TECHNOLOGY DAYS, NOVEMBER 2019

SMART RETAIL

TECHNOLOGIES

1

Agenda

Introduction

Smart Retail with RAIN RFID

Smart Logistic

• Sensors

Unmanned Stores - NFC

2

Edge computing

Smart In-store

Smart shelf (temp sensor, bluetooth, wifi)

UHF tags on products

Passive NFC tags on product

Dynamic price labels

Video

Handheld reader

UHF overhead reader

Bluetooth beacon

WiFi

BTE

Big data analytics

Mobile

RF readerDigital signage board

Cold chain active tag

PoS terminal

Magic mirror

Interactive kiosk

Cloud computing

Retail GatewaySmart Retail Reader

Technology positioning along the supply chain

Manufacturing & distribution POS & inventory Consumer interaction

up to 10 centimeters

up to 1,5 meters

up to 15meters

Apparel retail RFID Adoption

UHF/ RAIN RFID to Enable Smart Logistics and Inventory

RAIN RFID

• 10m+ read range

• Reading of 600+ objects per second

• Most cost efficient contactless tag solution

• Reading without line of sight

• Read/write capability

• Passive technology

Retailer Benefits

98% inventory accuracy results

Up to 20% sales boost with item availability

9% decrease in shrinkage

50% reduction in out-of-stocks

96% time reduction with smart inventory

Omnichannel:

the Future

To be able to execute on the delivery

of goods the customer ordered via a

warehouse, local or other store, or

direct from the manufacturer, a

retailer must have:

✓ integrated IT systems

✓ highly accurate inventory counts

✓ and a high level of inventory

visibility.

Omnichannel leverages RAIN RFID item level tracking:

▪ NO FRUSTRATIONS caused by items offered online, but not at stores and vice versa

▪ NO WAITING for assistant to search for items in back room storage.

▪ FRICTIONLESS „Click & Collect “ buying process. All available items listed for buy.

No order cancelations caused by wrong inventory data

▪ Up to 20 % Sales Boost

▪ Faster sales cycles

▪ Less desperate price markdowns for products reaching end of season

▪ Lower buffer stocks, without creating availability problems.

CONSUMER

RETAILER

8

Decathlon accounted 5% of its growth to the use of RAIN RFID.

„2nd half of 2018 we reached that 100% of items sold at Decathlon bear a

RAIN RFID tag“. This means we are going to intensivy RAIN RFID usage

to the benefits of sport users and teammtes“

“As more and more of our guests shop us online, they expect a great,

seamless experience between digital and stores. Adopting RFID

technology is one big step Target is taking to make sure we deliver “

RAIN RFID enabled Omnichannel Retailers speak up

9

▪ The RFID enabled smart fitting room detects what

you have in and provides you with suggestions.

▪ Interacting with the mirror, customers can call a

store assistant with other models and sizes for

fitting.

▪ During the fitting, this mirror recommends clothes

and accessories to complete the image. If the

buyer is not ready to make a purchase on-site, she

can choose to send information about the product

to her mobile phone.

▪ Sales has increased substantially after they

opened the smart fitting room, and the visitors are

now spending more time in the store.

Smart technology assists you

in the store

10

▪ Decathlon, one of the worlds biggest sports retailers

does it already.

▪ For checkout and payment, you simply dump your

purchase items into the RFID enabled checkout box.

▪ The products appear on the screen with the

respective pricing.

▪ You pay with your card and leave the store without

unnecessary waiting delays.

With RFID enabled self-checkout,

retailers and customers save time

11

New/Future categories in Retail

Fashion accessories

Shoes

Cosmetic/Perfumes

Jewellery/Watches

Homeware/Kitchen accessories

Food/Fresh Items

12

UCODE 8 uses at least 20% less power than any other

RAIN RFID chip in the market

➢ increases read ranges.

➢ increases inventory data accuracy.

➢ offers market highest speed for inventory counts (20% faster)

➢ frees up time for retail employees to spend with customers and increase sales

➢ allows for smaller and truly global RFID label designs

UCODE 8 is supplied in billions of units delighting retailers, brands and consumers.

UCODE 8

The best performing RAIN RFID chip in the market

13

UCODE 8 key features

Read Sensitivity: -23 dBmWrite Sensitivity: -18 dBm

Write Speed: 32 bits in 1.2 ms.

