RFID for Fashion. What are the benefits?

Satisfying the rational and emotional needs related to the product is no longer sufficient. Increasingly, the consumer seeks an exclusive and trustful relationship with the brand he chooses.

However, this connection can be weakened by two phenomena:

  • Counterfeiting: it is the imitation of a product, through the unauthorized replication of the original product. According to estimates by the Bureau of Confartigianato, worldwide, fake fashion is worth €66.3 billion and 32% of total counterfeit goods.
  • Gray market: it is the flow of goods through channels other than those authorized. In 2017, the parallel import market reached €17 billion, and it is estimated that it will reach 36 billion by 2022.

The speech, however, is not only economic but also ethical because it impacts on the number of jobs threatened by unfair competition that undermines the sales and the brand awareness. In addition, counterfeiting may also pose a risk to the health of the consumer since counterfeit products are manufactured by circumventing the rules aimed at safeguarding the safety and health of consumers and are not subject to controls by the competent authorities.

How does the fashion industry react to these threats?

Fortunately some of the most important fashion companies, in order to ensure the authenticity and reliability of their brands, have implemented the RFID technology.

Image 1. RFID inside clothes labels

In particular, companies have begun to insert, within their articles, chip labels, in which are stored a whole series of information on the origin, the composition and the shipping route of each individual product. This information is added to the data on size, color, and model. This allows fashion brands to verify, at any time, the authenticity of the products, by subjecting them to scanning, but also to monitor their traceability along the entire supply chain and in the event of intercepting any anomalies that may arise.

Image 2. How does RFID work?

Some interesting data about RFID in fashion

To better understand the further advantages of RFID technology applied to the fashion industry, here are some interesting facts that emerged from the research “Measuring the Impact of RFID in Retailing“, conducted by GS1 in collaboration with Efficient Consumer Response (ECR). The survey, carried out in February 2018, was conducted by interviewing 10 large companies operating in the apparel retail that have invested in RFID technologies.

The results that emerged were really interesting and positive. On average, the companies participating in the research recorded:

  • Increase sales between 1,4 and 5,2 billion euros
  • Reduction Stock between 2% and 13%
  • Saving 4% of Staff Costs
  • ROI instead of 3 years was achieved in 2 years


Inventory Accuracy


Stock Availability



In light of the facts, the advantages deriving from the use of RFID technology are now clear. So the question is: what are you waiting for, brand owners and fashion retailers?

Do you want the solution to combat counterfeiting and gray market? We have what’s right for you → brand protection


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