In 2004, Wal-Mart, a world-renowned retailer, required its top 100 suppliers to attach RFID tags to all cargo boxes and pallets delivered to Wal-Mart after January 2005, and small suppliers were also required to implement this policy in 2006. At the same time, with the promotion of the international RFID technology standard ISO/IEC8000 and the emergence of the EPC (Electronic Product Code) standard, the domestic industry has shifted its focus from RFID's technical functions to the commercial market. How big a gold mine is RFID? The latest research report published by In-Stat, a high-tech market research company, even stated that RFID will become the most widely used wireless technology since the emergence of mobile phones. Since 2009, the global sales revenue of radio frequency identification tags has grown from US$300 million in 2004 to US$2.8 billion, and then to the current According to incomplete statistics, RFID has more market opportunities in China. RFID technology has a great role in promoting the automation and real-time monitoring of logistics and supply chain management. As the world's manufacturing factory, China should have the most favorable advantages. Because: 70% of Wal-Mart's goods come from China. At present, China has announced a number of national development plans based on RFID technology.

For example, Chinese citizens will start using ID cards with RFID technology in the future, which means that more than 1 billion RFID-enabled cards will be needed. At the same time, the Chinese government also plans to integrate the functions of all daily card documents, such as bank cards, driver's licenses, credit cards, etc., into one card.

In the Chinese market, the two major factors that restrict the large-scale application of RFID are the pending establishment of RFID standards (spectrum is not divided) and the high cost of RFID chips.

The lack of Chinese standards hinders the market

The absence of China's RFID standards has prevented the entire industry from conducting in-depth technical research and development and production investment, thus restricting the development of the entire industry. Xie Ying, Secretary-General of the China Automation Association, revealed that the determination of the spectrum in the RFID standard technically involves other application sectors such as broadcasting, and relevant experiments are currently being carried out. From an overall technical point of view, China does not have much gap with the West in RFID, although there is a big gap between China and the West in terms of chip industry manufacturing capabilities.

The formulation of China's RFID standards mainly refers to the RFID international standard ISO/IEC8000, which is also the reference basis for the international RFID international standard system. China's RFID standards are based on China's national conditions, and they are based on international standards. The delay in the introduction of China's RFID standards is mainly related to the immaturity of China's related industries. It is difficult to formulate national standards without an industrial foundation. China's related industrial chain is not mature enough, there are few participants, and the lack of stimulation and promotion of industrial applications is becoming a major obstacle to the establishment of RFID-related standards. Zhang Chenghai, deputy director of the China Article Coding Center, believes that only when basic issues such as standards are solved, the application of EPC and RFID can develop rapidly and show an avalanche-like growth. He predicts that it will take at least 3 to 5 years, or even longer, for the Chinese RFID market to mature. Cost is the bottleneck of large-scale application In the 1990s, Chinese export goods were rejected in foreign markets because they did not have barcodes. It was at that time that China's barcode technology developed rapidly. Similarly, with the strong promotion of RFID by international retail giants such as Wal-Mart, China's RFID applications will also develop rapidly. In fact, RFID can be regarded as an antique technology in the IT industry. However, unlike general barcodes that can only scan one object at a time, RFID technology can achieve non-contact identification of multiple objects at a time. In other words, if all supermarket products use RFID tags, we don’t have to wait in long queues when checking out in supermarkets.

Another factor that hinders the widespread use of RFID is the cost issue, which is also a common problem in the world market. At present, the price of radio frequency identification tags is still relatively expensive, ranging from a minimum of US$0.15 to a maximum of more than US$100. However, the high price of electronic tags has become a fatal obstacle to the promotion of this technology from the beginning. Before entering the 21st century, the cost of each tag has been between US$1 and US$2. After entering the 21st century, it finally fell below US$1, reaching between 20 and 75 cents.

However, many suppliers believe that the price of RFID needs to be reduced further. Although the price of RFID tags is already very low, from the perspective of cost accounting, RFID is still too expensive. Because according to the current situation, it is not a problem for manufacturers to spend 5 cents on a container, but it is not a problem for suppliers to spend more than 20 cents on a container.