In the security industry, source tagging is the process of embedding an Electronic Article Surveillance (EAS) label into the primary packaging or into the product itself at the point of manufacturer to protect the item from shoplifting. This advancement in retail security emerged over 20 years ago and today it continues to experience substantial growth.
According to the latest Global Theft Barometer, 63% of worldwide retailers are planning to maintain or increase their focus on source tagging. Regionally, the percentage of retailers maintaining or increasing their focus on source tagging is as follows:
The Mobile Disruption of Retail is Just Getting Started
This week's post summarizes some of the latest mobile research, discusses retail adoption patterns, and provides data driven hints where additional mobile disruption will emerge.
Global Mobile Industry Trends
Summarizing key data from the Boston Consulting Group (BCG) study on the growth of the global internet economy:
Mobile internet penetration worldwide has doubled from 18% in 2011 to 36% today; by 2017, mobile access will exceed fixed-line access, with 54% penetration compared with 51%.
Some 60% of the world’s population is now covered by 3G connectivity. The EU has 90% 3G coverage. The U.S. has 96% 4G coverage. Even Mount Everest is online—with 4G connectivity at 17,000 feet.
A Key Contributor to the Retail "Internet of Things"
January's USA National Retail Federation (NRF) trade event, several industry studies, and major deployment progress with key retailers point to a brighter future for RFID.
NRF 2015
RFID is a key driver of delivering a successful onmichannel retail strategy. As defined by Kurt Salmon at NRF 2015, "for consumers, onmichannel means a seamless experience that offers the same products, engagement capabilities, and level of service regardless of how, where, and why they interact with retailers. Common goals include: Increase revenue per customer; Increase purchase frequency; Expand consumer base; Increase market share; and improve consumer experience / satisfaction."
In New York this past week, NRF 2015 set new records with 300 speakers and over 34,000 attendees from 85 countries. A much needed third day was added for visitors to tour the nearly 600 technology exhibitors. The retail show energy was high and time passed extremely quickly.
Following are the top three landmark topics from NRF 2015:
Retail ROI Super Saturday Delivers Pride to the Industry
For the first time, I had the pleasure of attending the Retail ROI (Retail Orphan Initiative) Super Saturday and the experience was both moving and insightful. One of the speakers was Katie Meyler, an "Ebola Fighter" featured in the Time Magazine Person of the Year" issue. She delivered a very powerful message on what it is like to step into "Hell on Earth"
From Part 1, summarizing the initial five 2015 top 10 retail technology predictions: the internet of things in retail; omnichannel wave continues; inventory visibility & RFID; retail innovation deliver; and the mobile consumer journey.
Completing the top 10 list, following are the next five top 10 retail technology predictions for 2015.
The Rebirth of the Physical Store
In 2015, the role of the physical store will continue to evolve as a destination to experience the value of the brand. Much like a performance in a theater, the store itself will be a showcase for consumers to engage and understand the value of their purchase.
Technology will be a key driver of the continued store evolution. A recent study, pointed to the following four areas for transformation:
2014 was another year of disruptive transitions for the global retail industry. Legacy brands in key western markets struggled to maintain their historical leadership.
New business models emerged including the biggest online retail IPO in history. Technology continues to be at the center of the ongoing retail transformation.
Following is Part I of the top 10 retail technology predictions for 2015. Part II will be posted at the same time next week.
According to the latest Global Retail Theft Barometer 2013-2014, retailers lost $128.51 billion to retail theft. As indicated in the previously published video summary, the cost of retail crime to honest consumers averages $403 in USA, 184 Euros in Europe, 845 in Hong Kong Dollars in Asia Pacific, and $143 in Latin America.
The highest stolen categories included make-up products, fashion accessories, power tools, mobile accessories, wine and spirits. After multiple years of positive growth, can personally confirm that retailers are increasing the level of source tagging of high shrink consumer items. For apparel that source protection is extending to millions of dual technology EAS / RFID hard tags. One secure carrier for both shrink protection and inventory visibility. Welcome to the Internet of Things.
Top 10 Global Retail Shrink Takeaways - 2014 vs 2013 Infographic
A Lowe's video this week on their first deployment of a robot in a retail store to enhance customer service sparked this blog post. The narrator stated that shopping in a retail store has not changed in the past 100 years. On multiple levels he is correct.
Summarizing the fundamental changes to the retail industry in the last 100 years:
The invention of the supermarket which started the journey to retail sub-segmentation and self-service.
The cash register which introduced data as an important element to measure the success of the business.
Mass production and the computer which allowed manufacturers to drive production efficiencies, better information on what is selling, and lowered overall cost of goods.
The bar code as the first item level visibility technology and the consequential explosion of retail chains in major industrialized countries.
Globalization which proved that consumer markets do not have national boundaries.