User Memory: 0 or 32 bit

EPC Length: 128 or 96 bit

UCODE 8: 128 bit EPC, no user memory

UCODE 8m: 96 bit EPC, 32 bit user memory

SELF ADJUST GS1 PRIVACY MODE

16 bit BRAND IDENTIFIER

PRODUCT STATUS FLAG

TID: 96 bit

Kill and Access Password

MEMORY SAFEGUARD

LARGE AREA GOLD PADS

MAX BACKSCATTER

96 bit pre-serialization

Writing Reading Features

Assembly

www.nxp.com/docs/en/data-sheet/SL3S1205-15-DS.pdf

UCODE 8 Datasheet

14

Zebra CBR 4000 U8 91x35

A,B,C,D,F,G,I,K,L,M,N,Q,U

https://rfid.auburn.edu/temp/suppliers.php/

https://rfid.auburn.edu/documents/

Boingtech, 1020600, 40x15

A,B,C,D, ,G, , , M,Q

Checkpoint, Vortex UCODE 8, 42x16

A,B,C,D, , G, ,K, , ,Q,

TAGEOS, EOS 241 U8 , 42x16

A,B,C,D,F,G, , ,M,N,Q

Smartrac, Miniweb, UCODE 8, 42x16

ETSI

I,K

Avery Dennison, AD-324u8, 41.4x16

ETSI

K

Avery Dennison, AD-324u8, 41.4x16

FCC

A,B, ,D,F,G,M,Q,W2,W5

SML, GB4U8, 42x16

A,B,C,D,F,G, M,N,Q,W2,W5

Smartrac, Miniweb UCODE 8, 42x16

FCC

A,B,D,G,M,Q,W2,W5

Already 35 different UCODE 8 designs have successfully

passed Auburn certification.

SML, GB19U8, 29x15

Q

Avery Dennison, AD-310u8, 41.4x29

A,B,C,D,F,G,I,K,M,Q,W2,W5

Smartrac Eagle Green, U8 42x28

A,B,C,D,F,G,I,K,M,Q,W2,W5

Zebra CBR 2000 U8 95x8

A,B,C,D,F,G,I,K,L,M,N,Q

Smartrac Accessory, U8 30x15

Q

SML,GB19U8 29x15

Q

UCODE 8 Auburn certified RFID inlays

PUBLIC 15

BEYOND

TRACK AND TRACE:

SMART SENSORS

PUBLIC 16

Using passive RFID technology in retail

MANUFACTURING DISTRIBUTION RETAIL END-USER

TRACK AND TRACE

INVENTORY MANAGEMENT

ANTI TAMPERING

ANTI COUNTERFEITING

PUBLIC 17

Moving to battery power

MANUFACTURING DISTRIBUTION RETAIL END-USER

ACTIVE CONDITION MONITORING

PUBLIC 18

Moving to battery power

MANUFACTURING DISTRIBUTION RETAIL END-USER

ACTIVE CONDITION MONITORING

These are the parameters that can be sensed in an electronic way

PUBLIC 19

Wine

PUBLIC 20

Berries and vegetables

PUBLIC 21

NTAG SmartSensor

• Single chip for creating semi-passive sensing NFC solutions (tags)

− Semi-passive

▪ Periodic sensing powered by battery

▪ Passive communication over NFC when touching

− Flexible and autonomous: open ARM Cortex M0+, large non-volatile memory

− Easy to apply: just add a battery and an NFC antenna

PUBLIC 22

Solution concept with UHF RFID Alarm feature

NFC

UHF RfID

PUBLIC 23

Combining NFC and UHF RFID

• Configuration via NFC

• Tracking via UHF RfID

• Full check/data readout via NFC

• End user sign-off via NFC

PUBLIC 24

Condition Monitoring

PUBLIC 25

Benefits

Smart Logistics is about insights

• Track and Trace

• State of goods

But also about incidents and responsability

• If goods are mishandled, when did it happen?

• Who is responsible/liable?

Clear transfers of goods

• From suppliers to carriers

• Between carriers

• From carrier to recipient

Documentation transfer is needed: e.g. using Blockchain

PUBLIC 26

NHS3100 SensorBoard starter kit

UNMANNED

STORES

PUBLIC 28

Trends

November 22, 2019COMPANY PUBLIC28.

§

Urbanization

• Enable city-wide offering of grocery shops to townspeople

also in suburbs

• Efficient catering in rural areas for day2day items

• Cater in offices and industrial areas

Legal constraints

• On Sundays & public holidays „closed“

• Labor work resricted to a special amount of hours/day

Convenience

• People do not want to be timely restricted

• Short ways

• No more waiting in line

• No more rush to last minute shopping for essentials

Green thinking (CO² reduction)

• Enable short distances to the next shop (<5km)

PUBLIC 29

BENEFIT STORE OWNER BENEFIT COSTUMER

• Being close to customers

• Reduce theft

• Reduced OPEX (€ 20/m²/month)

• 100% customer loyalty data

• Short distances for daily & impulse

shopping

• 24/7 offering to customers

• No overtime-/holiday pay

• Reduced effect of wage increases

• Convenience of 24/7 availability

• Support impulse purchases

• 24/7 offering to customers

• 4 staff for 40 stores**

• No more out-of stock items***

• Shop around the clock

• Grab and go experience

• Environmental thinking

• „Green“ company

• Sustainable business

• Rural area-wide coverage of shops

• Short distances to drive

• Shop around the block

Benefits

November 22, 2019COMPANY INTERNAL29.

