Statistics show that the fashion industry is responsible for an incredible amount of waste, and that number is only expected to increase. Experts believe that, without significant change, the negative environmental impact of the fashion industry will double by 2030. This has caused leaders in the apparel industry to collaborate on innovative new ways to improve the practices and technologies used in the sector and reduce their collective carbon footprint.

The need for change in the retail industry
Many have identified supply chain management as the biggest area for improvement in the retail and apparel industry. Businesses are becoming increasingly cognizant of the impact their products and practices have throughout every step of the production and distribution process. By better understanding each part of the supply chain, business leaders can more easily identify and remedy the inefficiencies posing sustainability challenges.

In today’s consumer landscape, it is more important than ever for businesses — especially consumer-facing businesses like retailers — to emphasize sustainability as consumers are becoming more conscious of the ecological impact of their purchases. According to McKinsey & Company, over 60% of consumers said they would pay more for a product with sustainable packaging. This is testimony to the fact that investments in sustainability tech in retail will pay off not only in sustainability but also potentially in profit.

One technology that is revolutionizing the retail industry is Radio Frequency Identification (RFID), which uses radio waves to read information from an antenna located in a sticker or tag, without requiring physical contact of a line of sight. This technology has numerous applications, such as car keys, employee identification, security access cards, toll billing, and more. Although RFID has been around for decades, innovators have been finding exciting new use cases for the technology that could have massive implications for many industries — including retail.

How RFID is changing the sustainability of retail and apparel
Some might wonder what RFID technology has to do with sustainability in the retail industry. This innovation has the potential to help retail businesses make their business more green by allowing them to manage their inventory and supply chain better. RFID technology gives retailers end-to-end visibility on their product’s lifecycle, allowing them to track every individual item across their supply chain and have deeper insights into their products’ success (or lack thereof) to make more informed decisions about their inventory.

For example, if tracking product inventory through RFID technology alerts a retailer that a particular product is not selling well, the retailer can reduce the amount of inventory they order. In turn, the manufacturer will produce less of this product. Considering that textile production accounts for approximately 20% of global clean water pollution and 10% of global carbon emissions, the opportunity to reduce this waste at the source exemplifies the intense need for technology like RFID that allows retailers to manage their inventory better.

Improved inventory management through RFID technology also reduces retailers’ dependence on transportation for large quantities of products. Since many garments — particularly in the fast fashion industry — are produced overseas in an attempt to cut manufacturing costs, these products must travel thousands of miles before they reach the distribution center or storefront. The airplanes, ships, and trucks used to get these textile products from point A to point B consume significant amounts of fossil fuels, contributing to greenhouse gas emissions.

The benefits of adopting RFID technology for retail businesses are twofold. In addition to the sustainability benefits, retailers benefit from cost savings and the potential security implications of RFID technology. For example, some retailers have begun to find applications of RFID technology that allow them to combat retail theft. With prices that can be as low as $0.04 a unit, depending on the quantity a business orders, RFID technology is an investment that will pay off for most retailers who integrate it properly.

Some may worry that introducing new technology like RFID could only be a temporary fix. After all, what good is cutting waste in the textile industry if the method of doing so is increasing the production of computer chip technology?

However, it is essential to note that most RFID tags are made of small pieces of metal and polyethylene terephthalate (PET) plastic — both of which are easily recyclable. Some innovators have even begun to develop RFID technology using biodegradable materials such as paper, further highlighting how this technology will have a net positive impact on the sustainability of the textile industry.

Using technology like RFID, businesses in the retail and fashion industries can better understand the consequences each aspect of their supply chain has on their sustainability. Although small, RFID chips have the mighty potential to solve many of the fashion industry’s sustainability challenges. There is still work to be done, but the insight provided by RFID technology will allow these sectors to minimize their detrimental impact on the environment.


About the author: Joseph Schlossberg is a VP of Global Sales at Sourcing Solutions International. Joseph began his career in the industry right after receiving his business degree from Seton Hall University in 2014. Sourcing Solutions International is a one-of-a-kind supplier that manufactures both hangers and packaging for the apparel/retail industry. SSI currently has production in China, Bangladesh, Vietnam, Indonesia, Cambodia, India, and El Salvador. SSI is currently working on expansion in regions such as India, Africa, The Middle East, and Europe. Sourcing Solutions International today proudly works in partnership with some of the largest and most well-known retailers and apparel brands; providing paper/plastic/hybrid garment and accessory hangers, labels, hang tags, packaging, and RFID solutions.