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An Exploratory Study of REID Benefits for Apparel Retailing  

Kim, Hae-Jung (School of Merchandising and Hospitality Management, University of North Texas)
Kim, Eun-Young (School of Merchandising and Hospitality Management, University of North Texas)
Publication Information
Journal of the Korean Society of Clothing and Textiles / v.30, no.12, 2006 , pp. 1697-1707 More about this Journal
Abstract
Relentless advances in information technology are constantly transforming market dynamics of the retail industry. RFID is an emerging innovative technology that can reduce labor costs, improve inventory control and increase sales by effective business processes. Apparel retailers need to recognize the benefits of RFID and identify critical success factors. By focusing on apparel retailers, this study attempts (1) to identify the reality of RFID associated with benefits; and (2) to prospect the implementation of RFID in apparel retailing. We conducted a focus group interview with selected six panels who were experts of retail industry in the United States to obtain data regarding RFID attributes. Content analysis was used to generate related excerpts and classify 31 attributes of RFID benefits from the meaningful 173 responses. For experience of RFID, retailers were familiar with RFID technology and expressed the belief that RFID basically would support an existing retail system for speed to markets. However, retailers addressed the level of experience with RFID technology that they were still in the early adoption stage among few innovative companies. The content analysis identified five dimensions of RFID benefits for apparel retailing: Visibility and Velocity, Revenue Enhancement, Customer Service, Security, and Employee Productivity. This result lends support to the belief that RFID has a significant potential to streamline supply chain management, store operation and customer service for apparel retailing. This study provides intellectual and managerial implications far practitioners and researchers by postulating the effective use of RFID in the apparel retail industry.
Keywords
Apparel retailing; Benefit; Information technology; RFID; Supply chain management;
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