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Low-Cost RFID Smart Labels - International Markets & Opportunities in Europe & North America

  • ID: 463851
  • Report
  • Region: Global, Europe, North America, United States
  • 260 Pages
  • Vandagraf International Limited
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  • Astra Zeneca
  • Avery Dennison
  • Hewlett Packard
  • Kuehne-Nagel
  • M&S
  • Nestle Deutschland
  • MORE
“Low-cost RFID Smart Labels – International Markets & Opportunities in Europe & North America”, first published in February 2006, we at Vandagraf have now completed a 2nd edition of this report - More comprehensive, revised forecasts, additional Case Studies…….

The World of RFID labels continues to move very fast and developments are constantly being monitored by Vandagraf International. Low cost passive RFID label technology is heralded as the electronic super bar code that promises huge potential benefits and overall cost savings in retail and military supply chains. The enhanced security achievable with RFID labels is also of great potential value to the pharmaceutical sector.

RFID labels operate by radio and do not require direct line of sight. The high storage capacity of RFID labels means that literally billions of different unique numbers are possible - A much greater number than with bar codes. These and other features combine to make RFID labels such an interesting tool.

Massive growth is forecast with the number of RFID labels consumed rising at over 100% annually from around 0.6 million units in 2005 (1.2 million in 2006) to over 700 billion units in 2015.

Very significant opportunities (and also threats) exist for companies choosing to operate in the low-cost RFID label space.
The report contains a detailed analysis of the drivers and barriers, supported with numerous Case Studies. From this we draw conclusions and derive quantitative forecasts, with breakdowns by:
- Level of label application of RFID Labels – Pallet / Shipping Case / Item levels
- RFID Labels End-user sectors – Retail sector, brand owners, fast moving consumer goods (FMCGs), clothing, consumer electronics, pharmaceuticals, military & third party logistics operators
- Silicon chip-based versus chipless RFID labels.

This report has not been written by RFID technology scientists or IT specialists. Rather the research and writing of the report has been carried out by highly experienced professionals, with strong backgrounds in packaging, labels, branded FMCG products, logistics and retail supply chains with hands-on industrial and engineering experience.

Who should buy this report – Label printer / converters, packaging converters, labelstock laminators, RFID inlay suppliers, ink & adhesive suppliers, RFID label converting equipment builders, brand owners, RFID label software providers, systems integrators, financial institutions and potential investors.

The principal author, James Bevan, has some 25 years professional experience in the packaging / labels/ logistics sector, during 20 years of which, he has been actively engaged in international consultancy projects. He has a number of years experience, researching, analysing and writing techno-economic reports, continuing to building on skills learned with the Battelle Institute in Geneva during the early 1980s.

Amidst the hype, there are now exceptional opportunities to be exploited in the low-cost RFID smart labels market - This has been a number of years in coming, But the market for low-cost smart RFID labels is now poised to achieve dynamic double digit growth.

The collective will of the large major players (on both the supply and demand side) in this industry is now robust and still gathering momentum.

Low-cost RFID smart labels are set to revolutionise the world’s supply chains over the next decade. The advantages are compelling and include the following:.

RFID labels operate by wireless radio and do not require direct line of sight, which can be a major plus (and in some situations a potential minus). Bar codes are read optically and do require direct line of sight.

RFID labels can store an identifier number in a silicon chip. Billions of different unique numbers are possible, so that RFID labels have the potential to identify very many individual items. Bar codes can generally only identify a type of product (a single stock keeping unit SKU with a unique bar code number will describe all products of that type.

-The entire data capture process can be automated so that human error may be eliminated.

-The data captured has the potential to be networked across entire supply chains in ‘real time’.

-While a significant disadvantage is the cost of RFID labelling:

-Although the incremental cost of printing a bar code may be close to zero, an RFID label has a measurable unit cost

Roll-out of RFID label technology will continue to require major investments in readers and other equipment and software.
On balance, the advantages are going to outweigh the disadvantages and the potential financial rewards are there for the taking, as some major retailers have already been discovering.

The tipping point for widespread adoption of RFID labelling will occur some time in the not-too-distant future.

