RFID is an interesting technology that has generated a great deal of interest in the last few years. For this study, the focus is specifically on the impact of RFID technology in a supermarket. By understanding the details behind RFID and clearing some misconceptions regarding privacy and security, this report aims to clarify the adoption of RFID in major supermarkets such as FairPrice. Towards the end, we aim to provide a summarized solution on how RFID technology can benefit the store and the steps required to implement it in a supermarket.

1. Module: Design Practical 2
Assignment 2: RFID in Retail
M.Des 1.1
Name: Harshal Desai
Lecturer: Arabella Pasquette
Date of Submission
21/12/2011
Word Count: 2334

2. TABLE OF CONTENTS
EXECUTIVE SUMMARY .............................................................................................................. 2
INTRODUCTION......................................................................................................................... 3
RFID 101 ..................................................................................................................................... 3
WHAT IS RFID ......................................................................................................................... 3
HOW DOES IT WORK ............................................................................................................ 4
HOW IS IT DIFFERENT FROM A BARCODE ........................................................................... 5
TYPES OF RFID........................................................................................................................ 6
SECURITY CONCERNS .......................................................................................................... 7
WHERE IS IT ALREADY USED ................................................................................................. 8
RFID FOR CONSUMERS AND RETAILERS ................................................................................. 9
SETUP AND COSTS .................................................................................................................... 9
PROPOSED SOLUTION............................................................................................................ 10
Works Cited ............................................................................................................................ 12

3. EXECUTIVE SUMMARY
RFID is an interesting technology that has generated a great deal of interest
in the last few years. For this study, the focus is specifically on the impact of
RFID technology in a supermarket.
By understanding the details behind RFID and clearing some misconceptions
regarding privacy and security, this report aims to clarify the adoption of RFID
in major supermarkets such as FairPrice.
Towards the end, we aim to provide a summarized solution on how RFID
technology can benefit the store and the steps required to implement it in a
supermarket.

4. INTRODUCTION
One of the reasons for long lines at a checkout counter in supermarkets is
barcodes. People visit grocery stores to purchase their items, the cashier
scans the selection, there is an audible beep and a computer registers the
amount to pay. Bar codes have been around for decades, and are literally
on almost every product available today. However, an interesting fact would
be that while barcodes were patented in 1952, it took them 30 years to
become popular. (History of Bar Codes)
There were only 15,000 suppliers using it in 1984. By 1987, there were 75,000
suppliers. The reason for the change???
Wal-Mart
Wal-Mart is one of the biggest retailers on the planet. When Wal-Mart started
using barcodes for their inventory listing, every other retailer began to catch
up and the popularity of the barcode increased threefold.
The same situation is occurring today, only now there is a new technology
called RFID. When Wal-Mart speaks, the retail industry listens. Wal-Mart
notified its top 100 suppliers to install RFID tags on all products by January 1,
2005. It is only a matter of time that RFID replaces the bar code. (Meloan,
2003)
RFID 101
RFID technology was patented in 1973 (Genesis of the RDIF Tag), but its
commercial applications are becoming more popular recently.
WHAT IS RFID
RFID are essentially Radio Frequency Identification microchips that do not
require a direct line of sight in order to scan them. The tags can be used and
reused multiple times if necessary and can be smaller than a grain of rice
(Hitachi Unveils Smallest RFID Chip, 2003)
The chips act as a transmitter and receiver, “listening” for a radio frequency
sent by an RFID reader. The frequency activates the RFID tag and in turn it
transmits a unique ID code back to the reader. The tags don’t run on
batteries in most cases and are powered directly by the radio signal, making
their lifespan technically limitless.

