First of all, because the RFID-tags are discussed to replace the barcode system in retail business in the future, some innovative uses for them should be discovered. Hence, this proposes an interesting possibility to offer real-time price and product availability information of all possible products sold in physical stores. For example, all the grocery stores could present online real-time information of the prices and of the availability of their product assortment by updating the prices online through RFID to the Internet. Moreover, the customer could then follow these price changes real-time by their mobile phones, or the price could be sent to a digital RFID-screen at the shelves.
What is more, this would generate many positive implications:
The efficient and agile pricing process would benefit the resellers
By presenting the real-time price and availability information in the Internet in a common market place platform, the markets function economically more efficiently, because the customer finds the goods at best distance and cheapest price conveniently.
Huge possibilities to match real, intangible and inconcrete needs and wants of the customer by finding the corresponding goods. For example, if the customer wants to prepare a fine pasta meal, the program would present some recipe choices and finally the price and availability information accordingly.
Are the grocery stores willing to establish such a platform where it would be extremely easy to compare prices between rivals. This would undoubtetly be good for the consumers, but not for the stores as it could lead to a price war between rival grocery stores.
Does the customer value such service enough that she would visit the internet site to find out where to shop for groceries today, or is the decision made based on some other factors?
Actually in Verkkokauppa they already have some kind of digital price screens on the self and they use Infrared system to update the prices via remote connection. It rwas written in the first (1.) reference article that "in 2004 the Rfid tags cost 0.50€ a piece, which would have resulted in 300.000€ extra costs. One manager at Verkkokauppa commented that they would use rfid-tags, if the cost was around 0.20-0.30 a piece." Therefore the cost of manufacturing these rfid-tags is one challenge that should be overcome. Unfortunately the links below are articles written ion Finnish, but I'm sure that there are many similar articles written in English in the Internet.
1. http://www.tietokone.fi/lukusali/artikkelit/2004tk10/UU TISET.HTM (in Finnish)
2. http://www.digitoday.fi/data/2008/03/27/verkkokauppacom -rasvaa-tilausten-kasittelya/20088690/66 (in Finnish)
If you are interested in pricing and things that can effect on pricing, in addition to RFID, one similar kind of subject is QR code. At least in Asia it is already possible to go to a store and read this kind of a code with your mobile phone. The idea is that you will get information on where you can buy the same product cheaper and you also get a map (depending on what kind of phone you have), which shows how to get there. This is probably “seller’s worst nightmare” because it allows consumers to compare prices more. At least when making big buying decisions this kind of service could be successful.
My boss showed me (2yr ago) couple good videos about RFID technology in the retailing business. Expecially fridge + RDIF was a very innovative idea. Unfortunately, I didn't find them from net :( But these two I found: http://ec.europa.eu/research/conferences/2007/food2030/ docs/food-2030-gerd-wolfram_en.pdf
http://www.towers.fr/essays/strategic-management.html
I hope they are useful.
You could consider why don't normal retailers adopt even the simplest technology to show prices digitally and update price databases.
Comment to Matti: I bet that the most important benefit of RFID for retailers is warehouse management (meaning shelf availability etc), prices etc are additional benefits. I'm still waiting for the day when the stores operate without cashiers because of RFID tech. Actually in the UK's Tescos has been self-service cash desks for some years. It's pity that Finnish retailers are trailing behind Germany (Metro) and the UK (Tesco) in this sector.
Comment to Emma: I agree that warehouse mgmt is the most important area in this context (only price differences being very annoying). However, in Finland, for example, IKEA (Espoo) is implementing self-cashing system too.