But RFID has been around for quite a number of years, so why now?
Note: Product cover images may vary from those shown
2 of 4


  • Astra Zeneca
  • Avery Dennison
  • Hewlett Packard
  • Kuehne-Nagel
  • M&S
  • Nestle Deutschland
  • MORE
EXEC 1 Forward
EXEC 2 Background
EXEC 3 Defining the scope of the report
EXEC 4 Low-cost RFID smart labels (silicon chip-based, chipless)
EXEC 5 Cost aspects
EXEC 6 The Self-adhesive label as a carrier of choice for RFID inlays
EXEC 7 Label types
EXEC 8 Self-adhesive RFID labels
EXEC 9 World markets for all types of labels
EXEC 10 The role of label printer / converters
EXEC 11 The potential advantages / disadvantages of low-cost RFID smart labels
EXEC 12 Demand side drivers
EXEC 13 Mandates to suppliers by retailers and the US DoD
EXEC 14 Supply side - Manufacture of RFID labels
EXEC 15 Barriers to progress
EXEC 16 Standards & frequency issues
EXEC 17 Europe versus North America – Rate of RFID Label adoption
EXEC 18 Priority Benefits for RFID Labels for Different End-user Sectors
EXEC 19 Technologies that compete with RFID Labels
EXEC 20 Forecasts for Worldwide Markets for Low-cost RFID Smart Labels by Value and by Volume – 2005 to 2015.

Introduction – Low-Cost RFID Labels

INTRO 1 RFID An introduction
INTRO 1.1 RFID Defined
INTRO 1.2 Background
INTRO 1.3 Historical Timeline – RFID Technology
INTRO 1.4 Markets for Auto-ID Technologies
INTRO 1.5 Low-Cost RFID Smart Labels Versus Bar Codes

INTRO 2 Types of RFID Label
INTRO 2.1 2 Major Frequency Ranges - Low-cost RFID Smart Labels
INTRO 2.2 EPC UHF Low-cost RFID Smart Labels - 900 (868 – 915) MHz
INTRO 2.3 The Need for ‘Flat Response’ UHF Gen 2 RFID Antennae / Inlays for Global Operability
INTRO 2.4 Case Study - Omron Introduces New Gen 2 RFID Inlays
INTRO 2.5 HF Low-cost RFID Smart Labels - 13.56 MHz
INTRO 2.6 Main Characteristics of HF Versus UHF Low-cost RFID Tags / Labels
INTRO 2.7 Product Offerings – Components Versus Finished Labels

INTRO 3 Low-cost RFID Label Types & Form Factors
INTRO 3.1 Pallet / Case Level VIP RFID Labels
INTRO 3.2 Prime Item Level RFID labels
INTRO 3.3 RFID Labels with Innovative Constructions
INTRO 3.3.1 Flag Tag – Rafsec / Sato
INTRO 3.3.2 Space Tag – Paxar
INTRO 3.3.3 RFID Enabled Hang-Tags / Swing-Tickets
INTRO 3.3.4 Tubular Woven Labels

INTRO 4 RFID Label Printing and Over-printing
INTRO 4.1 Background to RFID Label Printing
INTRO 4.2 Printing Process Options:
INTRO 4.3 Annual Sales of Narrow Web Roll Label Presses – Evolution of Market Share
INTRO 4.4 RFID Enabled Desktop Label Printers Printers & Printer / Applicators

INTRO 5 The Basics of RFID Inlay / Label Manufacture
INTRO 5.1 Low-Cost RFID Smart Inlay Construction
INTRO 5.2 Strap Attachments (Fixing Silicon Chips to Antennae)
INTRO 5.3 RFID Label Laminate Construction - Triple layer & Dual layer
INTRO 5.4 Creating an RFID Smart Labelstock
INTRO 6 Driving Down Unit Cost of RFID Labels
INTRO 6.1 Printed RFID Antennae
INTRO 6.2 Chipless and other Related RFID Technologies
INTRO 6.2.1 Chipless RFID Technology – Inkode Corporation
INTRO 6.2.2 Chipless RFID Concept - Scientific Generics Flying Null Magnetic Bar Code
INTRO 6.2.3 Chipless RFID Technology - Surface acoustic wave (SAW)

PART A - End-Users
A.1. Retailers – Low-Cost RFID Smart Labels
A.1.1 The World’s Leading Retailers
A.1.2 RFID Labels in the Retail Chain
A.1.3 Retailing of Fast Moving Consumer Goods (FMCGs) - Supermarkets / Hypermarkets
A.1.3.1 Low-Cost RFID Smart Labels in Retailing
A.1.3.2 Retailer Low-cost RFID Smart Label Pilots – Historical Time-Line
A.1.3.3 RFID Labels in Supermarkets / Hypermarkets
A.1.3.4 Case Study Wal-Mart, US - The First Retailer to Mandate Low-cost RFID Smart Labels
A.1.3.5 Case Study ‘Future Store Initiative’ - Metro Group, D
A.1.3.6 Case Study Tesco plc, UK - An Early Adopter of RFID Labels in Europe with 2 RFID Projects - Secure Supply Chain Program for Pallets / Cases – DVDs at Item Level on Smart Shelves
A.1.3.7 Case Study Retailer European Adoption Programme (EAP)