5. HOW DOES IT WORK
RFID works on several operating frequencies depending on the type of range
required for reading.
FREQUENCY TYPE
Low Frequency
High Frequency
Ultra High Frequency
Microwave Frequency
FREQUENCY RANGE
30-300 kHz
3-30 MHz
300MHz – 3GHz
>3GHz
SCANNING RANGE
50cm
3m
9m
>10m
Table 1: RFID Operating Frequencies (Dobkin, 2005)
Singapore had widened its RFID frequency band in 2004 to ensure that their
local inventory tracking systems will interoperate with those in Europe and U.S.
and vice versa. Several major retailers that export goods to Singapore
committed to invest more than seven million dollars towards improving RFID in
the island city. (Singapore Widens RFID frequency, 2004)
An RFID tag typically contains
-
Encoding/Decoding Circuitry
A Memory Microchip
Antenna
Communication control chip

6. The tags cost up to 50 cents, however researchers from Sunchon National
University in South Korea invented a new type of tag using ink laced with
carbon nanotubes instead of the traditional silicon type. This considerably
reduced the cost of production to 3 cents per tag. This is because instead of
using a microchip, the tag could be directly printed as part of a package.
(Grossman, 2010)
HOW IS IT DIFFERENT FROM A BARCODE
There are three primary differences between an RFID tag and a bar code.
RFID tags are scanned via radio communications and do not require to be
oriented in the direction of a scanning device. This means that RFID tags can
be read through other objects, clothing etc. Certain types of tags could also
be signalled from great distances, however for the purposes of a retailer such
as FairPrice, one only needs a short distance (approx. 5-10 feet) in order to
have a scanner identify an RFID tag.
RFID tags also have a unique identification system. Bar codes generally
indicate the type of item purchased, e.g. a carton of milk. What RFID does is
not only indicate the product type but can also uniquely distinguish one
carton of milk from the other cartons by using an encrypted serial code
known only to the manufacturer and retailer.
Lastly, bar code scanners require a laser beam to scan the codes
individually. This takes up a lot of time and effort. RFID tags can be identified
by a handheld scanner at the rate of 100 tags per scan. Theoretically, an
individual managing an inventory for a supermarket would increase the
speed and efficiency by 90% by using RFID technology. (RSA Labs - FAQ on
RFID)

7. TYPES OF RFID
There are three different type of RFID tags: Active (battery-driven), SemiPassive (also battery-driven) and Passive (activated through inductive energy
of radio frequency), and are used in different applications.
Active
Tag
Semi Passive Tag
Passive Tag
Power Source
Battery
on Tag
Battery for Chip
Operation Only. Radio
wave Energy from
Reader for
Communication
Radio wave energy
from Reader for both
Operation and
Communication
Tag Signal
Availability
Always
on, 100
feet
Only within field of
reader
Only within field of
reader, less than 10
feet
High
Low
Very Low
Very
Low
Low
Very High
Signal Strength
Tag
Required
Signal Strength
from Reader
Typical
Applications
Useful for tracking high-value
goods that need to be scanned
over long ranges
Useful for high-volume
goods, where items
can be read form short
ranges.
Table 2: Comparison of RFID Tags (Meloan, 2003)
For supermarkets such as FairPrice, a passive tag would be ideal. If the
products would be marked with a passive tag, passing through the checkout
gates would activate them via a signal, complete the transaction and then
deactivate them. It reserves the privacy of the consumer at home too since
the products need to be at very close ranges to an RFID reader in order to
scan them.

8. SECURITY CONCERNS
Many consumers would be worried about their privacy and security when it
comes to using RFID tags for groceries. Certainly, one can buy items like a
pair of jeans or a pack of cigarettes with anonymity today and it will not be
the case with RFID technology. However, supermarkets already have
methods to keep track of these purchases should they require it. Several
CCTV cameras are installed in the store, and bar codes scanned are
automatically inventoried as well.
Regarding privacy at home, there are currently two methods to block RFID
tags from being scanned once a purchase is complete
1. A kill command
Probably the most direct approach to protect consumer privacy
ensuring they don’t carry live RFID tags after purchasing the items from
a store. A kill command is a special code that is sent out through the
radio signal telling the RFID chip to permanently disable itself so it is no
longer readable. These kill commands are known only to the
manufacturer and retailer to prevent misuse
2. RSA Blocker Tag.
These are special tags having a unique code that is unreadable by any
scanner unless they have a correct authorization key. This means that
only scanners that have access, for instant, supermarket scanners with
a 256bit code (256 digit password), would be able to read the
information from an RFID chip.
This prevents unwanted scanning of purchased items and protects the
privacy of the consumers.
(RSA Labs - Protecting Consumer Privacy)
It is crucial to understand that new technology does not just affect privacy
but also solves critical problems. Researchers are constantly working to make
RFID more reliable, pervasive and privacy-friendly. There will be some minor
concerns about privacy, but they are no bigger risk than the issues people
already have with social media and cellphones.
RFID technology, at least for the supermarket, will ensure the security
standards of the consumers are fulfilled and all data collected regarding
purchases within the store is restricted to the retailer for overall market
analysis of the products.