Attending the India Retail Forum (IRF) a few weeks ago, absorbing the vibrant energy of the attendees, and listening to the insightful presentations was a great reminder that these are exciting transformational times for the global retail industry. As summarized in the last post, driven by consumer technology, retail disruption will increase and will include a few surprises from emerging markets such as India.
The India Retail Opportunity
The retail sector in India has reached more than $500 billion in industry sales. Organized retail which today is at 8% penetration will grow at more than 20% during 2012-2020. The retail industry has contributed consistently 18%-20% to the country's GDP. Food and grocery is the largest category with the retail sector with 60% share, followed by apparel and telecom.
Last week had a chance to speak to a large audience at the India Retail Forum in Mumbai. Chairing an industry panel discussion, my contributions included an opening presentation to a session titled "8th WONDER IN RETAIL - FUTURE PARADIGMS AND TECHNOLOGIES THAT HAVE THE POWER TO CARRY OUT DISRUPTIVE INNOVATIONS". Summarizing key insights from the opening presentation:
4th Megatrend Reshaping Global Retail
Post World War II, retail has been re-shaped by four megatrends. Technology has been the driver of retail power shifts through each of four megatrends. The fourth retail megatrend had its origins in 1992 when IBM released the first smartphone. It started transforming retail with Apple's smartphone around 2010.
Complementing smartphones are emerging deployments of smaller / smarter store sensors that will lead to customized, higher value, improved shopping experiences. All four megatrends have been about the availability of data and its effective utilization. The fourth megatrend places retail power in the hands of the consumer.
On the journey to learn something new, we travel to Montreux Switzerland. After the creation of a Jazz Festival by Claude Nobs in 1967, the founding of the world-class Mountain Studios inside the local casino in 1975, and favorable tax benefits, this quiet Swiss Lake Geneva (or Lac Léman) town became a destination to create music by legends such as Queen.
The earliest settlement in Montreux dates back to the late Bronze Age. The name Montreux comes from the Latin word monasteriolum, meaning "small monastery". Over hundreds of years, the local language changed this Latin word into Mustruel by 1215, and later into the modern name Montreux.
Deep Purple got the inspiration to the song “Smoke on the water” here. The rock group Queen with lead singer Freddy Mercury recorded 6 albums here. The studio was inside the casino that burned down in 1971 that inspired the Deep Purple memorable song.
For Freddy Mercury, Montreux became his second home; a place where he could escape the spotlight and focus on what he loved most: making music. Today, his legacy lives on through the iconic Freddie Mercury statue overlooking Lake Geneva in this picture.
Being a fan of classic rock, I truly enjoyed my visit to Montreux and blasted “Smoke on the Water” in my ear pods on arrival. This particular pose with Freddy was a personal reminder that life is short and never forget to let your guard down and have fun.
Psychologist Mike Rucker once wrote that "Happiness is a state of mind, but fun is something you can do. It doesn't require education, money or power. All it requires is intentionality. If happiness is a mirage, fun is your backyard oasis."
My oasis is celebrating life, always having a positive attitude, listen to all types of motivating music, and living each single moment as it was my last. At the top of my voice, I will continue to scream that we are all champions of possibilities that must keep on fighting towards our destined end. Rock on my friends.
Confidence in physical retail remains solid this year. More than 55% of survey respondents said they feel confident or very confident about brick-and-mortar performance in 2026, while only around 20% expressed concern. - From Place AI Read more
The Number 1 country continued lead reinforces a broader trend: countries with strong institutions, high trust, and robust social safety nets consistently rank highest in life satisfaction. - From Visual Capitalist
In the security industry, source tagging is the process of embedding an Electronic Article Surveillance (EAS) label into the primary packaging or into the product itself at the point of manufacturer to protect the item from shoplifting. This advancement in retail security emerged over 20 years ago and today it continues to experience substantial growth. 
disruption will emerge. 
January's USA National Retail Federation (NRF) trade event, several industry studies, and major deployment progress with key retailers point to a brighter future for RFID.
In New York this past week, NRF 2015 set new records with 300 speakers and over 34,000 attendees from 85 countries. A much needed third day was added for visitors to tour the nearly 600 technology exhibitors. The retail show energy was high and time passed extremely quickly. 
RFID; retail innovation deliver; and the mobile consumer journey.
2014 was another year of disruptive transitions for the global retail industry. Legacy brands in key western markets struggled to maintain their historical leadership. 
narrator stated that shopping in a retail store has not changed in the past 100 years. On multiple levels he is correct.
presentations was a great reminder that these are exciting transformational times for the global retail industry. As summarized in the last 
contributions included an opening presentation to a session titled "8th WONDER IN RETAIL - FUTURE PARADIGMS AND TECHNOLOGIES THAT HAVE THE POWER TO CARRY OUT DISRUPTIVE INNOVATIONS". Summarizing key insights from the opening presentation:
