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Empowering Omni-Channel Consumer Trust with Innovations Ken Lam, Head of Marketing & Industry Engagement, GS1 Hong Kong May 2015

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Page 1: Ken Lam, GS1 Hong Kong

Empowering Omni-Channel

Consumer Trust with Innovations

Ken Lam,

Head of Marketing & Industry Engagement, GS1 Hong Kong

May 2015

Page 2: Ken Lam, GS1 Hong Kong

© GS1 Hong Kong 2015

Global Standard, Local Services

GS1 Hong Kong

“GS1 is a globalized standard organization with presence in 150 countries, and is dedicate to make supply chain SIMPLIED and more EFFICIENT.”

Page 3: Ken Lam, GS1 Hong Kong

© GS1 Hong Kong 2015

GS1 Standards

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Page 4: Ken Lam, GS1 Hong Kong

© GS1 Hong Kong 2015 4

IoT (Internet of Things) refer to any smart interconnected devices (e.g. RFID, sensors, etc.) that enterprises or organization adopted to obtain more visibility into the identification, location, and condition of products, assets, transactions, or even people with the ultimate goals to be able to trace their pedigree and to drive more effective, timely business decisions or to improve customer interactions.

What is IoT (物联网)?

Page 5: Ken Lam, GS1 Hong Kong

© GS1 Hong Kong 2015

IoT Smart City Innovations

• Over 22 million Octopus are in circulation & processes over 12 million transactions a day offers convenience to the public

• HK International Airport, first airport in the world to implement efficient RFID enabled baggage handling using UHF Gen2 tags

• Convenience RFID based toll collection • RFID library offers convenience to patrons

• Efficient RFID based e-charm management

system implemented in a popular local temple

• RFID based material testing & train

maintenance ensure safety for commuting

• RFID corpse management in local public hospitals

…………..Many more

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Page 6: Ken Lam, GS1 Hong Kong

© GS1 Hong Kong 2015

互联网+“一物一码”时代 – One Object One Code

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Page 7: Ken Lam, GS1 Hong Kong

© GS1 Hong Kong 2015

The History - GS1 and MIT Ignited IoT - Auto-ID labs and EPCglobal

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Page 8: Ken Lam, GS1 Hong Kong

© GS1 Hong Kong 2015

The EPC Standard for IOT

• Electronic Product Code Identify

• Low cost EPC UHF Gen2 RFID tag Capture

• EPC Information Services (EPCIS) Share

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Page 9: Ken Lam, GS1 Hong Kong

© GS1 Hong Kong 2015

iBeacon

ezTRACK Data Pipe (empowered by EPCIS)

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DataMatrix QRCode Databar (stacked)

Databar RFID NFC

Symbologies & Carriers

Identifiers SGTIN LGTIN SGLN SSCC GDTI GIAI GRAI GSRN SGCN CPI LEGACY KEYS

Connectivity Network WIFI Mobile Bluetooth

Web Applications

Native Applications

Barcode Scanners

Mobile Devices

Handheld Readers

RFID Readers

Capturing Devices & Apps

Mobile Applications

External Parties Enterprise Internal Systems

ERP WMS POS … FLEET MGT BI

System Data Exchange / Sharing

Enterprise Applications

Cold Chain Logger

Enterprise ezTRACK Data Pipe (EPCIS 1.1: ISO/IEC 19987:2015 + ISO/IEC 19988:2015)

ERP WMS …

EPCIS

Cold Chain Readers

Security Management

Page 10: Ken Lam, GS1 Hong Kong

© GS1 Hong Kong 2015

Object Traceability = EPCIS

• Electronic Product Code Information Services (EPCIS) is an

open standard used to track movement of objects as they move

through the supply chain.

• The data shared at each read point in the supply chain provides

WHAT, WHEN, WHERE and WHY of each read.

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IoT powered by EPCglobal standard

Internet

ONS (Object Name Service) DNS ( Domain Name System)

EPC Code (Serialized product code)

IP address

EPCIS (Electronic Product Code Information Services)

HTTP (Web service defined by W3C)

Discovery Service Internet Search Engine

Page 11: Ken Lam, GS1 Hong Kong

© GS1 Hong Kong 2015

Converting RFID Big Data to Analytics

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Source: IDTechEx forecast in the new report RFID Forecasts, Players & Opportunities 2014-2024

Executives think that retail

big data insights are

most beneficial for: •merchandising (53%) •marketing (48%) •store operations (42%), •e-commerce (42%), •supply chain (27%), •finance (23%), •loss prevention (21%).