§

* NZZ, https://www.nzz.ch/wirtschaft/detailhandel-china-hightech-verdraengt-tante-emma-laeden-ld.1484380

** NZHerald, http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11952991

*** Ernest & Young, http://www.rfidjournal.com/articles/view?17358

PUBLIC 30

Unmanned stores concepts

November 22, 2019COMPANY PUBLIC30.

• Vending machines

• Smalles footprint

• Up to 100SKU‘s

• Box store concept

• Small footprint

• Up to 600SKU‘s

• Traditional store retrofit

• Large footprint

• Up to thousands of SKU‘s

PUBLIC 31

Technologies

November 22, 2019COMPANY PUBLIC31.

• AI – Machine learning

• Traditional barcodes

• RFID – UHF & HF solutions

PUBLIC 32

• 99.9% read accuracy

• Possiblity to freely store data on chip (Best before dates)

• Products can be used instantly (no need to „learn“ new products)

• No user manipulation required for scanning at checkout

• Minimal maintenance required for infrastructure

• Multiple use

− In logistics (warehouse)

− In store (inventory, theft detection, marketing compliance)

− Post purchase (direct consumer interaction)

Why customers choose RFID

NEW CONCEPTS

DRIVEN BY

TECHNOLOGY

PUBLIC 34

The Inventory-less store

November 22, 2019COMPANY PUBLIC34.

PUBLIC 35

ICODE benefits along the value chain

November 22, 2019COMPANY INTERNAL35.

• Product ID

• Best before dates

• Alergene information

• Link product to cloud

• Automated ERP data

transfer

• UID serialized NDEF programming for link to the cloud

• Centralized programming of lables

• De-centralized programming of labels

and supply chain control via BYOD

www.myunmannedstore.com/12345

12345 =

• 99.9% accuracy

• Authentication check

• Product traceability

• Grey market combat

• Direct OEM delivery

possible

26.04.2018 Italy

Cloud backend

PUBLIC 36

ICODE benefits along the value chain

November 22, 2019COMPANY INTERNAL36.

• Authentication check

• Product info & promotions in-

store

• Up & cross selling via mobile

• Payment

• Product information like allergene‘s

• No user action required to scan products at checkout

• No moving parts needed at checkout

• Up & cross selling via mobile

PUBLIC 37

ICODE benefits along the value chain

November 22, 2019COMPANY INTERNAL37.

• After-sales services

• Warranty guarantee

• Social communities

• End customer feedback

• Marketing campaigns

for verified purchases

• Selling marketing

campaign channels &

data to OEMs

• Customer usage data

• Authorized online re-

orders

• Connecting offline users to your online experience

• Learning how end consumers use OEM brands

EMERGING

TRENDS

PUBLIC 39 • Source: https://www.mobilemarketer.com/news/kraft-heinz-brings-mobile-activated-packaging-to-walmart/563556/

• https://www.mobilemarketer.com/news/malibus-new-scannable-bottles-unlock-mobile-game-branded-swag/556590/

Emerging trend – Marketing campaigns

November 22, 2019COMPANY INTERNAL39.

• Brands information flow of how customers

use products ends at distributor

• Direct consumer interaction

• NFC tags are tagged up to 4x more often

then QR codes

• No more exclusion of iOS customers due

to iOS13

PUBLIC 40

Emerging trend – In-store marketing compliance

November 22, 2019COMPANY PUBLIC40.

• 1/3rd of promotion sets not installed in stores

• up to 50% of installed promotion sets are not maintained

________________________

• In-store marketing compliance is a huge topic for brands

• Brands are willing to pay extra for compliance proof

PRODUCT

FEATURES

PUBLIC 43

NXP assigns

Identifier to customer

Customer specific ID program-

med during wafer test

CID can be read with extended fast

inventory read command

- Only genuine labels will respond

during inventory calls

- Full NFC compliance for mobile phone

interaction (iPhone and Android)

ICODE – Customer specific identifier

1 2 3

PUBLIC 44

NXP assigns

Identifier to Brand

Brand ID programmed

during wafer testCustomized

- Brand ID

- Dedicated Ordering Code

UCODE 8 – Brand Identifier

16-bit

Brand ID

1 2 3