A.1.4 Retailing of Clothing (incl. Sportswear and Footwear)
A.1.4.1 The World Market for Retail Clothing (incl. Sportswear and Footwear)
A.1.4.2 Out-of-stocks (OOSs) - A Major Concern for Clothing Retailers
A.1.4.3 RFID Labels for Retail Clothing
A.1.4.4 Case Study - Marks & Spencer (M&S) - Two Separate RFID Pilots and Rollouts (Item Level – Clothing / Fruit – Returnable Packaging)
A.1.4.5 Case Study - Metro Group - Kaufhof Warenhaus AG and Fashion Company Gerry Weber International AG
A.1.4.6 Case Study - Benetton – Item Level Clothing RFID Label / Tag Pilot Halted Due to Privacy Concerns
A.1.4.7 Case Study - Prada Fashion – An Innovative Early Experiement with RFID Technology at Item Level in a Clothing Retail Setting

A.1.5 Retailing of Consumer Electronics
A.1.5.1 Digital Televisions & DVD Players
A.1.5.2 DeskTop, LapTop Computer Hardware & Consumables
A.1.5.3 Mobile Cellphones
A.1.5.4 Retail Trends for Interactive Video Games
A.1.5.5 RFID Labelling – Consumer Electronics - Potential Financial Benefits for Manufacturers and Retailers
A.1.5.6 Cost Aspects - Consumer Electronics - RFID Adoption
A.1.5.7 Case Study – Best Buy - US Mass Merchandise Retailer of Consumer Electronics Products
A.1.6 Early Versus Late Adoption – RFID Technology in Retailing

PART A End-Users
A.2 Brand Owners - Low Cost Passive RFID Labels
A.2.1 The World’s Leading Brand Owners – FMCGs (Fast Moving Consumer Goods)
A.2.2 Leading Brand Owners - Early Involvement in RFID Labelling - The Auto-ID Center
A.2.3 ‘Slap & Ship’ - A Minimal Approach to RFID Labelling has been used by Some Brand Owners
A.2.4 Challenging Physics of RFID Labelling Leads Major Brand Owners to Rethink the Design of their Product Packaging

A.2.5 Brand Owners - Fast Moving Consumer Goods (FMCGs)
A.2.5.1 Case Study - Gillette - Shaving Products
A.2.5.2 Case Study - Nestle Deutschland - RFID Labels for Food Products
A.2.5.3 Case Study - Unilever Germany - RFID Labels for Home & Personal Care Products
A.2.5.4 Case Study - Kimberly Clark, US - Paper Products

A.2.6 Brand Owners - Clothing (incl. Sportswear and Footwear)
A.2.6.1 Case Study – Lemmi Fashion, D
A.2.6.2 Case Study – Levi Jeans – RFID Labels for Item Level RFID Tagging / Labelling of Clothing in Mexico and the US
A.2.6.3 Case Study - VF Corp - RFID Labels for Item Level RFID Tagging / Labelling of Clothing

A.2.7 Brand Owners - Consumer Electronics

A.2.7.1 Case Study - Hewlett Packard (HP), US
A.2.8 Early Versus Late Adoption – Pros & Cons

PART A - End-Users

A.3 Pharmaceuticals and Healthcare Products - Low
Cost Passive RFID Labels
A.3.1 Overview of the Pharmaceuticals and Healthcare Sectors
A.3.1.1 The World’s Leading Brand Owners – Pharmaceuticals and Healthcare Products
A.3.1.2 The Market and Growth Opportunities - Pharmaceuticals and Healthcare Products
A.3.1.3 Future Trends in Pharmaceuticals and Opportunities in RFID Labelling

