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Zara is really committing to fast fashion these days. According to WSJ, the retailer recently incorporated RFID (radio frequency identification) chips into its clothing inventory to constantly replenish trends at a breakneck pace. This isn't exactly new: RFID chips are something that JCPenney and Walmart have tried and failed to use successfully in the past. Zara has embedded the chips in security tags on clothing so they stay protected and can be reused when employees detach the tags at checkout.
The RFID tags ensure that Zara's inventory will never run dry (or at least not too often). They allow the company to easily track what's selling well and what's lagging on the sales floor. Zara can now carry out electronic inventory checks every six weeks, as opposed to the manual method that employees used to engage in every six months.
· Zara Builds Its Business Around RFID [WSJ]
· Who Copied Kenzo Best: Zara or Forever21? [Racked]
· GQ: Get Real, Fast Fashion Isn't Going Anywhere [Racked]