RFID: 'You know you want it'

It's a $1bn gamble for business and there's a price on your head too - 10p off sliced white...

By Jo Best, 7 January 2004 17:10

NEWS While 2003 was the year that saw the emergence of RFID, with household names such as WalMart jumping on the bandwagon, several retailers got cold feet and ditched the technology. Not so this year, say analysts – big business is crying out for the technology and, more importantly, the tide of public opinion is set to turn – as companies lure consumers with cold, hard cash.

Despite high street retailers including Marks & Spencer and Tesco trialling the contentious technology and then ditching it due to the reaction from the public, a report from Forrester Research has found that consumers wouldn't mind being tracked with the radio tags if it meant cheaper shopping.

The survey of US consumers found that, when questioned, people admitted they wouldn't mind giving up certain information about themselves via RFID, including location, if it saved them time or money – with over half of consumers saying they'd be happy to be tracked in a supermarket if they were given money-off coupons for their groceries.

Some information is not for sale, however, according to consumers – not even for 20p off black bin bags. As soon as the data requested takes on a more personal tone, not even grocery vouchers would get them to turn canary, the research found.

Nevertheless, the trend towards take-up of the technology and shifting consumer attitudes will be music to the ears of companies across the Atlantic, who, according to a separate report from analyst group IDC, entitled US RFID for the Retail Supply Chain Spending Forecasr and Analysis 2003-2008, will be increasing their RFID spending from $91.5m last year to $1bn in 2008, spurred on by falling hardware prices and better understanding.

Even if RFID isn't commonplace currently, retailers should accept they'll be deploying it soon enough.

Christopher Boone, the programme manager of US vertical industry research at IDC, said: "Although many suppliers and distributors are currently unfamiliar with RFID technology, they will soon need to comply at some level with customer demands for RFID tagging of cases and pallets."

Who will actually be signing up to use the technology is unclear – the Forrester Research report, The X Internet and Consumer Privacy, also surveyed a number of companies globally about whether they would be happy to collect detailed information on their shoppers. Eighty per cent replied in the negative, with nearly half citing fear of invading consumers' privacy as the main deterrent.

Altruists? Not quite. Almost the same number said they wouldn't collect the data because it would cost too much.

Comments

There are 8 comments. Join the discussion

  1. 1. Michael

    too typical of modern reporting - assumes we know what the contraction means - what is RFID?

    [Ed's note - RFID stands for radio frequency identification. It's a system by which small tags are inserted into or onto objects and used to track their whereabouts, acting like a bar code that can be read from some distance away. It's most often found in shops or warehouses for supply chain manangement.]

  2. 2. Karen Challinor

    It's another method of reducing the workforce and wages bill. Just like offshoring jobs to India.

    So these people who won't be able to get jobs even as a checkout operator where are they going to shop and how are they going to earn the money to pay for the goods they buy ?

    I'm beginning to sound like a luddite I know, but people need employment and the number of jobs available in this country is reducing while the number of job seekers keeps increasing, no matter how the government fudges the figures.

    Something has to give somewhere.

  3. 3. Ken Hall

    so here's the scenario....
    We get RFID, and personal data implants which encode our personal details, credit score, nationality religion, political affiliations, memberships and known contacts.

    It eases our troubles. We can walk into a store fill our baskets and walk out having the money directly debited from our accounts.... We know if our personal belongings get stolen whilst we are out....Their centralised computers can track our cars if they too are taken, likewise our most precious ones, our children.

    life is great, we can buy cars without waiting for the credit check to come through, for you will not be able to walk through the doors unless your credit is good.

    We can apply for jobs without having to remember where our passports/birth certificates are...

    BUT! what happens when a government decides to creat laws you fundementally disagree with? what happens when you decide to peacefully protest? what happens when the government takes that protest and declares it as against the interests of the state and monitors every-one protesting. then the next time you try to shop, the prices have shot up. not for every-one, but just for those deemed 'potentially dangerous'.

    you can no longer buy the new car. the doors won't open at the dealership. Likewise the automatic entry-doors at work no longer open....

    What happens when those who could be corrupt in the future are given even more powers over us?

    We may have nothing to hide.....But do they?


    I'd rather not give them the option in the first place.

    NO NO NO to RFID,
    The aint gonna chip me!

  4. 4. anonymous

    Will RFID's help burglars to know which houses to hit?

  5. 5. Derek

    If people in America were smart (we're not) they would boycott every company involved in RFID tags. We are becoming a fascist state and people are too stupid to realize it. The government is tightening the noose around all of our necks. They are hitting us from multiple angles....the end result a total "lockdown" tyranny similar to "1984" by George Orwell. When the RFID community is meeting with Tom Ridge to "neutralize opposition", you have a sad state of affairs.

  6. 6. anonymous

    One potential use for RFID that doesn't seem to get mentioned is stopping or at least cutting down shoplifting. One friend with a small art gallery is nearly going out of business due to targeted shoplifting and this technology could help by identifying items in the store. To get around the personal privacy side the chips could simply be deactivated on payment for the goods, but the whole technology is too expensive for the small retailer.

  7. 7. Morgan Hardisty

    July 5, 2001 - A tiny new chip has been developed by Hitachi that contains 128 bits of ROM memory and a RFID (Radio frequency Identification) transponder. It is only 0.4 millimeters on a side. The chip, called Mew, can transmit information over a distance of about 30cm. It can be imbedded in a paper product to insure its authenticity, and, as in the case of money, to track its location and its history.
    go here and listen to streaming audio about "global I.D." and the "smart pass."(http://www.endtime.com/html/radiohtm.asp) it apears to be a viable investment.

  8. 8. anonymous

    Take the chip, it's the "Christian" and Patriotic thing to do! Those that do not, well, they may be criminals!

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