The labels and packaging space continues to evolve, as industry leaders pioneer new technologies that will dramatically change the consumer experience for years to come.

Francisco Melo, vice president and general manager, Global RFID for Avery Dennison, recently sat down with Label & Narrow Web to discuss his company’s endeavors in this field, as well as where he sees the market heading in the future.

L&NW: What are some of the main hurdles to adoption in today’s market?
FM: I often get asked this question. One is the readiness among the retailer, brand, customer, or whomever you’re talking to. It’s readiness to adopt new technology. It’s true that the technology helps, but it’s also true that you might not be able to act on the information and the data that the technology is providing you.

For a retailer, you need to understand the level of inaccuracy you have and understand the problem you’re trying to solve. Once you know you’re inaccurate, then do you have the systems to provide the activity to adopt the technology?

When specifically talking about retail, there’s also an element of having disciplined store operations. You need stores that are going to perform the functions and comply to the standards, and obviously, you need management support. The typical ROI we see in many deployments is less than a year in payback. When you look at the investment retailers make, this is a very telling case because of what it provides them on the bottom line.

L&NW: How would converters get engaged in this space?
FM: The key is making the adoption of the technology simple. The converter must be in a “ready mode” to integrate this technology into their press operations — that’s fundamental. In some industries, the retailer totally gets it, and others it’s a work in progress. At some point, the integration with the packaging and labels is going to happen. The way that converters are going to help simplify this process is by integrating it.

At Avery Dennison, we support our converter base and provide them with the technical support and expertise needed for them to be ready to adopt and integrate the technology.

L&NW: What materials and printing processes are most converters using for smart labels?
FM: It varies. By and large, the most common substrate out there in the retail space, and in other segments, is a pressure sensitive material. In the apparel space, you’ll also see some printed fabric labels, as well. As you get into some of the more premium brands, they’ll use fancier hang tags with special papers and special graphics.

There is a clear benefit when converters are able to integrate the technology flawlessly into the label. It’s one thing if I buy the inlay and include it on my package, and it’s another thing if I’m able to actually have it integrated inside my label or hang tag, and that typically brings more value as you don’t have to buy an additional label. That provides an added cost benefit, as well.

In terms of printing, it’s mostly thermal printing. That’s the most common form, which is inkjet-based. We also have companies that are using offset and flexo. We could print the labels in nearly any way, but thermal is the most common one.

L&NW: What is the potential for this technology, and could every item one day have a “smart” label?
FM: Yes, absolutely. At some point in the future, every item will have a unique digital identity-and intelligent label. Our ultimate goal is to provide the technology for all these items to be born digital. Working with a worldwide converter base, we have the unique technology that allows us to build off that. There will be a world where every item is digitized, allowing us to bridge the physical and the digital.

We at Avery Dennison bring the best of both worlds to the converter base. An extensive portfolio of labels materials and the world’s largest selection of UHF RFID inlays.

The first part of the interview can be found here.