India: Indian fashion brands are embracing RFID technology to enhance supply chain transparency, improve inventory accuracy, and meet rising sustainability demands, moving from viewing it as a cost to a strategic growth tool, says Avery Dennison’s Rishi Kapoor.
The fashion industry is at the brink of a significant transformation as it adapts to modern challenges, including the pressures of sustainability, compliance, and cost efficiency in a climate of heightened consumer expectations. Key to navigating these changes is the adoption of advanced technologies, particularly Radio Frequency Identification (RFID), which has emerged as a critical tool for brands striving to optimise supply chains and enhance customer experience.
Rishi Kapoor, National Sales Head for Avery Dennison in India, emphasised the essentiality of technology in the fashion sector during a recent conversation. He noted that businesses that view technology as an indispensable asset — rather than a mere afterthought — will better position themselves in this competitive landscape. Kapoor remarked, “Those who still treat tech as an afterthought are already falling behind,” signalling the imperative for brands to integrate digital systems into their operations.
Central to this technological shift is traceability, which Kapoor identifies as vital for building consumer trust and ensuring compliance in an era of increased regulatory scrutiny. With Avery Dennison’s solutions managing over 28 billion items across various sectors, including fashion and retail, they are pioneering a shift toward end-to-end traceability. Their platform, Optica, combines smart labels with the atma.io connected product cloud, facilitating visibility throughout the supply chain. This allows brands to track raw materials from origin to final product, ensuring compliance and sustainable practices.
The rapid advancement of RFID technology has become a game-changer for manufacturers facing increasing operational pressures and the need for transparency. Many Indian apparel brands are now exploring RFID not as an added expense but as a means to improve logistic efficiency and control inventory more effectively. This sentiment is echoed by recent studies, indicating that 58% of decision-makers in warehouse management plan to deploy RFID by 2028 to enhance inventory visibility and reduce instances of stockouts.
Moreover, leading retailers like Azorte Reliance and Decathlon India have successfully integrated RFID to streamline operations, connecting it with self-checkout systems and enhancing customer engagement through interactive displays. This mirrors a broader trend observed in the Indian retail landscape, where the digital transformation driven by RFID technology is visibly reshaping operational processes.
Kapoor also highlighted the potential for on-demand labelling solutions to enhance factory efficiency. By providing access to custom labelling without upfront equipment investment, Avery Dennison is facilitating greater flexibility in manufacturing. The organisation’s approach alleviates the financial burden on factories by using a volume-based agreement, where costs are incurred only for consumables rather than the technology itself. This model aligns well with the shifting mindset among companies, which previously saw RFID as an exogenous cost rather than a strategic investment.
The growing awareness among brands about the necessity of RFID for real-time data collection and operational agility is paving the way for deeper strategies for operational enhancements. For instance, one prominent fast fashion retailer has transitioned from merely leveraging RFID in their warehouses to rolling it out in their retail environments. This strategy has improved inventory accuracy and enhanced customer service.
As the fashion industry continues to evolve, the future looks promising for RFID technology, which stands to greatly enhance supply chain visibility while also championing sustainability initiatives that are increasingly critical to consumer loyalty and brand integrity. The journey from viewing RFID as a cost perspective to embracing it as a tool for efficiency and growth exemplifies the dynamic nature of the industry and its response to both market demands and technological advancements.
Given the ongoing shifts, it is clear that those embracing RFID technology not only position themselves advantageously for the future but also contribute to a more sustainable and transparent fashion landscape.
Reference Map
- Avery Dennison interview with Rishi Kapoor on RFID and traceability.
- Insights into RFID adoption in India’s retail sector.
- Academic and industry perspectives on RFID benefits in fashion retail.
Source: Noah Wire Services
