Nowadays, not only retailers involved in RFID pilots or rollouts are increasing, but also the scope of those projects is changing. At the dawn of the technology, RFID usage was limited to the supply chain area; nowadays, finally the border has been crossed: RFID has started to be used within the store with the final goal being to better engage with customers and increase the overall shopping experience. This is the case of the marketing campaign that was set up for Starhub Online Music store.
Even if the RFID technology still needs to be "tamed" and its implementation needs to be evaluated from both a process and economic perspective, gone are the days when the RFID technology was considered neither profitable nor obsolete. Recently, things seem to have taken a new turn: RFID technology is being either tested or implemented by an increasing number of retail companies worldwide. Examples of merchants involved in such projects are: Macy's, J.C. Penny, Inditex (a spanish retailer - owner of Zara), Valdac Global Brands (a Brazilian fashion chain), Gruppo Èxito (one of the largest retailer in Colombia), and many others.
RFID technology allows retail companies to identify and trace objects directly and continuously. Hence, retailers can effectively and efficiently track the entire circulation process of items from suppliers to end-users and to have a real-time visibility and traceability of their inventory. However, for the foreseeable future major implementations of RFID-based systems will not be limited around the supply-chain…
RFID can be used also as a key technology for enabling genuine and improved customer experiences within the omnichannel perspective. This is the case of Starhub Online Music store: the music portal - in order to bring on the next level the engagement with their customers- set up with the help of a media agency a marketing campaign in partnership with some major fashion brands. Starhub decided to fit out state of the art fitting rooms in 42 stores located in Singapore, where the customers' experiences are customized according to their preferences and characteristics. In other words, some garments were tagged with RFID tags and RFID readers were installed into some fitting rooms. Hence, when a customer goes into the fitting room to try one garment on, the RFID reader reads the information uploaded into the tag - such as the type of garment, the style, etc. - and it starts to reproduce through some directional speakers a music track from the StarHub Music store that matches the corresponding fashion style (more than 100,000 songs covering a variety of 16 musical genres have been used). Once a customer has decided to get the purchase done, a SMS is sent to him with information around the previously listened song.
I know that description may not sound very appealing and exciting: that is why I am providing you with the link of the the campaign overview. http://www.youtube.com/watch?v=ZimcuZZJ2D0 Check this out!
Starhub Online Music store represents a good example of how retailers can exploit (RFID) technology to improve the overall customer experience within their store. It seems that the path toward the next generation of stores have been undertaken...
...Please, welcome the omnichannel store!