Add to favorite
 
Subscribe to our Newsletters Subscribe to our Newsletters Get Daily Updates RSS
russian visa


Media Markt Pioneers in Retail RFID
November 20, 2012 09:59

Media Markt retail chain is set to become the first retail chain in Russia to introduce the smart store technology in its operations.

The technology has been there for quite some time now, but largely ignored by the industry because of the high costs and complexity of implementation.

It's based on radio frequency identification, or RFID, which helps to track any item throughout its life cycle – from the time it's produced and ready to be shipped to the moment when consumers leave the shop with their basket or trolley, enabling easy self-checkout. It’s also been argued that RFID has serious advantages over existing barcodes allowing products not to be in sight to be counted.

It has, however, raised privacy concerns with some saying corporations will now be able to spy on its buyers, but there is still no conclusive evidence that smart tags could be read far beyond the scanners’ reach inside the store.

So far, the technology has been employed for inventory purposes by libraries, medical institutions, museums, and some others. RFID tags are also part of our security ID badges at work.

Wal-Mart is widely considered to be the first in the retail industry to adopt the electronic product code, with studies suggesting the chain can save up to $8.4 billion per year and reduce Out-of-Stocks by 30 percent for products selling between 0.1 and 15 units a day.

The Media Markt will launch their pilot project in mid-November for accessories (keyboards, earphones, cases) and multimedia (music, game and video CDs, software, books) categories, Bjorn Graiff, IT and BPM director at Media Saturn Russia, told the Vedomosti daily.

"We picked the categories that are difficult to handle and have a high theft rate," he said.

12,000 SKUs, or stock-keeping units, will be tagged as part of the pioneer project, which is 30 percent of the total stock. RFID scanners will be installed in the warehouse, on trade floor, and at the exit so that the retailer can track the movement of their stock at any time and have accurate figures of the items on the shelves to reduce the out-of-stock time.

The introduction of RFID tags in one store has cost Media Markt 164,000 euros, but further expansion will bring down the costs to 100,000 euros per store.

X5 Retail Group, which pledged its commitment to the ‘stores of the future’ back in 2010, has worked with Russia's Rusnano and Sitronics companies on elaborating the project plans to catch up with Media Markt in mid-December.

"The cost of the RFID tags is the greatest barrier to their broad use. Once RFID in retail trade begins on a large scale, the cost of the tags will decline and RFID will be extended to other economic sectors. With project success, Russia will become another large market for RFID tags, and that will give Russian microelectronics producers the opportunity to enter an arena where sales are forecast at up to 50 billion tags per year,” Rusnano Deputy CEO Andrey Malyshev explains.

More info on this joint project can be found here.

 

 

 

A TV report about privacy concerns related with the RFID technology.


Sources: http://www.vedomosti.ru http://en.rusnano.com http://www.youtube.com http://www.vimeo.com 

Author: Mikhail Vesely

Tags: Russian business Media Markt retail chains RFID Russian science 

Next Previous

You might also find interesting:

UAE Expresses Interest In Floating Cosmodrome Pussy Riot Comment Wrong, Admits Russian TV SPIEF 2014: Multi-Billion Contracts Despite Political Pressure Changes Of Microfinance Market Medical Cure For Cancer May Appear In Two Years





comments powered by Disqus




Comment on our site


RSS   twitter   facebook   submit

Bookmark and Share

Russian Parliament in Action

search on the map
TAGS:
Exhibitions in St. Petersburg  Photo Exhibitions  Russian Literature  Russian shops  Exhibitions Sales  Russian tourism  Russian tennis  Tourist Attractions  Igor Sechin  Semyon Farada  Design  Ration Cards  Painting  Moscow  Russian business  Russian exhibitions  Exhibitions in Moscow  Rosturizm   children  Kostroma  European Parliament  medicine  Belarus  Mercedes-Benz Fashion Week Russia  Russian opera singers  Russian opposition activists  VTB  Tourism Barents Summit  Rock Music  Climatic Change  Russian history  alcohol market  Russian legislation  Chelyabinsk meteorite  Leonard Cohen  Archeology  Russian cities  Krasnoyarsk Museum Biennale  Nikolay Millioti  Rosoboronexport  EU sanctions  Auchan  Elections 2012  car  Russian Rock Music  Satellites Killer  Oxford Catalysts Group  Russian Cinema  computing  Vakhtangov Theatre 


Travel Blogs
Top Traveling Sites