Can RFID Recover 181 Billion Dollars in Loss Every Year in China's Retail Industry?

On June 1, the "Sixth National Business Security Survey Report" released by the Commercial Consortium for Commercial Loss Prevention of China Chamber of Commerce showed that in 2016, the amount of retail sales in China was as high as 181 billion yuan and the business loss rate was 0.71%. In the recent five years Loss rate increased year by year. Inside and outside theft is the main cause of business losses.

The report shows that the main cause of business losses, the average single theft of internal theft 486 yuan, the average single external theft 298 yuan loss. Therefore, the control of theft, is an important business loss prevention task. The main manifestation of internal theft is the theft of goods, the most important manifestation of the theft of cash. Traditional loss prevention methods have failed to save the retail loss prevention, loss prevention technology upgrades without delay.



Traditional air defense + anti-technology role in weakening

At present, the way of retail loss prevention mainly adopts the way of civil air defense and anti-technology defense. Many retail companies have a loss prevention department, which is evolved from past security and defense divisions. The core of work also undergoes subtle changes and loss control becomes its core content. Although civil air defense will bring deterrence to the thieves, it will arouse the resistance of consumers and the limited perspective will make it difficult to conduct a comprehensive surveillance.

As retail technology advances, major domestic and foreign retailers have introduced modern loss prevention measures including: Electronic Product Anti-Theft (EAS); Closed Circuit Television Monitoring System (CCTV); and cash register monitoring system incorporating a cash register and CCTV monitoring system (POS / EM) and so on. E-commerce anti-theft system is usually placed in the mall obvious location, can be directly detected in the commodity anti-theft tag, so that it issued a sound and light alarm.

The purpose of this approach is to have a strong deterrent effect and to curb the stolen intentions from the very beginning, which is very clear for reducing the number of foreign pirates in business. However, the existing EAS anti-theft system has the shortcomings of low detection rate, system false alarm, weak anti-interference ability, metal shield, narrow protection width and non-recyclable soft label, which can not meet the existing anti-theft needs.

On June 1, the "Sixth National Business Security Survey Report" released by the Commercial Consortium for Commercial Loss Prevention of China Chamber of Commerce showed that in 2016, the amount of retail sales in China was as high as 181 billion yuan and the business loss rate was 0.71%. In the recent five years Loss rate increased year by year. Inside and outside theft is the main cause of business losses. The report shows that the main cause of business losses, the average single theft of internal theft 486 yuan, the average single external theft 298 yuan loss. Therefore, the control of theft, is an important business loss prevention task. The main manifestation of internal theft is the theft of goods, the most important manifestation of the theft of cash. Traditional loss prevention methods have failed to save the retail loss prevention, loss prevention technology upgrades without delay. Traditional air defense + anti-technology role in the weakening At present, the main way of retail loss prevention is the use of air defense + anti-technology approach. Many retail companies have a loss prevention department, which is evolved from past security and defense divisions. The core of work also undergoes subtle changes and loss control becomes its core content. Although civil air defense will bring deterrence to the thieves, it will arouse the resistance of consumers and the limited perspective will make it difficult to conduct a comprehensive surveillance. As retail technology advances, major domestic and foreign retailers have introduced modern loss prevention measures including: Electronic Product Anti-Theft (EAS); Closed Circuit Television Monitoring System (CCTV); and cash register monitoring system incorporating a cash register and CCTV monitoring system (POS / EM) and so on. E-commerce anti-theft system is usually placed in the mall obvious location, can be directly detected in the commodity anti-theft tag, so that it issued a sound and light alarm. The purpose of this approach is to have a strong deterrent effect and to curb the stolen intentions from the very beginning, which is very clear for reducing the number of foreign pirates in business. However, the existing EAS anti-theft system has the shortcomings of low detection rate, system false alarm, weak anti-interference ability, metal shield, narrow protection width and non-recyclable soft label, which can not meet the existing anti-theft needs. CCTV is more installed because it combines functions of security, in-store management and anti-theft. It mainly aims at unexpected unexpected situations, night burglary and fire prevention, monitoring the staff in stores, preventing theft of goods, and so on. The effectiveness of closed-circuit monitoring system is mainly deterrence of internal and external deterrence, and record the entire process of committing the crime. The downside is that closed-circuit surveillance systems are often installed in a covert location to remotely monitor a specific area, while the camera's view has areas that are not covered, making it difficult for the mall to be crowded. The closed-circuit monitoring system of the shopping mall needs 24-hour special staff. In general, it is very hard for anyone to continuously monitor the images for a long time in actual operation. Therefore, it can not guarantee the timely detection and suppression of the theft of goods. For example, the cash register process to take a missed or wrong sweep behavior, this behavior is relatively hidden, the general monitoring screen can only see a scan action, but it is not clear whether the scan, if there is no scan, we monitor the screen Also can not see, this situation has successfully realized the supermarket drain. From the above mentioned report, we can also see that nowadays the losses caused by acquaintances committing crimes are even greater. Once the internal staff are familiar with the workflow, they can easily avoid theft measures. Therefore, the traditional retail loss prevention methods can no longer meet the current needs. RFID brings new changes to retail loss prevention 1, rapid cycle inventory, reduce man-made losses. Although retail anti-theft technology is constantly upgrading to improve, but the retailer for the source of the loss, the proportion of each loss are unknown and can not be analyzed. The use of RFID technology, a tag attached to the goods with RFID tags can clearly understand the way of goods theft, type, quantity, lost time and other information. Using RFID technology in merchandise, managers can quickly cycle through inventory and track goods in real time. Staff only in the warehouse and sales area, respectively, inventory cycle, monitoring real-time inventory, the difference can be found in the changes in the operation of goods, a clear understanding of the loss of goods link. After discovering the ways, scenes and abnormalities of various thefts, the supermarket administrator can discover the management loopholes, optimize the management, and formulate the corresponding preventive measures. In addition, RFID can quickly inventory characteristics, so that participation of staff to reduce, also reduces the chance of theft occurred. Of course, RFID technology compared EAS system, there is the flexibility of the display of goods, adjacent to the shop entrance of the weak protection of the issue of goods. At this stage can use the EAS system based on RFID technology, in the commodity protection device with RFID chips, a label, two kinds of technology, both alarm and disk library. 2, to achieve product traceability, reduce natural loss. Low-temperature fresh food is prone to deterioration, the use of active temperature shelf labels can sense the temperature, real-time accurate price change at the same time, with handsets, base stations and software, real-time display freezer temperature, when the temperature is high or low, the system Will be prompted through the background management system, message tips or label signal prompts to remind staff to adjust the temperature in time to avoid loss of food caused by the refrigerator power to deal with the deterioration of the loss. In addition, the temperature tag can also display the existing inventory of the commodity in real time. When the commodity is sold, the system transmits the updated data to the sensing layer through the sensor. When the staff receives the inventory shortage, the system can promptly replenish the cargo goods. This allows food retailers to avoid wastage and natural wear-out while meeting the energy saving and emission reduction requirements of retail outlets. 3, automatic cashier, reduce cash loss. Japan Rosen Group has been able to test a fully automatic cash register based on radio frequency tags. With the help of radio frequency tags, the cash register can instantaneously read the product information and complete the settlement without removing the product from the shopping basket and scanning the bar code. The way of automatic cashier reduces the cash flow caused by the cashier. What RFID can do in the retail business is not just loss prevention, but also can improve supply chain efficiency, improve service quality in stores, and more. At present, the technical premium brought by RFID to the retail industry has begun to appear, and many retail enterprises are beginning to deploy the RFID system. At the summer exhibition of 2017 China International IoT Expo held on August 16-18 in Shenzhen Convention and Exhibition Center, Shenzhen Yuanwangu Information Technology Co., Ltd., Spiritix (Beijing) IOT Technology Co., Ltd., Jiangsu Dongda Integration Many companies involved in the field of RFID retail applications, such as the Company and Shanghai Fuen Electronic Technology Co., Ltd., will participate in the exhibition. At that time, advanced retail solutions and smart products will be brought to market. Interested parties are welcome to exchange and cooperation.