9. WHERE IS IT ALREADY USED
RFID is already available in Singapore; cellphone payments, public transit
cards such as the EZ link cards, ERP gantry, casino chip tracking, animal
identification at the zoo, several inventory systems etc.
Regarding supermarkets, Wal-Mart and MetroStore UK are the biggest users
of RFID technology today. Wal-Mart even has a published requirement
mandate that guides vendors about placing RFID tags on products.
Considering the size of this organization, this mandate impacts thousands of
companies worldwide.
Singapore’s Infocomm Development Authority (IDA) is already working on
creating a multi-frequency RFID tag that can be used globally. Regarding
supermarkets, they are focusing on FairPrice and the Grocery Logistics of
Singapore (GLS) to deploy RFID in their distribution centers for product
tracking. It is only a matter of time before they open the technology for
consumer benefits too. (Singapore's RFID Journey, 2004)
In fact, two of Singapore’s fashion retailers are already using RFID technology
for their products, specifically to manage their inventory. They are Bella East
Fashion Studio and 77th Street Pte. Ltd. They adopted RFID in early 2007 and
using passive tags to ensure the privacy of their consumers.
Currently the employees are responsible for placing the tags on their
products, but they are hoping to have the manufacturers even take control
and tag the garments themselves. (Swedberg, 2007)
One of the most recent
applicants, a company
named ShelfX created
smart shelves with RFID
capabilities and is currently
testing their products in
local stores in Colorado,
United States as of late
October this year. (Smart
Figure 1: ShelfX technology (Source: http://www.shelfx.com/shelfx-news)
Shelves Abolish Lines at
Supermarket, 2011)

10. RFID FOR CONSUMERS AND RETAILERS
Using RFID technology will enable real-time inventory mapping for retailers.
The entire point of this is to keep track of their supply both through their
distribution centers and warehouses.
By doing so, the retailers can ensure their products are rarely out of stock,
since items that are near depletion would be notified to the staff and either
have them ordered directly through a software or manually depending on
retailer’s needs.
Since RFID contains unique identifying content for every product, its also
possible to track expiry dates of each item within the store and even during
the inventory process at warehouses. This virtually guarantees alerting the
staff when an product is past its expiry date and would contribute towards
supplying better quality products to the consumer.
Regarding consumers, RFID technology means not having to wait in lines.
Complete control is given to the consumer to just pick the items they require
and simply walk out. A receipt dispenser would be kept at the end just as a
safeguard to put the consumer’s mind at ease that they weren’t
overcharged. (Prater & Frazier, 2005)
SETUP AND COSTS
To carry out the initial experiment, each shelf costs around $10 per
installation, including the cost of the server.
To have an RFID shelf based system setup and running across an entire store,
there are a few criteria that must be satisfied.
1. Scanning the area to for existing radio frequencies. Its essential that
these frequencies don’t interfere with the ones emitting from the RFID
tags.
2. Setting up a server in the store to maintain communication with the
RFID tags
3. Setting up the scanning gates at the store and linking them with
computers that monitor and track the items purchased for inventory

11. purposes. This also constitutes of tracking the number of items
remaining on the shelves and a system to alert staff in case of errors or
when any item is close to running out of stock.
4. Software upgrades on the computers to get real time inventory
monitoring and automated ordering, along with collecting valuable
real time statistics of products.
Since the system relies mostly on wireless communication, there isn’t much
wiring and setup required and the process is relatively quick and easy.
Extra cost would be required in terms of salary for an on-hand technician for
the possibility of an event where the system malfunctions.
When consulted with the manager of ShelfX technologies, sharing with him
the size of a FairPrice Xtra store and the type of items, initial costs of a full
setup are estimated at $40000.
PROPOSED SOLUTION
Considering a hypermarket such as FairPrice, our ideal solution would be to
use a variant of ShelfX technology on a small section of FairPrice products to
test the feasibility before revamping the entire store.
The first step would be to conduct market research on the top 30 essential
items bought by the target consumer and place them in a special area
having RFID enabled smart shelves.
Consumers would be given a special payment card, similar to an EZ Link card
and encouraged to purchase items via tapping the card onto the shelf and
taking the necessary products.
The next step is for them to simply walk through the RFID scanners placed a
few meters before the exit, take the receipt issued by a device near the
scanner and walk out.
This will automatically make the consumer realize the potential of RFID
technology as it eliminates the conventional queuing system.
Another feature that can be added is a guarantee clause to ensure
consumers they won’t be overcharged by using RFID. They can build up trust

