October 22, 2008. - The first European meeting of manufactures and suppliers of the international shoe industry took place last week in Barcelona in order to deeply analyse the effects of loss prevention and how to advance the application of source tagging within the sector. Representatives from Reno, Camper, OAT Systems, American Apparel & Footwear Association and the ESADE Business School were some of the outstanding participants.

On average, every European buys 5 pairs of shoes each year. Within a short time, this sector has grown significantly, partly through adapting new technologies of commercialization and “at source” protection programs.

A prime example of growing “source tagging” initiatives can be found in Spain, where the number of shoes with integrated EAS protection (source tagged) has exceeded the 100 million mark. Shoe source tagging is the integration of a label into the shoe which automatically destroys itself upon use. Thanks to this hidden protection method, shoes can now be displayed in pairs. This allows the customer to touch and try the product, eliminating the need for staff assistance.

In a climate of economic uncertainty, the footwear industry is facing two key challenges: competing for fewer customers and the inevitable surge in shrink. These are combined with the reality of shorter lead times and the increased demands for fast fashion, which means that shoe retailers and manufacturers need to concentrate on discovering better ways of protecting and expanding their business while driving in-store efficiencies.

Reno, an important European player within the shoe industry, is one of the source tagging pioneers who, in 2007, initiated an ambitious project of source tagging solutions based on Checkpoint Systems’ RF solutions. Michael Memel, Divisional Director Purchasing Coordination HR Group / Reno, confirms: “In times of international expansion we count on a strong partner with innovative and reliable technology to improve internal logistic processes on the one hand and create a modern shopping environment on the other hand.”

For Rafael Alegre, Vice President and General Manager of Apparel Labelling Solutions, “driving the transition from traditional EAS loss prevention to RFID visibility through services like Check Net will become a top priority for shoe manufacturers and retailers worldwide in the coming times. This will drive operational efficiency as well as customer shopping experience”. Alegre states: “One of our clients saved up to 70% of costs thanks to the implementation of restructured logistic solutions”.

The event closed with a presentation of Lluis Martinez-Ribes, specialist in retail innovation and professor of the ESADE Business school. For Martínez-Ribes, “…a shop is like the seller’s loudspeaker. It is comparable to an advertisement which enables the customer to touch, smell, hear and taste the product. It’s the best place to create a brand!” .

The Shoe Source Tagging Conference discussed market trends, industries’ “Best Standards”, data mining, RFID-based inventory visibility along closed-loop supply chains and EAS source tagging opportunities.