Retailers worldwide are grappling with the economic and reputational damage caused by counterfeit products, which are flooding markets and deceiving consumers.
However, the emergence of affordable RFID technology, specifically Near Field Communication (NFC) chips, offers a promising solution to this growing problem.
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Richard Price, CTO of Pragmatic Semiconductor, shares insights into how these advancements are revolutionising product authentication and protecting both brands and consumers.
RFID technology vs traditional methods
In discussing how RFID technology, particularly NFC, differs from traditional methods of product authentication, Richard Price highlights a significant weakness in older systems.
“More traditional methods like holograms or QR codes have one key problem – they can be easily replicated,” says Price. This vulnerability has left industries vulnerable to counterfeiting, costing billions of pounds annually.
“NFC (Near Field Communication), a subset of RFID technology, provides a more secure solution by storing encrypted data that is difficult to duplicate,” Price explains.
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By GlobalDataThe unique NFC identifier chips embedded in each product enable authentication at any point in the supply chain, simply by tapping a smart device.
This innovation significantly reduces the risk of counterfeit goods reaching consumers, safeguarding brand reputation and ensuring the integrity of products.
Recent advancements in affordability and accessibility
The conversation then shifts to the recent advancements that have made RFID technology more accessible and affordable for retailers. Traditionally, the implementation of NFC tags was cost-prohibitive due to the reliance on high-cost silicon chips.
“With the razor-thin margins that retailers work to and the huge volume of product they need to produce, it simply wouldn’t be cost-effective to have a silicon chip embedded into every single item,” Price notes.
However, advancements in semiconductor manufacturing have changed the landscape. “New manufacturing methods use advanced materials and low-temperature processes that consume far less energy and water, and fewer harmful chemicals,” Price explains.
These innovations not only drive down costs but also significantly reduce the carbon footprint, making scalable, item-level intelligence a reality.
The new generation of RFID chips are ultra-thin and flexible, allowing them to be deployed almost anywhere with minimal constraints on form-factor.
Ensuring product authenticity and consumer trust
Richard Price emphasises the critical role that NFC technology plays in ensuring the provenance and authenticity of products, which is crucial in preventing counterfeit goods from entering the market.
“NFC gives rapid access to unique, encrypted data that can prove authenticity at item level, providing an unalterable record of a product’s origin, journey, and ownership,” he explains.
This level of traceability is invaluable in industries where product integrity is paramount, such as pharmaceuticals, cosmetics, and luxury goods.
Furthermore, the benefits of these low-cost, flexible RFID chips extend beyond authentication. “The fact that they’re thin and flexible means you can pretty much apply them anywhere, from clothing and textiles to curved surfaces such as bottles and coffee cups,” says Price.
These chips can be embedded directly into packaging, remaining imperceptible to the touch and not interfering with product branding.
In addition to enhancing product security, they also offer opportunities to drive customer loyalty through personalised content delivered via a simple tap of a smartphone.
Price also highlights the durability of these new chips. “They’re a lot more durable than traditional silicon chips, being built to withstand continuous movement and deformation, and resistant to physical damage,” he says.
This durability, combined with their low cost and lower carbon impact, makes them ideal for large-scale deployment, helping retailers to meet sustainability targets while strengthening consumer relationships.
The future of retail with RFID technology
Looking to the future, Richard Price envisions widespread adoption of RFID technology having a profound impact on retail and consumer trust.
“Adoption of advanced material semiconductors fabrication has the potential to radically reduce the prevalence of counterfeit goods while dramatically increasing consumer loyalty and trust,” he predicts.
By minimising losses from counterfeiting and improving operational efficiency, next-generation NFC solutions can drive long-term brand value and make retailers more competitive in an increasingly crowded marketplace.
Moreover, the concept of Digital Product Passports, enabled by RFID technology, offers a dynamic and detailed digital record of a product’s lifecycle.
“Digital Product Passports provide a dynamic, detailed digital record of a product’s lifecycle from start to finish,” says Price, “helping to determine the product’s authenticity and track it across the supply chain in real-time.”
This not only combats counterfeiting but also ensures compliance with regulatory requirements, further enhancing consumer trust.
As RFID technology continues to evolve, its potential to reshape the retail landscape is undeniable. The affordability, flexibility, and security of these new-generation NFC chips offer retailers a powerful tool to protect their brands, build consumer trust, and thrive in a competitive market.
