Periodic Reporting for period 1 - DetecTag (A new level of security in fashion retail – RFID hardtag and label with tamper detection function)
Reporting period: 2019-01-01 to 2019-03-31
Shopguard Systems Limited (www.shopguard.com) has become a leading player on the retail security market in the past 25 years. Shopguard provides tailor-made shop security solutions for retailers all over the world. Through our extensive sales channels with subsidiaries and partners on 4 continents, Shopguard has supplied more than 30,000 retail stores worldwide in more than 40 countries to date. Customers include the largest multinational retailers and brands like Marks & Spencer, Tesco, Auchan, Billa, Spar, Tezenis, Reima, van Graaf, Telenor, T-mobile, SFR, Orange, Virgin, Media Markt, Vodafone, Sony, Nokia or Barnes & Noble.
Our most recent innovation, DetecTag is an RFID-based electronic article surveillance solution designed specifically to the needs of fashion retail stores. RFID technology is increasingly being used in retail, however, current solutions focus on its application for logistics and inventory management purposes; failing to utilise the possibilities of the technology for theft prevention.
Our overall objective is to successfully commercialize DetecTag on the global market by the end of Phase 2 of the SME Instrument and achieve a decent market presence and sharp growth. In the present Phase 1 project we validated the DetecTag concept beyond our current customer base to make sure that our long-term development objectives are in line with the current and expected requirements of our target market. We have also assessed key technological dilemmas before entering product development phase.
Our most recent innovation, DetecTag is an RFID-based electronic article surveillance solution designed specifically to the needs of fashion retail stores. RFID technology is increasingly being used in retail, however, current solutions focus on its application for logistics and inventory management purposes; failing to utilise the possibilities of the technology for theft prevention.
Our overall objective is to successfully commercialize DetecTag on the global market by the end of Phase 2 of the SME Instrument and achieve a decent market presence and sharp growth. In the present Phase 1 project we validated the DetecTag concept beyond our current customer base to make sure that our long-term development objectives are in line with the current and expected requirements of our target market. We have also assessed key technological dilemmas before entering product development phase.
We have carried out a comprehensive market study. Our assessment was carried out using two major methods. First, we carried out a comprehensive secondary research to gather the most detailed analyses about our targeted market segments in terms of the “big picture”. Based on the sectorial analysis and reports the economic viability and feasibility of introducing DetecTag in the fashion retail sector has been assessed. We also prepared interviews/survey to gather specific insights “from the field”. regarding the targeted sector to confirm the market and user needs for the product. Our objective regarding the market study was to create a valid basis for our forecasts regarding the market introduction of DetecTag, by analysing the market environment and identifying the interests and preferences of different stakeholders of market introduction, in particular with regard to prospective customers. This necessitated a thorough assessment of the market dynamics, the end-user preferences and interests of key stakeholders the relevant market segment., i.e. the overall size, the most important players and the high-level dynamics of each market segment. Second, we have carried out surveys among two key customer segments ourselves, Based on the updated market information, we were able to refine our business plan.
The average cost of retail shrinkage (loss of inventory) is 1.23% of all sales, significantly worsening profitability of retailers. 38% of inventory loss is owing to shoplifting, and this number is even higher in the fashion/apparel segment. Furthermore, in this segment, the majority of shoplifting is carried out using the methods to be prevented by DetecTag. Retailers spend on average 0.65% of their revenue on loss prevention solutions representing a $130 billion global market for store security solutions. Furthermore, the single most important trend in retail technology is the market uptake of RFID solutions. RFID technology has recently become affordable to retailers, with the majority of them planning its implementation. DetecTag is an RFID-based Electronic Article Surveillance solution designed specifically to the needs of fashion retail stores. RFID technology is increasingly being used in retail, however, current solutions focus on its application for logistics and inventory management purposes; failing to utilise the possibilities of the technology for theft prevention. DetecTag is compatible with existing RFID solutions, which can greatly contribute to its market spread.