A.3.2 RFID in the Pharmaceuticals and Healthcare Sectors
A.3.2.1 Adoption of Low-Cost RFID Smart Labelling - Pharmaceuticals and Healthcare Products
A.3.2.2 Potential Benefits of RFID in the Pharmaceuticals and Healthcare Sectors
A.3.2.3 Forecast Time-scales for RFID in the Pharmaceuticals and Healthcare Sectors
A.3.2.4 Case Study - Astra Zeneca, UK – An Early Adopter of Chipless RFID Labels - Recognition Feature / Electronic Handshake
A.3.2.5 No Single Standard Frequency in Sight for Item Level RFID Labelling of Pharmaceuticals Products - UHF versus HF
A.3.2.6 Case Study - Pfizer / Viagra – HF RFID Labelling at Item Level
A.3.2.7 Case Study - Purdue Pharma / OxyContin – Item Level UHF RFID Labelling
A.3.2.8 Case Study - Cardinal Health – Pilot Completed in 2006 - UHF RFID Labels at Pallet, Case and Item Level
A.3.2.9 Case Study - GlaxoSmithKline (GSK) Tests RFID on HIV Pharmaceutical Product - HF RFID Labels at Item Level
A.3.2.10 Profile - Aegate Project – Authentication at the Point of Dispensing
A.3.2.11 Profile - CVS/pharmacy Inc. – US based Pharmaceuticals Retailer - Smart Shelf Pilot

A.3.3 Track and Trace - Audit Trail and Pedigree - RFID Labelling -
Pharmaceuticals and Healthcare Products
A.3.3.1 The Need for Pedigree Laws for Pharmaceuticals is Compelling Today
A.3.3.2 Pedigree Laws – How they work - Flow of Data and Accountability
A.3.3.3 Electronic versus Paper-Based Pedigree Systems
A.3.3.4 Pedigree Laws for Pharmaceuticals – The US Food & Drug Administration (FDA)
A.3.3.5 Pedigree Laws for Pharmaceuticals – Individual US States
A.3.3.6 European Pedigree Regulations for Pharmaceuticals will Come
A.3.37 Case Study - Cap Gemini Drug Security Network (DSN) Lab – To Facilitate Implementation of electronic pedigrees
A.3.3.8 EPCglobal Ratifies E-Pedigree Standard

PART A - End-Users
A.4 Military Applications – Low-Cost RFID Smart Labels

A.4.1 World Armed Forces & Defense Spending
A.4.1.1 National Armed Forces around the World – Number of Personnel
A.4.1.2 Armed Forces for the leading European EU member countries
A.4.1.3 Defense Spending in Selected Countries

A.4.2 US Armed Forces
A.4.2.1 US Department of Defense (DoD) / Defense Logistics Agency (DLA)
A.4.2.2 Case Study - RFID in the First Gulf War in 1991
A.4.2.3 Case Study - RFID in Iraq – New and Repaired Parts – Sense & Respond Logistics
A.4.2.4 DoD / DLA and RFID – Active RFID Technology
A.4.2.5 The Linking of Active and Passive RFID tags / labels through the DoD / DLA Supply Chain
A.4.2.6 US DoD / DLA – The Introduction of Passive RFID Labelling Technology
A.4.2.7 DoD / DLA Supplier Implementation Plan & Guidelines
A.4.2.8 DoD / DLA Supplier Implementation Plan
A.4.2.9 Updated Mil Standard for Package Labelling
A.4.2.10 The US DoD / DLA Approach to their Respective Suppliers Differs from that of Major Retailers
A.4.2.11 Key Differences between DoD / DLA and Retailers
A.4.2.12 Overcoming Initial Difficulties with Implementation
A.4.2.13 Case Study – Read-rates – Ramstein Air Force Base in Germany
A.4.2.14 Case Study - Lockheed Martin
A.4.2.15 Case Study – Savi Technology, US – SmartChain Consignment Management Solution (CMS)
A.4.2.16 Case Study - Avery Dennison Wins DoD / DLA Purchase Agreements

A.4.3 The Wider Impact of the DoD / DLA Mandates - Beyond the US
A.4.3.1 NATO (North Atlantic Treaty Organisation)
A.4.3.2 NATO - Low-cost RFID Technology – Roll-out is Starting
A.4.3.3 Case Study - Syscan International’s newly developed ICE (Intelligent Communication Enabled) network technology.

