Throwing Electronics into the Fashion Mix

FF Fashion

Thu, Feb 19, 2009
The Business Times
By AMIT ROY CHOUDHURY


LOCAL fashion label Tian is using RFID (Radio Frequency Identification) technology to add verve and edge to its business - thus showing technology goes well with fashion. Specialising in womenswear, Tian taps RFID to keep track of creations.

Tian founder Ben Wu tells BT that RFID makes shopping hassle-free and helps retailers around the world improve customer satisfaction and increase sales.

A trained environmental designer, Mr Wu worked for an established design firm for about 11 years before he heeded the call of fashion. After working for some time in Hong Kong, he returned to Singapore in 2000 and set up Tian in 2003 as a new retail label in womenswear.

With the success of the first boutique in Bugis Junction, a second store was opened in Raffles Exchange in 2005. Focusing on clothes for professionals in their late-20s to early-30s, Tian's selling point is its original concept and design. 'This fulfils the market segment demanded by professionals who desire the aesthetic look and feel of modern living,' Mr Wu says.

Running a small outfit, the tech-savvy Mr Wu immediately understood the advantages of using technology to streamline business processes. As a start, he set up an ERP (enterprise resource planning) system which allowed him to access his shops in real time via a broadband connection from any part of the world.

'Using broadband, I can have a look at my company's cash register and talk to my staff via camera and address issues even when I'm abroad.'

Using RFID was the next logical step for Mr Wu. RFID is a data collection technology that uses electronic tags for storing data. The tag, also known as an 'electronic label', is made up of an RFID chip attached to an antenna. Transmitting information, the tags may be battery-powered or derive their power from the RF (radio frequency) waves coming from the reader.

Like bar codes, RFID tags identify items. However, unlike bar codes, which must be in close proximity and line of sight to the scanner for reading, RFID tags do not require line of sight and can be embedded within packages. Depending on the type of tag and application, they can be read at a varying range of distances.

'I use RFID in the backend. When one of my backend staff does an inventory check, all he needs is a notebook hooked on to the RFID system scanner (reader),' Mr Wu says.

He notes that Tian stacks its clothes in batches of 20 each. With each dress having an RFID tag, all the Tian staff has to do is to hold the scanner on top of the stack of clothes and read the counter to check how many pieces were in stock and what their batch numbers were.

'This allows spot inventory check and is much more convenient than using an Excel spreadsheet which needs to be manually updated every day after a physical stock count.'

Being in the forefront of technology has a trade-off in terms of cost. But after a cost-benefit analysis, it was found to be a worthwhile investment, Mr Wu says. 'The immediate advantages are time saved on controlling the inventory and market information accessibility.'

RFID has helped enhance security in the Tian shops. 'We've had problems with pilferage in the past. Our plan is to put an RFID detector on the exit door. Anyone trying to walk out with a product will set off the alarm,' Mr Wu says.

It took around six months to get the system up and running. Tian worked with a consultant to set up the project and despite some teething problems, Mr Wu is generally satisfied with the progress of work.

The company has got some financial help from Spring Singapore. Mr Wu, however, advises other entrepreneurs to try to be self-sufficient in cashflow or reserves before trying to implement such a system.

Tian is looking at expanding its business through franchising, Mr Wu says. 'However, one problem with a consignment-based business in our line of work is that the franchise tends to multiply the number of pieces sold.'

Giving an example, he says that if 10 pieces of a particular dress were sent to a franchise, there's always a tendency to take the 10th piece and mass-produce it and then sell it through the shop.

'With RFID tags on the dresses, it's possible for us to scan the clothes in a franchisee shop and check if there's any counterfeit being sold. That's the beauty of RFID - it allows me to identify fakes.'

Mr Wu notes that by offering real-time inventory visibility, RFID has enabled Tian to monitor and control inventory supply at all times. By automating the inventory tracking process, stores can keep costs down by maintaining optimum inventory levels - avoiding stock-outs and eliminating unnecessary orders. 'Tracking capabilities also make it easier to predict product demand,' he said.

Innovation, which led to a small Singaporean outfit to implement RFID, excites Mr Wu. 'This (the RFID implementation) has been my selfish personal decision, because it excites me and most importantly my staff.'

However, he has a word of caution for others who want to follow him.

'Businesses love continuity, dislike displacement caused by innovation; so innovation does not (immediately) contribute to business operation or bottom line; the lesson I learn here is 'patience',' Mr Wu says.

Shuimu

Hi Where is this job in Bugis Junction? Dont remember a shop name Tian..Thanks

FF Fashion

Think their shop name is in chinese 田