Source: 1010data Retail Study: Executives Discuss the Impact and Further Potential of Big Data in the Retail Industry

“In retail, RFID is seeing rapid growth for apparel tagging - that application alone demands 3 billion

RFID labels in 2014. More that 25 billion RFID tags will

be used on retail apparel and shoes in 2020”

- IDTechEx

Page 12: Ken Lam, GS1 Hong Kong

© GS1 Hong Kong 2015

Omni-channel challenges

12

• Need to fulfill from anywhere and within short time

• Low inventory accuracy & no visibility to inventory levels across channels

• Multiple customer touch points making it difficult to track customer behaviors in association with products

Page 13: Ken Lam, GS1 Hong Kong

© GS1 Hong Kong 2015

RFID enables accurate inventory level

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Mobile RFID Scanning Device

Further reporting

Retail Store Scanning Warehouse Scanning

Page 14: Ken Lam, GS1 Hong Kong

© GS1 Hong Kong 2015

Smart Apparel (Smart Shelf O2O inventory visibility) Cycle Count

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Backroom & sales floor inventory stock take

Inventory visibility for O2O 1. RFID scanner to scan items in the backroom & sales floor 2. Update inventory captured for different stores 3. Update store inventory record for stores with items reserved for O2O fulfillment

Stores Style no / GTIN Color Size In story inventory QTY QTY reserved for online shop

Total

Wan chai

48916682345678 Pink S 58 6 64

48916689845678 Pink M 30 0 3

48916689845677

Pink L 23 2 25

Page 15: Ken Lam, GS1 Hong Kong

© GS1 Hong Kong 2015

Smart Apparel – RFID Capturing Consumer Behaviors for Analytics

15

Consumer take clothes from the RFID senor hanger for trial while reader automatically sense the taken away items and send to the dashboard

RFID smart shelf hanger (with RFID sensor)

Page 16: Ken Lam, GS1 Hong Kong

© GS1 Hong Kong 2015 16

Smart Apparel – RFID Capturing Consumer Behaviors for Analytics

Smart Fashion Store

Windbreaker Color : orange Size: M QTY : 1

Lady Jean Color : Blue Size: 26 QTY : 1

Skirt Color : Pink Size: M QTY : 1

Blouse Color : White Size: M QTY : 1

When all tagged items are hanged on the hanger or placed on the shelf, display product information

Product info Product info Product info

When the item is taken out / sold, the system detected and trigger a flashing alert to inform sales person to refill

Page 17: Ken Lam, GS1 Hong Kong

© GS1 Hong Kong 2015

Big Data Making Big Business

Page 18: Ken Lam, GS1 Hong Kong

© GS1 Hong Kong 2015

The Solution: RFID Tray

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Collect information of EPC/RFID tagged items

Display product information

Capture customer information

Capture data : items displayed, customer behavior, occasions, demographics etc

Page 19: Ken Lam, GS1 Hong Kong

© GS1 Hong Kong 2015

RFID Tagging on the jewelry items

Jewels with RFID tag

Smart Tray (Reader)

Salesperson displays the jewels on Smart Tray to retrieve the product data, and enter the consumer data for analytics. Alter will be trigged if the tagged item leave the tray for certain period of time

consumer behavior analytics dashboard

Benefits

•Reducing stock taking time by 50%

• Improving sales conversion rates

• Enhancing corporate image as a

forerunner and industry leader innovative

technology

• Segment analysis • Consumer selection patterns

• Cross sell opportunities

Page 20: Ken Lam, GS1 Hong Kong

© GS1 Hong Kong 2015

Assuring Genuine Pearl with an Unique Identifier

Page 21: Ken Lam, GS1 Hong Kong

© GS1 Hong Kong 2015

Can you tell which one is Genuine A Grade South Sea Pearl ?

21

A B

In terms of : luster / color / size / shape / spot

Page 22: Ken Lam, GS1 Hong Kong

© GS1 Hong Kong 2015 22

GS1 Hong Kong

18-12-2014

17-04-2015

10-07-2015

ezTRACK Interface

Retailers / resellers validate the authenticity of the pearl necklace with RFID reader & show unique ID / EPC

Scan to capture the nurturing pearls to keep track of the progress (pedigree) & show in ezTRACK ON SCREEN(from commissioning to plantation, harvesting …. Retail)

Creating Brand Loyalty by Origin to Consumer Hands

1

2

Page 23: Ken Lam, GS1 Hong Kong

© GS1 Hong Kong 2015

Creating Brand Loyalty by Bringing Origin to Consumer Hands

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Page 24: Ken Lam, GS1 Hong Kong

© GS1 Hong Kong 2015

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Project Approach:

Serialized QR codes printed on the packaging

Distributors / reseller can validate the origin with mobile apps

Farm Identification

Distributors / Consumer can check the product location and status

Manufacturer Distribution Channel Visibility – Mengniu Dairy

Page 25: Ken Lam, GS1 Hong Kong

© GS1 Hong Kong 2015

Scan QR Code

Consumer can retrieve company information, product information and other promotion information.

Menqniu can make use of these

information to analyze product planning and enhance customer servicing.