12. by giving a promotion stating that if any consumer finds that they were
overpriced, not only will that item be given for free, but their entire shopping
list purchased in that day will be free of charge.
The error rate of passive RFID tags has reduced considerably from the 10%
back in 2006 to just 2% in 2011. It should be adequate for the store to provide
such a guarantee. (Elamin, 2006)
Since the obvious drawback is for people who are persistent on paying cash,
there should always be a few traditional cashiers in the store. This will not only
give consumers a choice, but also help in making an even clearer distinction
within their minds. Once those who are standing in line, see that other
consumers are just walking out with ease, they will naturally gravitate towards
the RFID solution.
This should be an ideal method to allow a smooth transition for the consumers
towards the new RFID system: Tap, take, walk out.
To see a demo of the proposed solution, please visit the following link:
http://on.fb.me/th6ika

13. WORKS CITED
Hitachi Unveils Smallest RFID Chip. (2003, March 14). Retrieved December 19,
2011,
from
RFID
Journal:
http://www.rfidjournal.com/article/articleview/337/1/1/
Singapore Widens RFID frequency. (2004, November 5). Retrieved December
19,
2011,
from
Fibre2Fashion:
http://www.fibre2fashion.com/news/NewsDetails.asp?News_id=10698
Singapore's RFID Journey. (2004). Retrieved December 19, 2011, from IDA
Singapore:
http://www.itu.int/osg/spu/ni/ubiquitous/Presentations/4_poon_RFID.pd
f
Smart Shelves Abolish Lines at Supermarket. (2011, October 27). Retrieved
December 19, 2011, from ShelfX: http://www.shelfx.com/news/shelfxsmart-shelves-abolish-lines-and-offer-retailers-enhanced-inventorymanagement
Dobkin, D. (2005, October). RFID Frequency Bands. Retrieved December 19,
2011,
from
Enigmatic
Consulting:
http://www.enigmaticconsulting.com/Communications_articles/RFID/RFID_frequencies.html
Elamin, A. (2006, October 03). Multiscan RFID uses reflectors to reduce errors.
Retrieved December 19, 2011, from FoodProductionDaily.com:
http://www.foodproductiondaily.com/Supply-Chain/Multi-scan-RFIDuses-reflectors-to-reduce-errors
Genesis of the RDIF Tag. (n.d.). Retrieved December 19, 2011, from RFID
Journal: http://www.rfidjournal.com/article/articleview/392/1/2/
Grossman, L. (2010, March 26). The End of Bar Codes. Retrieved December
19,
2011,
from
Wired.com:
http://www.wired.com/wiredscience/2010/03/rfid/
History of Bar Codes. (n.d.). Retrieved December 19, 2011, from About.com:
http://inventors.about.com/od/bstartinventions/a/Bar-Codes.htm
Meloan, S. (2003, November 11). RFID. Retrieved December 19, 2011, from
Sun
Developer
Network:
http://java.sun.com/developer/technicalArticles/Ecommerce/rfid/

14. Prater, E., & Frazier, G. (2005). Future Impacts of RFID on e-supply chains in
grocery retailing. Supply Chain Management: An International Journal,
134-142.
RSA Labs - FAQ on RFID. (n.d.). Retrieved December 19, 2011, from RSA
LAboratories: http://www.rsa.com/rsalabs/node.asp?id=2120
RSA Labs - Protecting Consumer Privacy. (n.d.). Retrieved December 19, 2011,
from RSA.com: http://www.rsa.com/rsalabs/node.asp?id=2119
Swedberg, C. (2007, October 31). Two Singapore FAshion Retailers Use RFID to
Track Inventory. Retrieved December 18, 2011, from RFID Journal:
http://www.rfidjournal.com/article/view/3721