Some Misunderstandings About Security Tags

In the next five years, security tags will become the fastest growing tags in the industry. More and more retailers and manufacturers are beginning to realize the added value of visual security tags. And this is also the reason why the demand for security tags is increasing.

Loss is one of the key indicators of store operation. Especially during major festivals, the risk of theft faced by retailers is inevitably increased. Relevant data show that alcohol, food, and electronic products are the most easily stolen goods. Therefore, the deployment of loss prevention measures in stores will help retailers reduce losses and ultimately improve profit margins.

However, although security tags have obvious advantages in protecting merchandises, there are still retailers who refuse to invest in such tags. And their refusal to invest is nothing more than the following misunderstandings:

Tag placement is too labor intensive.

Retailers can transfer this part of their labor costs to other parts of the supply chain, such as manufacturing plants or distribution centers. Store staffs don’t have to spend time labeling products. This process is completed in the factory to ensure the consistency of goods. This also means that shop assistants can spend more time on replenishment and sales.

Integrate labels with existing packaging lines. In addition, this project helps reduce losses and generate additional value in the supply chain, such as increasing sales and reducing shelf out-of-stock event.

The purpose of security tags is only loss prevention.

ECR has done a research: every 1% increase in shelf availability can help increase sales by 0.5%. Loss prevention professionals believe that security anti-theft tags are not only anti-theft but also an all-around solution that adds extra value to store operations. After deploying this program, more merchandise will be available on the shelves to honest shoppers, ultimately increasing sales.

More importantly, a large number of RFID tags have entered the market. Retailers have also acquired tools to optimize their consumer experience. Retailers can use RFID technology to get real-time status of goods in the supply chain. And the retailer can accurately determine the location of merchandise. You can deploy this solution in the distribution center. Of course, there’s no problem deploying it in stores or warehouses. With a handheld reader, store staff can quickly locate the desired merchandise. This is very important for the replenishment process.

Security tag will reduce customer experience.

For retailers, the loss caused by theft is more like a double-edged sword. On the one hand, they want to attract consumers through good and clear brands. On the other hand, they want to deter shoplifters and prevent them from stealing. Therefore, it is particularly important to find a balance between the two. Open display merchandise can obviously help increase sales. But it also creates opportunities for dishonest customers to steal.

Today, tags are smaller, more accurate and more versatile than ever before. Retailers can design and manage the placement of tags according to their brands. Integrating visual security information with commodity packaging ensures that brand information remains conspicuous for consumers.At the same time, placing the tag in the best detection position ensures faster checkout and optimizes customer satisfaction.

Security tag creates less value than their price.

Clearly understanding the amount of loss is a prerequisite for executing the project. And it is important to accurately predict which tags will receive a high return on investment on which products. This includes inaccurate inventory, time spent by employees looking for goods, and loss of orders due to shortages.

According to relevant data, the source tag program can reduce external loss by 50%. It also ensures the availability of merchandise and open display.

In addition, it is worth reflecting that store employees did not use anti-theft equipment correctly. Compliance operation and staff training time are also one of the pain points related to security tags in stores. Anyway, as long as the merchandises entering store are equipped with anti-theft tags, retailers can simplify the store process, reduce errors and improve the efficiency of employees, and ultimately achieve high return on investment.

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