PART A - End-Users
A.5 Third Party Logistics Operators – Low-Cost RFID Smart Labels
A.5.1 Logistics Sector – Evolution of Industry Structure
A.5.1.1 Different Types of Third Party Logistics Operators
A.5.1.2 Trend to consolidation in the Third Party Logistics Operator Sector
A.5.1.3 Leading Air Express Cargo Companies (DHL, Fedex, UPS)
A.5.1.4 Case Study - Kuehne-Nagel (K+N) – World No 1 in arranging seaborne cargo
A.5.1.5 The World’s Leading Third Party Logistics Operators – Contract Logistics
A.5.1.6 Large-scale Highly Automated Retailer Distribution Centres
A.5.1.7 Profile Tesco Frozen Crick Project – Third Party Logistics Contractor Exel

A.5.2 Low-Cost RFID Smart Labels – Third Party Logistics Operators
A.5.2.1 Low-Cost RFID Smart Labelling in a Warehouse Environment
A.5.2.2 RFID Labelling & Warehouse Management Systems (WMS)
A.5.2.3 Enhancing the Services That an RFID Enabled Third Party Operator Can Offer Customers
A.5.2.4 Third Party Operators can also Obtain Internal Benefits from RFID
A.5.2.5 Requirements for Different Types of RFID across a Complex International Supply Chain
A.5.2.6 DHL - 3 Distinct Areas of RFID implementation: Fashion Logistics, Retailer Metro Group project, Postal services
A.5.2.7 UPS (United Parcel Services) – A Pro-active Investor in RFID Technology
A.5.2.8 Case Study Deutsche Post Corporate Security – RFID Enabled Tamper-evident Packaging
A.5.2.9 Case Study Metro Group - Future Store - Product Flow System
A.5.2.10 Formation of the EPCglobal Logistics and Transportation Group

PART B Drivers & Barriers
B.1 Background – Drivers & Barriers
B.1.1 Drivers & Barriers - Low-cost RFID Smart Labels
B.1.2 Unit Price Falling by end 2005 - Low-cost RFID Smart Labels

B.2 Key Triggers / Benefits / Regional Focus - The Low-Cost Passive
RFID label Revolution
B.2.1 Key Triggers by End-user Sector
B.2.2 Key Benefits for End-Users (Retailers, Brand Owners, Pharmaceuticals, Military, Third Party Logistics Operators)
B.2.3 Retailer Primary Aims and Focus by Region (Europe versus North America)
B.2.4 Distribution and Retail – Business Practices in Europe and North America

B.3 European Retail and Branded Products Industry Focus
B.3.1 Reduction of OOS (Out-of-Stocks) / Increased Product Availability and Other Secondary Benefits - A Key Benefit for Retailers
B.3.2 Primary Benefit of Low-cost RFID Smart Labels for Retailers – OOS (out-of-stocks)
B.3.3 Reduction of OOS (Out-of-Stocks) / Increased Product Availability and Other Secondary Benefits
B.3.4 Traditional Approach to Re-stocking Retail Shelves
B.3.5 The Low-cost RFID Smart Label Way of re-stocking Retail Shelves - Practical Benefits of Low cost RFID Labels
B.3.6 RFID Labelling of Returnable Packaging Units in Retailing (eg: Plastic Trays)
B.3.7 OOS (Out-of Stocks) – Industry Average Levels
B.3.8 Case Study - Wal-Mart Has Achieved Early Success with Low-Cost Smart RFID Labels achieving 16% reduction in OOS (out-of-stocks) in 2005
B.3.9 Limited Duration Special Promotions - The ‘Bullwhip Effect’ – Amplification of Stock Level Fluctuations Along Supply Chains
B.3.10 Case Study – Procter & Gamble (P&G) – Joint Venture to Improve Supply Chain Visibility and Replenishment Performance
B.3.11 The Benefits Stack - The Impact of Widespread Usage of RFID Smart Labels for Retail Products will be Far Reaching
B.3.12 The Virtuous Circle of Potential Benefits for Retailers
B.3.13 Mandates to Suppliers by Retailers

B.4 Product Related Crime / Counterfeiting / Brand Protection
B.4.1 Background to Brand Protection Issues
B.4.2 Variations on the Theme of Counterfeiting
B.4.3 Worldwide Losses from Product Related Crime from 2000 to 2002 with Forecasts to 2010
B.4.4 The Pharmaceutical Sector is at Particular Risk in Relation to Product Related Crime
B.4.5 The Urgent Need for Brand Protection in the Pharmaceuticals & Healthcare Sectors
B.4.6 Pharmaceutical Packaging – Security Features
B.4.7 The Increasing Role for RFID Labelling in the Fight against Counterfeiting

B.5 The Need for Global Standards – Radio Frequency & Power Aspects
B.5.1 A Summary of the Full Radio Frequency Spectrum
B.5.2 Frequency Bands Reserved for Non-Label RFID Applications
B.5.3 The Two Dominant Frequency Ranges for RFID Labels – UHF versus HF
B.5.4 Developments in Global Standards for RFID Labels
B.5.5 Towards Global Usage of UHF RFID Labels - Regional Differences in Usable Frequency Ranges for UHF RFID Labels
B.5.6 European versus US RFID Regulations
B.5.6.1 The EU and RFID Labels
B.5.6.2 The Dense Reader Issue / Listen-Before-Talk – EU Regulations

