Omnichannel Innovation with RFID and QR Code in Fashion Retail
Etam Group is a family-run french fashion and apparel manufacturer with over 4,000 salesrooms worldwide. Products include swimwear, sportswear, nightwear and underwear from the brands Etam, Maison Cent Vingt-Trois, Undiz, Livy and Yse. 1,200 new items are introduced to the market each year.
The company required a solution to transparently map the entire value chain. The control of the supply chain had to be optimized in order to adapt the omnichannel strategy. The supply chain includes product delivery, inventory management in the store, self-check-outs, returns and reverse logistics, e-commerce as well as the try@home-initiative. Both in-store inventory accuracy and the customer shopping experience should be optimized with an omnichannel solution.
Process Requirements
The digital inventory accuracy of the global inventory had to be optimized in order to offer items efficiently and to quickly deliver these to customers. Delivery times were to be shortened and inventory management streamlined to meet the new customer expectations imposed by the health crisis. Increasingly, however, customers are judging fashion brands not only on the availability of items, but also on their sustainable production. Transparent information for customers about the respective product is therefore a means for customer loyalty.
Objectives of the Etam Group
- Introducing the omnichannel strategy
- Digitization of the entire value chain
- Real-time inventory
- Transparent product information
- Increasing shopping experience and customer loyalty
The Etam Group Solution
The Etam Group uses RFID and QR code hangtags to identify all fashion items. Both technologies are integrated on one hangtag, eliminating the need for multiple tags. Tagging takes place immediately after production. In the supply chain and in stores, fashion items are tracked via RFID and accurate inventory visibility is achieved. Purchases and returns can be clearly tracked. The entire value chain from production to sales is digitized.
The RFID tagged items are the basis for the Order Management System, where all orders are tracked, orchestrated and executed. Lead time in preparing an order is reduced to be five times shorter on average. This strategy enables the Etam Group to increase supply by 8 to 20 percent.
The current inventory - made possible by RFID technology - is also the basis for the "try@home" customer service platform, with which Etam Group aims to adapt to changing shopping behavior. Up to five items are delivered to the customer for a test period of twelve days. During this period, the products are either returned to the stationary retailer or the invoice amount is debited from the customer's account at the end of the period. Returns are also recorded contactlessly via RFID hang tags.
Hardware & Software
- Avery Dennison Smartrac – UHF RFID Inlays
- Retail Reload – Retail Reload Software
Advantages
- Increased customer satisfaction and loyalty
- Improved omnichannel services
- Increased product visibility
- Improved customer experience
- Real-time inventory of all items
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Technologies
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