Do RFID tags still play a role in retail? What are their benefits?
Becker: It’s the same with any technological innovation. The testing phase follows the hype, resulting in disillusionment. Eventually it becomes clear where the new technology is useful and where it isn’t. Two areas in which RFID will be used are the transport of large-volume products and pallets and the accurate labeling of vehicle components. But it won’t catch on unless the technology works 100 percent, which means the scanners don’t misread the tags. What’s more, it must be possible to fully integrate RFID with the retailing systems. SAP INFO: How important are new markets such as Brazil, Russia, India, and China? Becker: For large companies, these emerging markets represent opportunities for expansion. In Germany, for example, we are still seeing growth in retailing space but not in revenue – which puts the brakes on margin and profit increases. Some segments are also experiencing a surplus, as is the case with home improvement stores in the east of the country. In contrast, Russi