B.6 Consumer Privacy - A Key Issue for Consumers
B.6.1 Background to the Consumer Privacy Furore – RFID Labelling
B.6.2 History of RFID and Consumer Privacy
B.6.3 Consumer Privacy Related Regulatory Actions
B.6.4 Case Study - Marks & Spencer (M&S) – Addressing Consumer Privacy Concerns – Item Level RFID Labelling of Clothing
B.6.5 Case Study - The Aegate Approach - A Pro-active ‘Privacy Code of Conduct’

PART C - Forecasts
C.1 Low-Cost RFID Smart Labels - Very High Growth Potential is Leading to Major Market Opportunities
C.2 Value Growth Forecasts - RFID Markets by Region - Low-Cost RFID Smart Labels - 2005 to 2015
C.3 Volume Growth Forecasts - RFID Markets (Global, Europe & North America, Low-Cost RFID Smart Labels) - 2005 to 2015
C.4 Volume Growth Forecasts - Pallet / Shipping Case / Item Level - 2005 to 2015
C.5 Volume Growth Forecasts - Breakdown by End-User Sector (Retail Supply Chain, Pharmaceuticals, Military, Third Party Logistics Operators, Non-Label RFID Tags) - 2005 to 2015
C.6 Volume Growth Forecasts - Silicon Chip-Based RFID Labels versus Chipless RFID Technologies - 2005 to 2015
C.7 Value Growth Forecasts - Components of the Low-Cost RFID Smart Label Market (Labels, Readers and other Hardware, Software, Integration Services) - 2005 to 2015

APPENDIX I EPCglobal Tag Classes
APPENDIX II The Auto-ID Center and the EPCglobal GS1 (Global Standard) Organisation
APPENDIX III The EPCglobal Network
APPENDIX IV Important Advantages Come with the New Gen2 RFID Standard
APPENDIX V Towards Global Harmonisation for UHF RFID
APPENDIX VI Issues around Intellectual Property Rights and Patents
APPENDIX VII Historical Evolution of Bar codes
APPENDIX VIII Optical Codes - Linear Bar codes and 2D / Matrix codes
APPENDIX IX EAS – Electronic Article Surveillance (Anti-Theft) Tag / Labels – Binary On / Off – Not RFID

