UHF Logistics, a subsidiary of Regal Group, Inc., announced on yesterday that its operating subsidiary Shenzen Rui Pu Da Electronic Technology Company Ltd. has entered into a strategic agreement with ZTE Chang Tian Information Technology Ltd., a subsidiary of Zhong Xing Telecommunications Equipment Company Limited.
ZTE is China’s largest listed telecommunications and wireless solutions provider. As terms of the agreement, Shenzen Rui Pu Da will become ZTE’s exclusive provider of RFID solutions in the Chinese clothing industry.
ZTE will jointly develop RFID applications with Rui Pu Da that will improve retail operations by enabling enhancements such as real-time inventory tracking and improved loss prevention, which will lead to higher productivity and customer satisfaction.
The agreement validates Rui Pu Da’s growing reputation as a provider of RFID solutions to the clothing industry. Since early 2010, Rui Pu Da has been working with Hong Kong clothing giant Lilanz Stores to develop an RFID inventory and sales system for their Chinese retail stores.
“Our agreement with ZTE-V represents a major opportunity for UHF Logistics and signifies that our RFID products and solutions are increasingly recognized and valued by some of the largest and most established companies in China,” said UHF Logistics CEO Sammul Su. The size of the Chinese clothing industry is huge and the National Bureau of Statistics of China recently reported 2010 clothing sales to August 31 of US$52 billion, an increase of 23.7% over the same period for 2009.
Su added, “The evolution of RFID as an enabling technology has prompted retailers worldwide to investigate the implementation of the technology to increase process efficiency, expand product and demand visibility, control shrink management, and increase profits. In addition to the traditional use of RFID technology to support supply chain management, by efficiently maintaining and counting inventory, our RFID solutions can also provide significant product up-selling as well as cross-selling opportunities and enhance customer loyalty. We will item-level RFID tag all clothing products and customer loyalty cards in each individual store, thus creating significant cross-selling opportunities on a real-time basis as well as boost customer satisfaction through personalization.”
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