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Future trends of the RFID industry

(1) Logistics and retail

The logistics and retail industries can be described as the starting point for RFID technology to take off. As early as 2003, Metro, the largest retailer in Germany, used RFID technology to track and manage the circulation of goods. Wal-Mart in the United States is currently one of the most skilled retail companies using RFID technology to manage products. According to the estimates of retail industry analysts at Sanford C. Bernstein, Wal-Mart can save US$8.35 billion per year by adopting RFID technology. The labor cost saved by manually checking the incoming barcode. "Research shows that shopping malls or large supermarkets using RFID technology are 63% more efficient in replenishing out-of-stock goods than ordinary ones." Wal-Mart executive vice president and chief information officer Linda Dillman said.

Because of the high cost, fewer domestic companies have adopted RFID technology for retail commodity management on a large scale. Haier Group built an RFID technology platform in its newly built 7,200 square meter fully automated logistics center, which not only reduced Haier Group’s warehouse by 200,000 square meters, but also reduced sluggish materials by 90% and inventory funds by 63%, which greatly reduced Operating costs.

With the improvement of RFID technology, the scale of demand in the logistics and supply chain fields will increase day by day. The ultimate goal of RFID is to track a single product, and the demand for electronic tags will be measured in astronomical numbers.

(2) Food safety field

In recent years, domestic food safety has been one of the major issues that concern people's livelihood. Food safety such as milk powder and edible oil has changed the conversation among Chinese people. In recent months, the fake mutton incident has also caused disturbances in various places. Food safety has gradually become one of the factors affecting social stability.

The use of RFID technology can effectively track problem foods. By attaching electronic tags to commodities and foods, the whole process of production, transportation and circulation can be tracked, which can effectively alleviate the dilemma of food safety. Consumers and food quality inspectors only need to read and write electronic tags on the designated readers to learn the source of the food, the processing process and other information, and it can be traced directly to the source of the food manufacturer.

Taking animal husbandry food as an example, after the successful operation of the "Livestock Link" system of the National Golden Card Project RFID pilot project in Sichuan, it will be officially launched nationwide. Through this system, the epidemic prevention and quality inspection department can supervise the whole process of pig breeds and breeding, epidemic prevention and quarantine.

(3) Highway toll collection system

With the gradual establishment of China's expressway network and the continuous increase of domestic car ownership per capita, on congested road sections, especially expressway toll gates entering and leaving urban areas, the speed of staff toll greatly affects the smoothness of traffic.

Many expressway tolls in foreign countries have realized non-stop toll collection. The non-stop toll collection system is an electronic toll collection system using RFID technology to solve the road congestion caused by parking toll queues. From the passing of the vehicle, reading the electronic tag of the vehicle, to deducting the due fee from the customer's account after verification, the whole process takes less than one second. At the same time, because the toll system only requires radio frequency cards, readers, induction coils, databases and other system units, it can form a simple non-stop toll system without manual operation, which not only reduces the purchase cost of hardware and software, but also reduces manual operating costs.

Difficulties facing the RFID industry in China

(1) The cost remains high

Compared with the traditional automatic identification technology-barcode, RFID has significant advantages. But the high price has discouraged some companies. If a five-yuan electronic tag is used for jewelry luxury goods, it is feasible, but the cost of affixed to ordinary small consumer goods, such as snacks and cigarettes, is too large. As far as the current situation is concerned, RFID technology is only suitable for individuals with higher value, which severely restricts the scale and development speed of the entire industry.

Secondly, RFID core chip production and design rely on foreign imports. Each electronic tag has a unique electronic code, which is used for tracking and management of objects, and the demand is huge. Therefore, the cost of the electronic tag almost determines the construction cost of the entire system, and the chip is the soul of the electronic tag, occupying the largest profit in the RFID industry. The domestic RFID technology is relatively late, and currently only masters the chip design technology of low frequency and high frequency tags. Although samples have been developed in the UHF and microwave frequency bands, they have not been mass-produced and can only rely on foreign imports.

(2) System standards are not uniform

The RFID standard system is composed of air interface specifications, physical characteristics, and reader/writer protocol coding system. There are currently five major international standards organizations, representing the interests of different countries or groups. EPC global is a joint establishment of the North American Product Uniform Coding Organization and the European Product Coding Organization. It has hundreds of members all over the world and is supported by many large multinational companies. AIM, ISO, UID are commonly used in Europe, America and Japan, and IP-X represents Oceania, Asia, Africa and other countries. In contrast, EPC global is widely used because it integrates major manufacturers in the United States and Europe.

At present, the domestic RFID standard has not yet been formulated and is still in the exploration stage. Because there is no uniform standard to follow, the RFID products of various companies use different frequencies, encodings, and storage rules, and tags and readers cannot be used universally. This results in the inability of communication and cooperation between companies and enterprises, and hinders the development of the RFID industry. As one of the world's largest commodity production and export bases, China must accelerate the progress of standard formulation in order to consolidate its advantages in international trade. Not only continue to sell "Made in China" products abroad, but also strengthen the exchange and development of the domestic RFID industry.

 (3) Lack of experience in project implementation

At present, RFID is a new thing. Due to the many and complex characteristics of RFID products, in the implementation of the project, the domestic construction party is usually some software integrators, most of which are the first time to contact RFID products, and the attention is too much to read. In terms of the writing of the writer software interface, due to the lack of in-depth understanding of the product characteristics of RFID by some construction parties, they have not considered the possible situations well, resulting in the application effect being not as expected, and ultimately affecting the user's further expansion of the project, thus slowing the promotion of RFID application speed.

(4) Easily form monopolistic enterprises

At present, there are almost all domestic RFID companies in various sub-sectors, but there is a lack of leading companies in the market. There are fewer well-known companies such as Yuanwanggu, the market concentration is low, the degree of cultivation is insufficient, and barriers are easily formed. Once an enterprise opens up in the market segment, it is more difficult for other enterprises to enter. For example, as a monopolist in the RFID market of the railway industry and a leading enterprise in the entire industry, Inview Valley has a market share of more than 60%, and its annual revenue reached 456 million yuan, a year-on-year increase of 42.24%.

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