List of Tables
Table 1.1 Historical Timeline – RFID Technology
Table 1.2 Key RFID Label Characteristics versus Key Bar Code Characteristics
Table 1.3 Overview of Main Characteristics of HF and UHF RFID Labels
Table A.1.1 The World’s Leading Retailers – Annual Sales in 2003 / 2004 (Best Estimates)
Table A.1.2 Clothing Markets North America and Western Europe
Table A.1.3 Digital Televisions & DVD Players – Annual Shipments to US Retailers
Table A.1.4 Potential Low cost RFID Label Strategies for Retailers
Table A.2.1 The World’s Leading Suppliers of Food Products – Annual Sales in 2003 / 2004 (Best Estimates)
Table A.2.2 The World’s Leading Suppliers of Drinks Products – Annual Sales in 2003 / 2004 (Best Estimates)
Table A.2.3 The World’s Leading Suppliers of Toiletries & Cosmetics – Annual Sales in 2003 / 2004 (Best Estimates)
Table A.2.4 The World’s Leading Suppliers of Household Products – Annual Sales in 2003 / 2004 (Best Estimates)
Table A.2.5 RFID Labelling levels for Different Product Categories – Hewlett Packard
Table A.3.1 The World’s Leading Suppliers of Pharmaceuticals and Healthcare Products – Annual Sales in 2003 / 2004 (Best Estimates)
Table A.3.2 Potential Benefits - RFID Labelling in Pharmaceuticals and Healthcare
Table A.3.3 Forecast Time-scale of Implementation - RFID Labels in the Pharmaceuticals Sector
Table A.3.4 A Single Standard Frequency has not yet been Achieved for Item Level RFID Labelling of Pharmaceuticals – UHF versus HF
Table A.3.5 Electronic versus Paper-Based Pedigree Systems - Strengths and Weaknesses
Table A.4.1 National Armed Forces around the World – Number of Personnel
Table A.4.2 Armed Forces for the Leading European EU Member Countries - – Number of Personnel
Table A.4.3 Defense Spending in Selected Countries
Table A.4.4 DoD / DLA Tagging Requirements by RFID Layer
Table A.4.5 The 26 NATO Member Countries
Table A.5.1 Leading Air Express Cargo Companies
Table A.5.2 Global leaders in Third Party Operator Contract Logistics – Ranked by Annual Revenues in 2004
Table B.1.1 Demand Side Drivers
Table B.1.2 Supply side Drivers
Table B.1.3 Barriers
Table B.1.4 Unit Cost Estimates – RFID Inlays, Print & Apply VIP Labels, Finished Multicolour Printed Prime Labels
Table B.1.5 Some Price Indicators for RFID Labels / Inlays / Straps
Table B.2.1 Key Triggers by End-user Sector
Table B.2.2 Key Benefits as Defined by Different End-User Sectors – Low-Cost RFID Smart Labels
Table B.2.3 Retailer Primary Aims and Focus by Region (Europe versus North America)
Table B.2.4 Retail Store Back Room Floor Space
Table B.3.1 The Benefits Stack for Supply Chain Applications of RFID Labels
Table B.4.1 Worldwide Losses from Counterfeiting & Product Piracy, Retail Theft and
Product Tampering from 2000 to 2002 with Forecasts to 2010 in US$ Billions
Table B.5.4 Radio Related Regulatory Issues for Major Regions
Table B.5.5 RFID Regulations – North America versus Europe
Table C.1 Growth Prospects for RFID Labels by End-user Sector
Table C.2.1 Forecast Evolution of the Market Worldwide for RFID with Breakdown by
Region - by Value ($ Millions) - 2005 to 2015
Table C.3.1 Forecast evolution of the Market for RFID Devices (Tags / Labels) – 2005 to 2015
Table C.4.1 Forecast Evolution of Worldwide Sales of Low-Cost RFID Smart Labels in Billions of Units (Pallet / Shipping Case / Item Level) by Volume - 2005 to 2015)
Table C.5.1 Forecast Evolution of Global Sales of Low-Cost RFID Smart Labels in Billions of Units by Volume - 2005 to 2015
Table C.6.1 Chipless RFID Labels versus IC chip-based RFID Labels – Forecast Evolution of Market Share - % - 2005 to 2015
Table C.7.1 Forecast Market Growth for components of the RFID Label Market Worldwide ($ Millions) - 2005 to 2015

