Executive Summary (This is a document excerpt)

The initial hype around the potential for adding an RFID tag to every item in a supermarket persuaded RFID manufacturers to target the retail supply chain. Retailers and CPG manufacturers bought into the idea that they could use RFID tags economically if they cost €0.05. But complex manufacturing techniques, a costly assembly process, and a lack of demand means the price of RFID tags won't drop to €0.05 in the next eight years. The Forrester model forecasts that RFID tag prices will decline, on average, only 9% year on year. To find a cheaper alternative, CPG manufacturers and retailers need to minimize tag functionality, target simple usage scenarios, or wait for a manufacturing breakthrough.

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