Empowering Omni-Channel Consumer Trust with Innovations

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1 Empowering Omni-Channel Consumer Trust with Innovations Ken Lam, Head of Marketing & Industry Engagement, GS1 Hong Kong June 2016

2 Global Standard, Local Services GS1 is a globalized standard organization with presence in 150 countries, and is dedicate to make supply chain SIMPLIED and more EFFICIENT. GS1 Hong Kong

3 GS1 Standards 3

4 What is IoT ( 物聯網 )? IoT (Internet of Things) refer to any smart interconnected devices (e.g. RFID, sensors, etc.) that enterprises or organization adopted to obtain more visibility into the identification, location, and condition of products, assets, transactions, or even people with the ultimate goals to be able to trace their pedigree and to drive more effective, timely business decisions or to improve customer interactions. 4

5 IoT Smart City Innovations Over 22 million Octopus are in circulation & processes over 12 million transactions a day offers convenience to the public HK International Airport, first airport in the world to implement efficient RFID enabled baggage handling using UHF Gen2 tags Convenience RFID based toll collection RFID library offers convenience to patrons Efficient RFID based e-charm management system implemented in a popular local temple RFID based material testing & train maintenance ensure safety for commuting RFID corpse management in local public hospitals..many more 5

6 IoT Smart City Innovations - Industry Siemens has said these smart things are starting to power a fourth Industrial Revolution to Industry 4.0 Cisco-made sensors can, when worn by miners, detect the presence of life-threatening gases. Others can sense if workers are moving or still perhaps injured In Philadelphia, they ve invested in solar-powered garbage cans that crush waste and send a missive to a dispatcher requesting pickup when they re full 6

7 互聯網 + 一物一碼 時代 One Object One Code 7

8 The History - GS1 and MIT Ignited IoT - Auto-ID labs and EPCglobal 8

9 The EPC Standard for IOT Identify Electronic Product Code Capture Low cost EPC UHF Gen2 RFID tag Share EPC Information Services (EPCIS) 9

10 eztrack Data Pipe (empowered by EPCIS) Identifiers Symbologies & Carriers SGTIN LGTIN SGLN SSCC GDTI GIAI GRAI GSRN SGCN CPI LEGACY KEYS DataMatrix QRCode Databar (stacked) Databar RFID NFC ibeacon Cold Chain Logger Capturing Devices & Apps Web Applications Native Applications Mobile Applications Barcode Scanners Mobile Devices Handheld Readers RFID Readers Cold Chain Readers Connectivity Network WIFI Mobile Bluetooth Enterprise Applications Enterprise Internal Systems FLEET ERP WMS POS MGT BI System Data Exchange / Sharing External Parties ERP WMS EPCIS Enterprise eztrack Data Pipe (EPCIS 1.1: ISO/IEC 19987: ISO/IEC 19988:2015) Security Management 10

11 Object Traceability = EPCIS Electronic Product Code Information Services (EPCIS) is an open standard used to track movement of objects as they move through the supply chain. The data shared at each read point in the supply chain provides WHAT, WHEN, WHERE and WHY of each read. IoT powered by EPCglobal standard ONS (Object Name Service) EPC Code (Serialized product code) EPCIS (Electronic Product Code Information Services) Discovery Service Internet DNS ( Domain Name System) IP address HTTP (Web service defined by W3C) Internet Search Engine 11

12 Converting RFID Big Data to Analytics In retail, RFID is seeing rapid growth for apparel tagging - that application alone demands 3 billion RFID labels in More that 25 billion RFID tags will be used on retail apparel and shoes in IDTechEx Executives think that retail big data insights are most beneficial for: merchandising (53%) marketing (48%) store operations (42%), e-commerce (42%), supply chain (27%), finance (23%), loss prevention (21%). Source: IDTechEx forecast in the new report RFID Forecasts, Players & Opportunities Source: 1010data Retail Study: Executives Discuss the Impact and Further Potential of Big Data in the Retail Industry 12

13 Omni-channel challenges Need to fulfill from anywhere and within short time Low inventory accuracy & no visibility to inventory levels across channels Multiple customer touch points making it difficult to track customer behaviors in association with products 13

14 RFID enables accurate inventory level 1 2 Retail Store Scanning Warehouse Scanning Mobile RFID Scanning Device 3 Further reporting 14

15 Smart Apparel (Smart Shelf O2O inventory visibility) Cycle Count Backroom & sales floor inventory stock take Inventory visibility for O2O 1. RFID scanner to scan items in the backroom & sales floor 2. Update inventory captured for different stores 3. Update store inventory record for stores with items reserved for O2O fulfillment Stores Style no / GTIN Color Size In story inventory QTY QTY reserved for online shop Total Wan chai Pink S Pink M Pink L

16 Smart Apparel RFID Capturing Consumer Behaviors for Analytics Consumer take clothes from the RFID senor hanger for trial while reader automatically sense the taken away items and send to the dashboard RFID smart shelf hanger (with RFID sensor) 16

17 Smart Apparel RFID Capturing Consumer Behaviors for Analytics Smart Fashion Store Product info Product info Product info When all tagged items are hanged on the hanger or placed on the shelf, display product information Windbreaker Color : orange Size: M QTY : 1 Lady Jean Color : Blue Size: 26 QTY : 1 Skirt Color : Pink Size: M QTY : 1 Blouse Color : White Size: M QTY : 1 When the item is taken out / sold, the system detected and trigger a flashing alert to inform sales person to refill 17

