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Empowering Omni-Channel Consumer Trust with Innovations Ken Lam, Head of Marketing & Industry Engagement, GS1 Hong Kong June 2016

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Empowering Omni-Channel

Consumer Trust with Innovations

Ken Lam,

Head of Marketing & Industry Engagement, GS1 Hong Kong

June 2016

© 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.”

© GS1 Hong Kong 2015

GS1 Standards

3

© GS1 Hong Kong 20154

IoT (Internet of Things) refer to any smart interconnecteddevices (e.g. RFID, sensors, etc.) that enterprises ororganization adopted to obtain more visibility into theidentification, location, and condition of products, assets,transactions, or even people with the ultimate goals to be ableto trace their pedigree and to drive more effective, timelybusiness decisions or to improve customer interactions.

What is IoT (物聯網)?

© 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

5

© GS1 Hong Kong 2015

IoT Smart City Innovations - Industry

• Siemens has said these smart things are starting to power a fourth Industrial Revolution to Industry 4.0

• Cisco-made sensors can, when worn by miners, detect the presence of life-threatening gases. Others can sense if workers are moving or still—perhaps injured

• In Philadelphia, they’ve invested in solar-powered garbage cans that crush waste and send a missive to a dispatcher requesting pickup when they’re full

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© GS1 Hong Kong 2015

互聯網+“一物一碼”時代 – One Object One Code

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© GS1 Hong Kong 2015

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

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© GS1 Hong Kong 2015

The EPC Standard for IOT

• Electronic Product CodeIdentify

• Low cost EPC UHF Gen2 RFID tag Capture

• EPC Information Services (EPCIS) Share

9

© 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

WebApplications

NativeApplications

BarcodeScanners

MobileDevices

HandheldReaders

RFID Readers

CapturingDevices & Apps

MobileApplications

External PartiesEnterprise Internal Systems

ERP WMS POS …FLEETMGT BI

System Data Exchange / Sharing

EnterpriseApplications

Cold ChainLogger

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

ERP WMS …

EPCIS

Cold Chain Readers

Security Management

© 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

© 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

© GS1 Hong Kong 2015

Omni-channel challenges

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• 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

© GS1 Hong Kong 2015

RFID enables accurate inventory level

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Mobile RFID Scanning Device

Further reporting

Retail Store Scanning Warehouse Scanning

1 2

3

© 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 O2O1. RFID scanner to scan items in the backroom & sales floor2. 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

© GS1 Hong Kong 2015

Smart Apparel – RFID Capturing Consumer Behaviors for Analytics

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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)

© GS1 Hong Kong 2015 17

Smart Apparel – RFID Capturing Consumer Behaviors for Analytics

WindbreakerColor : orangeSize: M QTY : 1

Lady JeanColor : BlueSize: 26 QTY : 1

SkirtColor : PinkSize: M QTY : 1

BlouseColor : WhiteSize: 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

Smart Fashion Store

© GS1 Hong Kong 2015

Big Data Making Big Business

© 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

© 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

© GS1 Hong Kong 2015

Assuring Genuine Pearl with anUnique Identifier

© GS1 Hong Kong 2015

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

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A B

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

© GS1 Hong Kong 2015 23

GS1 Hong Kong

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

18-12-2014

17-04-2015

10-07-2015

1

2

© GS1 Hong Kong 2015

Creating Brand Loyalty by Bringing Origin to Consumer Hands

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© 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

© 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

© 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

© GS1 Hong Kong 2015

Brand Owner/Manufacturer

Distributor Retailer

Anti-counterfeiting Channel management Consumer engagement

Against parallel imports Distribution management

e-Couponing: discount, free sample, lucky draw

Extended product info: brand story, video, etc

Funded by:Enabled by:

Features

GS1 Value+, Anti-Counterfeit

© GS1 Hong Kong 2015

Web Service Discovery Service FONS

Secure Label Management ezTRACK (EPCIS) BarcodePlus(Local Data Pool)

GS1 PA SolutionLabel SGTIN

Secure CodeProduct GTIN

Product SGTIN

+ EPCIS Network + GEPIR

+ Data Aggregator

Genuine Information ePedigree

Product & Company Information

1 Look up

2 DataRepository

3

Results

GS1 Value+, Anti-CounterfeitSolution Overview

© GS1 Hong Kong 2015

Visibility Elements

What.. Where..

When.. Why..

EPCIS

Repository

Traceability

Applications

e-Pedigrees

Query Interface Service (QI)

Capture Interface Service (CI)

Certified EPCIS Network

GS1 Value+, Anti-CounterfeitSolution Overview

© GS1 Hong Kong 2015

3131

Label Serial Secure Code

Secure Code Validation:

Not ready to SellNeed to Recall

Successful Validate Already Registered

1

2

3

4

5

GLN lookup for

urn:epc:id:sgln:

4891668.32668.0

GS1 Value+, Anti-CounterfeitSecure Code Validation and Traceability e-Pedigree using ezTRACK (EPCIS)

© GS1 Hong Kong 2015

Make your barcode not only a barcode, but as a

weapon for your brand protection

GS1 REAL Barcode, Anti-Counterfeit

© GS1 Hong Kong 2015 33

A barcode can NEVER be copied as a genuine

product one from REAL BARCODE with patented

encryption technology.

Encrypted barcode digital printing file with hidden digital pattern

GS1 REAL Barcode, Anti-CounterfeitSolution Overview

© GS1 Hong Kong 2015

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

Before Purchase, consumer can verify the product is genuine or fake

GS1 REAL Barcode, Anti-CounterfeitHow it works

© GS1 Hong Kong 2015

GS1 REAL Barcode, Anti-Counterfeit

© GS1 Hong Kong 2015

GS1 IoT Initiatives

Public Policy

Partners Ecosystem

IoT Advisory Council

IOT Centre

IOT Awards

IOT Conference

Industry Engagement

Facilitate Adoption

IOTRecognize Synergize

© 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

© 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

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Hong Kong IoT Centre

[email protected]

© 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