CCTV is more installed because it combines functions of security, in-store management and anti-theft. It mainly aims at unexpected unexpected situations, night burglary and fire prevention, monitoring the staff in stores, preventing theft of goods, and so on.

The effectiveness of closed-circuit monitoring system is mainly deterrence of internal and external deterrence, and record the entire process of committing the crime. The downside is that closed-circuit surveillance systems are often installed in a covert location to remotely monitor a specific area, while the camera's view has areas that are not covered, making it difficult for the mall to be crowded. The closed-circuit monitoring system of the shopping mall needs 24-hour special staff. In general, it is very hard for anyone to continuously monitor the images for a long time in actual operation. Therefore, it can not guarantee the timely detection and suppression of the theft of goods. For example, the cash register process to take a missed or wrong sweep behavior, this behavior is relatively hidden, the general monitoring screen can only see a scan action, but it is not clear whether the scan, if there is no scan, we monitor the screen Also can not see, this situation has successfully realized the supermarket drain.

From the above mentioned report, we can also see that nowadays the losses caused by acquaintances committing crimes are even greater. Once the internal staff are familiar with the workflow, they can easily avoid theft measures. Therefore, the traditional retail loss prevention methods can no longer meet the current needs.

RFID brings new changes to retail loss prevention

1, rapid cycle inventory, reduce man-made losses. Although retail anti-theft technology is constantly upgrading to improve, but the retailer for the source of the loss, the proportion of each loss are unknown and can not be analyzed. The use of RFID technology, a tag attached to the goods with RFID tags can clearly understand the way of goods theft, type, quantity, lost time and other information.

Using RFID technology in merchandise, managers can quickly cycle through inventory and track goods in real time. Staff only in the warehouse and sales area, respectively, inventory cycle, monitoring real-time inventory, the difference can be found in the changes in the operation of goods, a clear understanding of the loss of goods link. After discovering the ways, scenes and abnormalities of various thefts, the supermarket administrator can discover the management loopholes, optimize the management, and formulate the corresponding preventive measures. In addition, RFID can quickly inventory characteristics, so that participation of staff to reduce, also reduces the chance of theft occurred.

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