18 Big Data Making Big Business

19 The Solution: RFID Tray Collect information of EPC/RFID tagged items Display product information Capture customer information Capture data : items displayed, customer behavior, occasions, demographics etc 19

20 RFID Tagging on the jewelry items Jewels with RFID tag consumer behavior analytics dashboard Smart Tray (Reader) Salesperson displays the jewels on Smart Tray to retrieve the product data, and enter the consumer data for analytics. Alter will be trigged if the tagged item leave the tray for certain period of time Benefits Reducing stock taking time by 50% Improving sales conversion rates Enhancing corporate image as a forerunner and industry leader innovative technology Segment analysis Consumer selection patterns Cross sell opportunities

21 Assuring Genuine Pearl with an Unique Identifier

22 Can you tell which one is Genuine A Grade South Sea Pearl? A B In terms of : luster / color / size / shape / spot 22

23 Creating Brand Loyalty by Origin to Consumer Hands 1 Retailers / resellers validate the authenticity of the pearl necklace with RFID reader & show unique ID / EPC eztrack Interface GS1 Hong Kong Scan to capture the nurturing pearls to keep track of the progress (pedigree) & show in eztrack ON SCREEN(from commissioning to plantation, harvesting. Retail) 23

24 Creating Brand Loyalty by Bringing Origin to Consumer Hands 24

25 25 Manufacturer Distribution Channel Visibility Mengniu Dairy Project Approach: Farm Identification Serialized QR codes printed on the packaging Distributors / reseller can validate the origin with mobile apps Distributors / Consumer can check the product location and status

26 Manufacturer Distribution Channel Visibility Mengniu Dairy Scan QR Code Consumer can retrieve company information, product information and other promotion information. Menqniu can make use of these information to analyze product planning and enhance customer servicing. Consumer scan QR code

27 Challenges of Counterfeiting Counterfeiting is seriously impacting the brand s image and revenue Counterfeiting simply copying the packaging and the barcode Consumer really difficult to tell between authentic and counterfeit products copied and often counterfeiters copy barcode for fake products 27

28 GS1 Value+, Anti-Counterfeit Funded by: Enabled by: Features Brand Owner/ Manufacturer Anti-counterfeiting Channel management Consumer engagement Distributor Against parallel imports Distribution management Retailer e-couponing: discount, free sample, lucky draw Extended product info: brand story, video, etc

29 GS1 Value+, Anti-Counterfeit Solution Overview Label SGTIN Secure Code GS1 PA Solution Product SGTIN 1 Look up Web Service Discovery Service FONS Product GTIN 2 Data + EPCIS Network + GEPIR Repository + Data Aggregator Secure Label Management eztrack (EPCIS) BarcodePlus (Local Data Pool) 3 Results Product & Company Information Genuine Information epedigree

30 GS1 Value+, Anti-Counterfeit Solution Overview Traceability Applications e-pedigrees Query Interface Service (QI) Capture Interface Service (CI) EPCIS Repository Visibility Elements Certified EPCIS Network What.. When.. Where.. Why..

31 GS1 Value+, Anti-Counterfeit Secure Code Validation and Traceability e-pedigree using eztrack (EPCIS) 1 Label Serial Secure Code 4 2 Secure Code Validation: Successful Validate Already Registered 5 GLN lookup for urn:epc:id:sgln: Need to Recall Not ready to Sell 31

32 GS1 REAL Barcode, Anti-Counterfeit Make your barcode not only a barcode, but as a weapon for your brand protection

33 GS1 REAL Barcode, Anti-Counterfeit Solution Overview A barcode can NEVER be copied as a genuine product one from REAL BARCODE with patented encryption technology. Encrypted barcode digital printing file with hidden digital pattern 33

34 GS1 REAL Barcode, Anti-Counterfeit How it works Genuine product Encrypted barcode printing file provided by GS1 Special encryption pattern hidden in the barcode GS1 HK trusted mobile apps Counterfeit product Barcode copied from the genuine product packaging Special encryption pattern CANNOT be copied GS1 HK trusted mobile apps Before Purchase, consumer can verify the product is genuine or fake

35 GS1 REAL Barcode, Anti-Counterfeit

36 GS1 IoT Initiatives IOT Centre Industry Engagement Facilitate Adoption Public Policy IOT Awards Recognize IOT Synergize Partners Ecosystem IOT Conference IoT Advisory Council

37 Awards Objectives Igniting Smarter Hong Kong, Smarter Living: Echoing the Digital 21 Strategy paper to encourage the innovative use, development and adoption of advance technologies specifically in Internet of Things and Big Data technologies to uplift business operation efficiency, industry competitiveness and service qualities, to enable Hong Kong to stay in the forefront of the increasingly digitalized world. Furthermore, it is to encourage Innovative applications and services developed from Public Sector Information in Hong Kong to create smarter business and better daily life. Best Smart Hong Kong ICT 2016 Award Streams (Gold / Silver / Bronze winners in each stream) Internet of Things of Things Big Data Application Public Sector Information Applications 37

38 Hong Kong IoT Centre Originally established in April 2013 and hosted by GS1 Hong Kong with the support from the Innovation and Technology Commission of the HKSAR Government and the Hong Kong Science & Technology Parks. To be relocated in GS1 Hong Kong office in Dec Consisting of six zones, in which visitors can touch and feel the power of IoT technologies in various industries. Smart Retail Smart Logistics Smart Healthcare Smart Food Safety Smart Consumer Trust Smart City 38

39 For more information, contact: Ken Lam, Head of Marketing and Industry Engagement GS1 Hong Kong Please visit

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