Local Retailers Hit Hard by Big Bros' Demand for RFID Code

Indian companies may bleed to make their foreign associates richer. Suppliers to retail majors such as Wal-Mart, Metro, Target and Tesco fear a hit on their bottomline as their foreign partners have issued directives to their suppliers to replace bar codes with radio frequency identification (RFID) technology. The retail bigwigs' diktat is giving sleepless nights to domestic companies. Indian suppliers' worst fear is that the cost of RFID labels will squeeze their margins. The cost of one RFID tag results in a loss of about 30 US cents. Source: agencyfaqs