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Technavio Announces Top RFID and Tagging Trends Impacting the Global EAS Market

March 28, 2016 04:00 PM Eastern Daylight Time
LONDON--(BUSINESS WIRE)--Technavio’s latest report on the global electronic article surveillance (EAS) market provides an analysis of the key trends expected to impact the market through 2015-2019. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline.

Supermarkets and apparel outlets will continue to be the major buyers of EAS systems. Countries like India, Brazil, and many African countries are yet to adopt EAS systems on a large scale. Therefore, in the near future, these countries will contribute significantly to the growth of the global EAS market. “Theft prevention at retail stores by using EAS systems is one of the major drivers of the global EAS market,” says Sunil Kumar Singh, lead analyst at Technavio for automatic identification system research.

The top four emerging trends influencing the global EAS market according to Technavio’s ICT research analysts are:

Source tagging

Source tagging refers to adding EAS tags to the product package or the product itself at the time of manufacturing. It saves time as the staff in the retail stores do not have to apply tags to the products. This helps the staff focus on other aspects of work such as workplace management.

Source tagging is an effective way of regulating the supply chain. Apart from reducing the labor cost, source tagging reduces the tagging cost as the tags can be recycled and reused.

Dural Tags

EAS tag detachers can be bought for a few dollars at black markets and can therefore be misused. Thieves use these detachers to remove tags from products in retail stores. This renders the EAS systems at the exits ineffectual.

To address the issue, Dural Tags have been introduced. These tags can be detached only by high-strength magnetic release. Other black market detachers are ineffective against Dural Tags.

Integration of RFID with EAS systems

Generally, EAS systems are used only for theft prevention, whereas radio frequency identification (RFID) systems are used to track customers' favorite products and prevent theft. The RF-EAS system integrates both of these, and includes a disposable electronic circuit and an antenna that are attached to the product. The system responds to a specific frequency emitted by a transmitter antenna at the exit gate. The receiver antenna of the system picks up the frequency response from the label.

“Thus, the system helps minimize shrinkage and enables retailers to track fast-selling products and replenish their inventories accordingly,” says Sunil.

Incorporation of data analytics in EAS systems

EAS systems now have increased capabilities, from theft control to advanced data analytics. This has helped retailers track customer behavior and buying patterns. With solutions like Integrated Visitor Counting and VisiPlus overhead sensors by Checkpoint Systems, retailers are able to determine the number of customers entering and leaving their stores.

The solutions also help find the missed opportunities where sales could have been achieved, thereby improving business operations.

Two of the top vendors in the global EAS market, as researched by Technavio analysts are:

  • Checkpoint Systems
  • Tyco Retail Solutions

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About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

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