wu, RFID manager at Avery Dennison, global company, specialist in developing materials and solutions for labels and self-adhesive labels.

One of the major barriers to the use of RFID in the cosmetic sector was the need for sufficiently small inlays, which were compatible with product packaging, such as lipsticks and other makeup items, which usually have a compact presentation. "Today, we have already overcome this challenge, as well as improving the solutions so that they do not suffer interference in metal packaging. In this sense, we can mention the On-Metal technology, which, among other resources, allows the application of flexible tags for curved surfaces, high performance. on metallic surfaces and containing liquid, and reading distance of more than five meters ", adds Fabiana.

RFID technology can also be applied to improve efficiency and increase visibility throughout the cosmetic industry's supply chain. Its use allows to meet the growing demand for products, control inventories, avoiding the scarcity of items and reducing the inventory time of stores, in addition to optimizing shipments with cost reduction, monitoring of deliveries in real time and route planning, with a tracking end-to-end logistics.

An example of a successful case of using RFID in the cosmetic sector happened on the West coast of Canada, in the deposit of a brand of organic luxury products, sold exclusively in spas, salons and a series of carefully evaluated e-commerce sites. From the moment that the items started to be marked with a label shipped with RFID, sales of these products in the parallel market - a major problem for the brand, mainly due to counterfeits - fell considerably.

With technology developed by Avery Dennison, a global company specializing in the development of materials and solutions for labels and self-adhesive labels, the beauty company was able to control its sales and monitor unauthorized channels for offering its products. As a result, this skin care brand has reduced its distributors by about 40% and, all of this, without loss of revenue.
The successful use of Canadian branded RFID proves that technology is a powerful tool to help regain control of supply chains, giving beauty companies the ability to access data about where each item is, with inventory accuracy of up to 99%.

The successful use of Canadian branded RFID proves that technology is a powerful tool to help regain control of supply chains, giving beauty companies the ability to access data about where each item is, with inventory accuracy of up to 99%.  

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