List of Figures
Fig 1.1 Product Identification / Stock Control Technologies
Fig 1.2 Examples of the EPC UHF Passive RFID Inlays
Fig 1.3 ‘Flat Response’ UHF Gen2 RFID label Antennae
Fig 1.4 Omron UHF (Loop) Inlay Designed for Pallet and Case Level Applications
Fig 1.5 An Example of a 13.56 MHz HF Passive RFID Inlay
Fig 1.6 An HF RFID Inlay with a Circular Antenna Configuration Designed for
Application to CDs and DVDs
Fig 1.7 RFID Inlays Supplied in Roll Form
Fig 1.8 Product Offerings – RFID Options (Inlays / Pressure-Sensitive Inlays /
Finished RFID Labels)
Fig 1.9 Pallet / Case Level VIP RFID Label
Fig 1.10 An Example of a Prime Item Level RFID label
Fig 1.11 Bemrose Booth item level RFID label applied to the Purdue Pharma
Oxycontin Plastic Bottle
Fig 1.12 The Sato RFID FlagTag Label
Fig 1.13 The Paxar RFID SpaceTag Label
Fig 1.14 An Example of an Item Level EPC RFID Enabled Hang-Tag
Fig 1.15 An Item Level (non-EPC) RFID Enabled Hang-Tag Used for Clothing
Stock Control by Marks & Spencer
Fig 1.16 A Paxar Tubular Woven RFID Label
Fig 1.17 Print Processes / Print Speeds – Impact of Unit Cost of RFID Tags with Printed Antennae
Fig 1.18 VIP RFID Labels Produced Using RFID Enabled Desktop Printer
Fig 1.19 An Example of On-line RFID Label Enabled ‘Print & Apply’ Equipment
Fig 1.20 How the Components of a Strap are Attached to a Metallic Antenna
Fig 1.21 Continuous Webs of Strap attachments with Chips alongside RFID Antennae
Fig 1.22 Triple layer & Dual layer Construction - RFID Label Laminates
Fig 1.23 Overview of the Manufacture of RFID Inlays
Fig 1.24 Creating an RFID Smart Labelstock
Fig 1.25 FleX Wing Printed UHF RFID Antennae from Precisia in Roll Form
Fig 1.26 Chipless RFID Technology - Close-up View of Inkode Fibres Embedded in Paper
Fig 1.27 Chipless RFID Concept – The Flying Null Magnetic Bar code
Fig 1.28 Chipless RFID Technology - Surface Acoustic Wave (SAW)
Fig A.1.1 A Typical Retail Supply Chain – RFID Enabled
Fig A.1.2 First Mover Retailer RFID Roll-out Announcements to first half of 2004
Fig A.1.3 Smart Shelving - RFID Enabled Tesco Gondola Shelving Unit for DVDs
Fig A.1.4 How the Intelligent Label is Used for Stock Control – Retail Clothing
Fig A.1.5 M&S Mobile Scanner Mounted on a Modified Shopping Trolley
Fig.A.2.1 Hewlett Packard RFID Scope is Global
Fig A.3.1 Astra Zeneca Diprifuor™ Unit with RFID Tagged Syringe
Fig A.3.2 Viagra Tablet Packaging
Fig A.3.3 Bemrose Booth Item-level RFID Label - Purdue Pharma Oxycontin Plastic Bottle
Fig A.4.1 Linking Active and Passive RFID tags / labels through the DoD / DLA Supply Chain
Fig A.4.2 Savi RFID Tags being read by Soldiers in Iraq
Fig A.5.1 Profile Tesco Frozen Crick Project – Third Party Logistics Contractor Exel
Fig A.5.2 An NBG RFID Tunnel Reader Scanning Cartons Containing Clothing
Fig A.5.3 RFID Readers on Rails Used for Clothing Hanging on Racks
Fig A.5.4 Extra Large Surface Area RFID label Trialled for Postal Applications
Fig A.5.5 Cypak RFID-enabled Pack with Printed Conductive Patterns Connected to an RFID Chip
Fig B.3.1 Flowchart Promotion / Event Execution - Potential Benefits of Low-cost RFID (EPC)
Fig B.3.2 Virtuous Circle – Potential Benefits from RFID in Retail – From Supply Chain to After-Sales
Fig B.5.1 The RFID Frequencies
Fig B.5.2 Frequency Bands Reserved for Non-label RFID Applications
Fig B.5.3 Regional Differences in Usable Frequency Ranges for UHF RFID Labels
Fig C.2.1 Forecast Growth of the Market for RFID Labels Worldwide by Value (US$ Bn) - Breakdown by Region – 2005 to 2015
Fig C.3.1 Forecast Growth of the Market for RFID Devices (tags / Labels) No. of Units Worldwide – 2005 to 2015
Fig C.4.1 Forecast Growth of the Market for RFID Devices Worldwide – Pallet / Shipping Case / Item Level Labels and Non-labels - 2005 to 2015
Note: Product cover images may vary from those shown
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  • Astra Zeneca
  • Avery Dennison
  • Hewlett Packard
  • Kuehne-Nagel
  • M&S
  • Nestle Deutschland
  • MORE
Demand side Drivers
Recent End-user mandates issued to their suppliers have been a primary driver, most notably by the World’s largest retailer Wal-Mart – In 2005, this retailer’s top 100 suppliers has already been implementing the first stage of the pallet / case RFID label mandate and Wal-Mart has established (through independent research) that significant economies are already being achieved by reductions in ‘out-of-stocks’ and increases in ‘on-shelf-availability’ – And this has been the direct result of this retailer’s RFID label initiative.

The example of the Wal-Mart mandate to suppliers was quickly followed by several other leading retailers across North America and Europe.

There has also been an RFID label mandate to suppliers issued by the US Department of Defense (DoD) – another very large customer.

These supplier mandates have been pivotal in triggering huge R&D budgets aimed at meeting the new demands and challenges of making low-cost smart RFID labels happen in the real world.

Other major markets for low-cost RFID labels are also rapidly emerging, notably for the pharmaceuticals & Healthcare products including a number of item level RFID pilots and subsequent roll-outs and also amongst third party operators.

The bulk of demand for low-cost RFID smart labels has so far been for pallet and shipping case levels for low-cost RFID Smart labels, together with a few item level applications for relatively high unit value products, such as pharmaceuticals and also consumer electronics, clothing and accessories, pre-recorded DVDs and various other product categories.
Note: Product cover images may vary from those shown
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Savi Technology
Astra Zeneca
Hewlett Packard
Avery Dennison
Nestle Deutschland
Unilever Germany
Note: Product cover images may vary from those shown