Cainiao Network, (“Cainiao”), the logistics arm of Alibaba Group Holding Limited, today announced its latest achievement in the area of identification technology, with the research and development, manufacturing and sales of over 100 million RFID tags in less than two years since it was officially launched in April 2021.

Radio Frequency Identification (RFID) is the third generation of identification technology after barcodes and QR codes, and facilitates the transmission of data stored in a microchip through radiofrequency signals. Globally, the RFID market was valued at US$11.8 billion in 2021, and is projected to reach US$31.5 billion by 2031, a CAGR of 10.2 percent from 2022 to 2031[1]. At present, it is mostly used in logistics scenarios such as inventory management within supply chain, inbound and outbound deliveries, and full-link tracing.

To deliver the highest level of accuracy, Cainiao has optimized the RFID tags, readers, and identification algorithms, which in turn enable a larger-scale commercial application of RFID technology in logistics and supply chains. Here, Cainiao spearheaded R&D efforts to develop customized RFID tags that displayed enhanced identification sensitivity, especially in challenging scenarios involving metals and liquids.

Following this technological breakthrough, Cainiao tailored industry-specific solutions that cater to sectors such as fashion, food and logistics to better support supply chain management for businesses. For example, when applied in the food industry, RFID tags can be embedded in the cartons to increase supply chain visibility and allow businesses to make dynamic decisions based on real-time data and analysis. Similarly, in the fashion industry characterized by thousands of SKUs, businesses face pressures in inventory management especially ahead of large shopping festivals. Here, Cainiao empower businesses with supply chain digitalization and full-chain visualization from factories to warehouses and stores.

“Internet of Things (IoT) has permeated a range of industries, and we believe that the large-scale application of Cainiao's RFID technology will help to drive logistics and supply chain digitalization. By adopting a data-driven approach to operations and decision-making, businesses will benefit from greater improvements in time and cost efficiencies,” said Dr Ding Hongwei, Vice President of Cainiao Network. “Currently, the market application of RFID is still in its infancy, and we strive to continue our endeavour to refine its core technology and enhance the advantages of RFID products and solutions in order to drive the overall digital transformation across industries.”

He added, "In the past, it would often take employees up to three days to conduct store inventory checks, but with RFID technology, it only takes half an hour to complete using a RFID handheld device. This not only improves efficiencies and accuracy but also reduces human errors. With RFID technology, consumers can also self-checkout, enhancing consumer experience."