Manufacturer Distribution Channel Visibility – Mengniu Dairy

Consumer scan QR code

Page 26: Ken Lam, GS1 Hong Kong

© GS1 Hong Kong 2015

METRO GROUP Food Sourcing, a leading German based Retail and Wholesale

company with the objective to standardized all traceability activities amongst countries.

In 2015, seafood suppliers are required to implement global traceability standard thus

to ultimately increasing supply chain visibility and traceability.

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GS1 HK supports all Asia Pacific Suppliers

Global Standards Based Traceability System is database system to store all information in one platform,

centralize all traceability data.

Metro – Delivering Consumers Trust

Page 27: Ken Lam, GS1 Hong Kong

© GS1 Hong Kong 2015

Information on product will be then easier and faster to access.

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Metro – Delivering Consumers Trust

Page 28: Ken Lam, GS1 Hong Kong

© GS1 Hong Kong 2015

Information on product will be then easier and faster to access.

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Consumers Visualize Traceability Metro

Page 29: Ken Lam, GS1 Hong Kong

© GS1 Hong Kong 2015

Challenges of Counterfeiting

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•Counterfeiting is seriously impacting the brand’s image and revenue •Counterfeiting simply copying the packaging and the barcode •Consumer really difficult to tell between authentic and counterfeit products copied and often counterfeiters copy barcode for fake products

Page 30: Ken Lam, GS1 Hong Kong

© GS1 Hong Kong 2015

GS1 Value+, Anti-Counterfeit

• Secure Code Validation and Traceability e-Pedigree using

ezTRACK (EPCIS)

2

Secure Code

1

Secure Code Validation: Not ready

to Sell Need to Recall

Successful Validate

Already Registered

Label Serial

GLN lookup for

urn:epc:id:sgln:4891668.32668.0

Page 31: Ken Lam, GS1 Hong Kong

© GS1 Hong Kong 2015

GS1 HK “Anti-Counterfeit Barcode”

31

GS1 HK

GS1HK issue encrypted barcode digital printing file.

The authentic brand owner prints the packaging

Hidden digital pattern in the barcode ONLY can be authenticated by the GS1HK trusted mobileapp, without affecting normal retail POS checkout

Trusted Mobile apps

Consumer purchase in on-line or eComm platforms

Page 32: Ken Lam, GS1 Hong Kong

© GS1 Hong Kong 2015

GS1 HK “Anti-Counterfeit Barcode”

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Genuine product

Counterfeit product

Encrypted barcode printing file provided by GS1

Special encryption pattern hidden in the barcode

GS1 HK trusted mobile apps

Barcode copied from the genuine product packaging

Special encryption pattern CANNOT be copied

GS1 HK trusted mobile apps

Page 33: Ken Lam, GS1 Hong Kong

© GS1 Hong Kong 2015

Public Policy

Partners Ecosystem

IOT Maturity

Model

IOT Centre

IOT Awards

IOT Conference

Industry Engagement

Facilitate Adoption

IOT

GS1 IoT Initiatives

Recognize Synergize

Page 34: Ken Lam, GS1 Hong Kong

© GS1 Hong Kong 2015

Awards Objectives

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• Igniting Smarter Hong Kong, Smarter Living:

• Echoing the “Digital 21 Strategy” paper to

encourage the innovative use, development and

adoption of advance technologies specifically in

Internet of Things and Big Data technologies to

uplift business operation efficiency, industry

competitiveness and service qualities, to enable

Hong Kong to stay in the forefront of the

increasingly digitalized world.

• Furthermore, it is to encourage Innovative

applications and services developed from Public

Sector Information in Hong Kong to create

smarter business and better daily life.

• Best Smart Hong Kong ICT 2016 Award Streams (Gold / Silver / Bronze winners in each stream) • Internet of Things of Things

• Big Data Application

• Public Sector Information Applications

Page 35: Ken Lam, GS1 Hong Kong

© GS1 Hong Kong 2015

GS1 Hong Kong Internet of Things Conference 2016, 21 Jun

35

http://hk-iot-conference.gs1hk.org/2016/

Page 36: Ken Lam, GS1 Hong Kong

© GS1 Hong Kong 2015

Originally established in April 2013 and hosted by GS1

Hong Kong with the support from the Innovation and

Technology Commission of the HKSAR Government and

the Hong Kong Science & Technology Parks.

To be relocated in GS1 Hong Kong office in Dec 2015.

Consisting of six zones, in which visitors can touch and

feel the power of IoT technologies in various industries.

Smart Retail

Smart Logistics

Smart Healthcare

Smart Food Safety

Smart Consumer Trust

Smart City

36

Hong Kong IoT Centre

[email protected]

Page 37: Ken Lam, GS1 Hong Kong

© GS1 Hong Kong 2015

For more information, contact:

Ken Lam, Head of Marketing and Industry Engagement

GS1 Hong Kong

<[email protected]>

Please visit www.GS1hk.org